Airbnb's Bookings Improve, Revenue Recovers
By Maria Armental
Airbnb Inc. reported more than $10 billion in bookings in the
latest period while revenue recovered from the March 2020 quarter,
when the pandemic devastated the travel industry.
But the company's loss surged to more than $1 billion, driven by
costs related to debt repayment and warrants.
The San Francisco company last year raced to raise money to
weather the crisis, but the warrants it gave investors on those
loans have significantly appreciated, leading to a $292 million
noncash adjustment in the latest period.
Airbnb, whose stock started publicly trading in December,
reported a net loss of $1.17 billion, compared with a $341 million
loss a year ago.
Analysts surveyed by FactSet expected a $717 million loss.
The home-sharing company said the value of all services bought
during the quarter, including cleaning fees and taxes, rose to
$10.29 billion, from $6.77 billion last year. Revenue rose to $887
million from $842 million a year earlier and $839 million in the
comparable 2019 period.
The first quarter is typically the lowest revenue quarter due to
the seasonality of the business, the company said. Still, the
revenue results were better than analysts expected and marked a
significant improvement from the 22% decline in the December
Company officials have said they are seeing gradual business
improvement as people appear more willing to book stays, as well as
an uptick in local travel and long-term stays of at least 28
nights, softening the impact from cancellations and falling
bookings as a result of the pandemic.
On Thursday, company officials said that while it was still too
early to give financial projections for the full year, they pointed
to improving trends in April from March in both nights and
experiences booked and gross booking value.
The company said that travel to top cities remains depressed but
noted an increase in family and group travel, especially outside of
Active listings in nonurban areas rose nearly 30% in the March
quarter from 2019, the company said.
Long-term stays, Airbnb said, accounted for nearly a quarter of
nights booked, before cancellations or alterations, up from 14% in
Write to Maria Armental at firstname.lastname@example.org
(END) Dow Jones Newswires
May 13, 2021 16:28 ET (20:28 GMT)
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