• Revenue: $3.7 billion, a 10% year-over-year increase.

• Net Income: $1.4 billion, with a net income margin of 37%.

• Free Cash Flow: $1.1 billion generated in Q3; trailing 12-month free cash flow of $4.1 billion.

• Share Repurchase: $1.1 billion worth of shares repurchased in the quarter.

• Nights and Experiences Booked: 123 million.

• Active Listings: Over 8 million.

• App Bookings: Nights booked on the app increased 18% year-over-year, accounting for 58% of nights booked.

• Guest Arrivals: Surpassed 2 billion guest arrivals.

• Host Cancellations: Reduced by almost 30% compared to a year ago.

• Warning! GuruFocus has detected 5 Warning Signs with ABNB.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Airbnb Inc (NASDAQ:ABNB) reported a strong third quarter with revenue growing 10% year over year to $3.7 billion.

• Net income reached $1.4 billion, representing a net income margin of 37%.

• The company generated $1.1 billion in free cash flow, contributing to a total trailing 12-month free cash flow of $4.1 billion.

• Airbnb Inc (NASDAQ:ABNB) surpassed 2 billion guest arrivals, indicating strong demand and growth potential.

• The introduction of the co-host network has shown significant interest, with over 20,000 potential new co-hosts expressing interest shortly after launch.

Negative Points

• The company experienced a slower start to the quarter due to shorter booking lead times compared to the previous year.

• There is a noted margin compression in the fourth quarter, with expectations of a margin around 27-28%, down from previous quarters.

• Airbnb Inc (NASDAQ:ABNB) faces regulatory challenges in key markets like New York City, impacting its ability to operate freely.

• Supply growth, while still strong, has been affected by the removal of low-quality listings, which could impact overall growth.

• The company anticipates that new services will require upfront investment before generating significant revenue, potentially impacting short-term financial performance.

Q & A Highlights

Q: Can you provide insights on the supply growth and the impact of the co-hosting initiative? A: Elinor Mertz, CFO, explained that Airbnb's focus has shifted towards enhancing the quality of supply rather than just increasing quantity. The introduction of guest favorites and removal of low-quality listings have improved guest experiences. Supply growth continues to exceed demand, and the co-hosting initiative is expected to unlock millions of new listings, primarily from everyday people listing their homes on Airbnb.