New monetary reporting exhibits how tough the unicorn’s downturn was
In case you’re like me, this yr’s chaotic information cycles have made it arduous to trace any single story nicely. So this morning I wish to put collectively a financially-focused chronology of Airbnb’s yr, together with the brand new information. Sufficient has occurred over the previous few months that any prior work we’ve carried out is just too dated to make use of.
So, let’s rewind the clock and dig into the largest monetary second from Airbnb’s 2020, capping off with the most recent reporting, together with particulars from the corporate itself on reserving quantity restoration as we go.
This needs to be straightforward, enjoyable and helpful. Let’s go!
Heading into 2020, Airbnb promised to go public in 2020. On condition that there’s technical strain from holders of Airbnb inventory choices for the corporate go public contained in the yr, the vow made sense. Airbnb was based round 12 years in the past, that means that the corporate was already a bit aged for a personal agency on an IPO path. Toss within the choices difficulty, and if Airbnb wished to carry onto its workforce, this was the yr to go.
And Airbnb was well-capitalized heading into this yr, so a direct itemizing was within the playing cards.
Enter 2020 and some surprising occasions. When COVID-19 hit Airbnb’s key markets it took the journey market with it, resulting in this column asking on March 18th whether or not the corporate might go public this yr given the state of its business. At that time we knew that Airbnb’s money stability was about $2 billion heading into the beginning of the yr, and that the corporate had reported This autumn 2019 income of round $1.1 billion (+32% YoY, per Bloomberg) and unfavourable earnings earlier than curiosity, taxes, depreciation and amortization of $276.Four million (+92.4% YoY, per Bloomberg).
The corporate’s persistent lack of income heading into 2020 was the topic of our curiosity at first of the yr.
In late March, Airbnb introduced that it might pay out $250 million to hosts to melt the blow of the pandemic’s journey declines. That was not an affordable transfer, and when the corporate expanded the coverage this column wrote that it was “an clever if costly approach to assist protect person belief.”