Airbnb’s Q2 revenue falls by almost 70%

Home-share startup moving forward with plans for an IPO this year

TRD NATIONAL /
Aug.August 12, 2020 04:55 PM
Airbnb CEO Brian Chesky (Getty)

Airbnb CEO Brian Chesky (Getty)

Airbnb’s revenue fell by a reported 67 percent in the second quarter, as the startup weathered the fallout from a halt in global travel.

The company’s quarterly revenue plunged to $335 million — down from more than $1 billion in the same period last year, according to Bloomberg, which cited sources familiar with the matter.

By contrast, Airbnb generated $842 million in sales in the first quarter, the publication said.

The company reportedly posted a second quarter loss before interest, taxes, depreciation and amortization of $400 million. In the first quarter, the adjusted loss was reported as $341 million — up from a loss of $292 million in the same period of the prior year.

Despite the dismal results, Airbnb is proceeding with a 2020 public offering, and plans to file paperwork with the Securities and Exchange Commission as early as this month.

Airbnb had initially planned to start the process in March, but shelved those plans because of the pandemic. Morgan Stanley has been selected to lead the offering, according to the Wall Street Journal.

The company that goes public will be fundamentally different than the one that announced its plans for an IPO last year. In May, Airbnb laid off almost 2,000 employees and saw its valuation fall to $18 billion from $31 billion. In an interview with CNBC in June, CEO Brian Chesky acknowledged that after 12 years of building the business, “we lost almost all of it in a matter of four to six weeks.”

The company has since reported an uptick in bookings, as travel restrictions loosen and quarantine-weary residents explore domestic options. According to Airbnb, guests booked more than one million nights of future stays on July 8 — the highest level since March 3.

[Bloomberg] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)

The Airbnb crackdown continues: City targets three more buildings

The Airbnb crackdown continues: City targets three more buildings
Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)

Airbnb host narrowly clears hurdle in First Amendment claim against city

Airbnb host narrowly clears hurdle in First Amendment claim against city
A West Village Airbnb listing (Credit: Airbnb)

Airbnb Luxe launched without listings in one of their biggest potential markets — why?

Airbnb Luxe launched without listings in one of their biggest potential markets — why?
Airbnb CEO Brian Chesky (Getty, iStock)

Why Airbnb is going public in a pandemic

Why Airbnb is going public in a pandemic
WIll Smith as the Fresh Prince and the Los Angeles mansion (Getty, Airbnb)

Stay at the “Fresh Prince of Bel-Air” mansion for $30/night

Stay at the “Fresh Prince of Bel-Air” mansion for $30/night
Airbnb's Brian Chesky and Bill Ackman (Getty)

Bill Ackman on Airbnb: “I wouldn’t use the word rebuff”

Bill Ackman on Airbnb: “I wouldn’t use the word rebuff”
Airbnb's Brian Chesky (Getty, iStock)

Airbnb’s IPO roadshow, now in the Zoom waiting room

Airbnb’s IPO roadshow, now in the Zoom waiting room
Bob Dylan, Zelda and F. Scott Fitzgerald, with Big Pink (Credit: Evening Standard/Getty Images, Bettmann/Getty Images, and Wikipedia)

Dylan who? Covid shifts focus off celeb-tied short-term rentals

Dylan who? Covid shifts focus off celeb-tied short-term rentals
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...