Airbnb has released its prospectus to debut on public markets.
The corporation made $219 million in net income on revenues of $1.34 billion remaining quarter. That was down nearly 19% from $1.65 billion in revenue a year prior.
The organization stated it plans to alternate beneath the symbol “ABNB” on the Nasdaq.
Airbnb on Monday released its prospectus to debut on public markets. The organisation allows customers to book short-term rentals and experiences whilst traveling.
The organization made $219 million in internet earnings on revenues of $1.34 billion remaining quarter. That was once down nearly 19% from $1.65 billion in revenue a 12 months prior. Despite primarily turning net losses, the company has had different occasional quarters of profitability, which include the 2nd and third quarters of 2018 and the 0.33 quarter of 2019.
The organization stated it plans to exchange under the symbol “ABNB” on the Nasdaq.
In its prospectus, the enterprise put an emphasis on constructing a neighborhood round its hosts and guests, positioning that community as a differentiating issue from its competitors. The enterprise said it would set up 9.2 million shares of non-voting stock aside in an endowment fund for hosts.
“Our friends are not transactions — they are engaged, contributing contributors of our community,” the organization stated in its prospectus summary. “Once they become a part of Airbnb, company actively participate in our community, return many times to our platform to e book again, and endorse Airbnb to others who then be part of themselves. This demand encourages new hosts to join, which in turn attracts even extra guests. It is a virtuous cycle — guests attract hosts, and hosts attract guests.”
In 2019, the employer pronounced a net loss of $674 million on revenues of $4.81 billion. Thus some distance in 2020, the organization has turned a internet loss of nearly $697 million on revenues of $2.52 billion. The decline is probable from the impact of the coronavirus, which put the brakes on amusement and commercial enterprise travel in the past this year.
“The Covid-19 pandemic and the have an impact on of moves to mitigate the Covid-19 pandemic have materially adversely impacted and will continue to materially adversely affect our business, consequences of operations, and economic condition,” the enterprise listed as its first threat factor.
The enterprise lists Booking Holdings, Expedia Group, Google, TripAdvisor, Trivago, Craigslist and inn chains Marriott, Hilton and others amongst its competitors. The employer will have three classes of stock. Class A stock holders will get one vote per share while class B holders, which consist of the founders and early investors, will get 20 votes per share. Class H holds no votes and is principally for long-time hosts.
A quick bounceback from the pandemic
Airbnb has persevered a difficult 2020. As the coronavirus decimated journey around the world, the company raised $2 billion in new debt funding at a valuation of $18 billion and introduced foremost cost-cutting initiatives, along with plans to lay off 25% of its staff, or almost 1,900 employees. The organisation also slashed advertising expenses and raised billions of greenbacks in debt.
The coronavirus pandemic delivered the journey enterprise to a halt, resulting in an estimated $443 billion of misplaced revenue for the reason that the commencing of March, according to a Nov. 5 report from the U.S. Travel Association.
Airbnb rebounded, however, after a surge of leases in rural areas as residents with capability fled pandemic-stricken cities. The rebound started within two months of the pandemic, the corporation said in its prospectus.
“In early 2020, as Covid-19 disrupted travel throughout the world, Airbnb’s enterprise declined significantly,” the employer wrote. “But within two months, our commercial enterprise model began to rebound even with restricted global travel, demonstrating its resilience. People desired to get out of their properties and yearned to travel, however they did now not prefer to go a ways or to be in crowded motel lobbies. Domestic journey shortly rebounded on Airbnb around the world as millions of friends took journeys nearer to home. Stays of longer than a few days began increasing as work-from-home became work-from-any-home on Airbnb. We trust that the traces between journey and living are blurring, and the international pandemic has accelerated the capacity to live anywhere. Our platform has tested adaptable to serve these new approaches of traveling.”
Airbnb stated its variety of listings has declined and might also continue to decline in section due to the pandemic. In particular, some people rely on Airbnb to assist pay dwelling fees or mortgages, and those human beings might also get knocked off the platform.
“It is now not but clear what financial have an impact on the severe tour reduction occurring at some stage in the Covid-19 pandemic will have on these folks or whether or not they will be able to preserve their houses or function their agencies as journey resumes,” the employer wrote in its hazard factors. “Our business, results of operations, and economic condition ought to be materially adversely affected if our hosts are unable to return to regular operations in the close to to immediate term.”
Unusually, the employer has a Stakeholder Committee on its board of directors whose mission is to consider interests of “key stakeholders,” together with guests, hosts, communities and employees. The thinking of “stakeholder capitalism” envisions a departure from usual enterprise practices which put shareholder pastimes first, and alternatively sees business as serving many groups.
Airbnb persisted numerous problems with its hosts this 12 months in view that imposing an extenuating circumstances policy in March that overrode hosts’ cancellation insurance policies and claimed to offer full refunds to guests impacted via the coronavirus pandemic.
Later, Airbnb announced it would set up a $250 million coronavirus comfort fund for hosts, returning 25% of what they would have typically acquired under their cancellation policies, but many hosts who spoke with CNBC complained that they have been no longer receiving the correct amounts or any payments at all.
In November, the organisation was hit with a proposed class-action lawsuit by one of its hosts, alleging that the tech enterprise violated its contract with hosts when it enforced the extenuating situations policy.
Airbnb is #41 on the 2020 CNBC Disruptor 50 list and the solely startup to be named to CNBC’s annual listing eight times.