Airbnb’s Q2 revenue falls by almost 70%

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

TRD New York /
Aug.August 12, 2020 05:05 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
Harvey Hernandez and Cindy Diffenderfer (Patrick McMullan/Getty; iStock)

Harvey Hernandez’s former partner seeks to put NGD Homesharing in receivership

Harvey Hernandez’s former partner seeks to put NGD Homesharing in receivership
Miami Beach Mayor Dan Gelber and 1531 Stillwater Drive (Getty, Zillow)

Miami Beach slashes fines for illegal short-term rentals

Miami Beach slashes fines for illegal short-term rentals
Opera Tower (Wikipedia, Airbnb)

Opera Tower condo association sues Airbnb amid short-term rental crackdown

Opera Tower condo association sues Airbnb amid short-term rental crackdown
An illustration f Mayor of Miami Beach Dan Gelber (Credit: Nicholas Hunt/Getty Images)

Miami Beach to allow short-term rentals in condos, hotels

Miami Beach to allow short-term rentals in condos, hotels
The appeals court \rejected Miami Beach’s petition to overturn a ruling that determined that the city’s exorbitant fines for short-term rental violators ran afoul of state law (Airbnb, iStock)

Miami Beach racks up another court loss over short-term rental enforcement

Miami Beach racks up another court loss over short-term rental enforcement
Rafael Serrano and 3098 Alton Road

Appeals court rules Miami Beach cannot shut off water for nonpayment of short-term rental fines

Appeals court rules Miami Beach cannot shut off water for nonpayment of short-term rental fines
Miami Beach Mayor Dan Gelber (Credit: EVA MARIE UZCATEGUI/AFP via Getty Images)

Miami Beach shuts down short-term rentals due to coronavirus

Miami Beach shuts down short-term rentals due to coronavirus
Harvey Herndandez

Airbnb settles litigation with Miami development group alleging fraud

Airbnb settles litigation with Miami development group alleging fraud
arrow_forward_ios

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

Loading...