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Airbnb (ABNB)
NASDAQ:ABNB
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Airbnb
(NASDAQ:ABNB)72Outperform
Positive Factors
Financial Performance
Airbnb reported strong Q4 results with gross bookings, revenue, and adj. EBITDA all firmly ahead of consensus.
Growth and Expansion
Airbnb will begin its journey to gradually add products beyond the core business, expanding into 'living', 'experiences', 'advertising' and beyond, all with $bn+ potential.
Negative Factors
Competitive Pressure
Intensifying competition from other online and traditional travel service providers, as well as new entrants like Google, adds competitive pressure to Airbnb.
Airbnb (ABNB) vs. S&P 500 (SPY)
Market Cap
$87.56B
Dividend YieldN/A
Average Volume (3M)5.73M
Price to Earnings (P/E)34.1
Beta (1Y)1.32
Revenue Growth11.95%
EPS Growth-44.02%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)4.13
Shares Outstanding432,876,650
10 Day Avg. Volume5,509,319
30 Day Avg. Volume5,728,875
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.01
Price to Cash Flow (P/CF)47.70
P/FCF Ratio47.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$161.33Price Target Upside14.08% Upside
Rating ConsensusHold
Number of Analyst Covering32
Airbnb Business Overview & Revenue Model
Company DescriptionFounded in 2007, California-based Airbnb, Inc. is an online marketplace which connects hosts and guests online or through mobile devices to book travel services and accommodation facilities worldwide. The company provides apartments, villas, bungalows, private homestays, and tourism services.
How the Company Makes MoneyAirbnb generates revenue primarily through service fees charged to both guests and hosts on each booking facilitated through its platform. Guests typically pay a service fee ranging from 0% to 20% of the booking subtotal, while hosts are charged a service fee of around 3% for each reservation. Additionally, Airbnb offers a 'Host-Only Fee' option for professional hosts, which ranges from 14% to 16%. The company also earns money through its 'Airbnb Experiences' service, which allows hosts to offer activities and tours, with Airbnb earning a commission on each experience booked. Significant partnerships with property management companies and tourism boards also contribute to its earnings, enhancing its market presence and expanding its service offerings.
Airbnb Financial Statement Overview
Summary
Airbnb's financial performance is robust, characterized by strong revenue growth, high profitability, and efficient cash flow management. The company maintains a solid balance sheet with low leverage, contributing to its financial stability. While net income has decreased, the overall financial health remains strong, positioning Airbnb well for future growth.Income Statement
Airbnb has demonstrated strong revenue growth with a 12% increase from 2023 to 2024, indicating robust demand. The gross profit margin stands at 83.06%, showcasing effective cost management. Net profit margin is at 23.85%, down from the previous year due to lower net income. EBIT and EBITDA margins are solid at 22.98%, reflecting operational efficiency.85
Very Positive
Balance Sheet
The debt-to-equity ratio is low at 0.24, suggesting prudent leverage. Return on Equity (ROE) is strong at 31.47%, indicating excellent shareholder returns. However, the equity ratio is moderate at 40.14%, suggesting a balanced asset financing mix. Overall, the balance sheet reflects strong financial health with manageable debt levels.78
Positive
Cash Flow
Airbnb's free cash flow has grown by 16.33%, highlighting efficient cash generation. The operating cash flow to net income ratio is at 1.71, showing solid cash conversion from earnings. Free cash flow to net income ratio also stands at 1.71, indicating effective cash management and strong liquidity.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.10B | 9.92B | 8.40B | 5.99B | 3.38B | Gross Profit |
| 9.22B | 8.21B | 6.90B | 4.84B | 2.50B | EBIT |
| 2.55B | 1.52B | 1.80B | 429.00M | -3.59B | EBITDA |
| 2.55B | 2.23B | 2.10B | -64.36M | -4.38B | Net Income Common Stockholders |
| 2.65B | 4.79B | 1.89B | -352.00M | -4.58B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.61B | 10.07B | 9.62B | 8.32B | 6.39B | Total Assets |
| 20.96B | 20.64B | 16.04B | 13.71B | 10.49B | Total Debt |
| 2.29B | 2.30B | 2.34B | 2.42B | 2.33B | Net Debt |
| -4.57B | -4.57B | -5.04B | -3.65B | -3.15B | Total Liabilities |
| 12.55B | 12.48B | 10.48B | 8.93B | 7.59B | Stockholders Equity |
| 8.41B | 8.16B | 5.56B | 4.78B | 2.90B |
| Cash Flow | Free Cash Flow | |||
| 4.52B | 3.88B | 3.40B | 2.16B | -667.10M | Operating Cash Flow |
| 4.52B | 3.88B | 3.43B | 2.19B | -629.73M | Investing Cash Flow |
| -616.00M | -1.04B | -28.00M | -1.35B | 79.59M | Financing Cash Flow |
| -3.57B | -2.43B | -689.00M | 1.43B | 2.94B |
Airbnb Technical Analysis
Positive
141.42
Price Trends
136.12
Positive
135.97
Positive
135.45
Positive
Market Momentum
1.87
Positive
50.82
Neutral
13.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABNB, the sentiment is Positive. The current price of 141.42 is below the 20-day moving average (MA) of 142.59, above the 50-day MA of 136.12, and above the 200-day MA of 135.45, indicating a neutral trend. The MACD of 1.87 indicates Positive momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 13.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABNB.
Airbnb Risk Analysis
Airbnb disclosed 53 risk factors in its most recent earnings report. Airbnb reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Airbnb Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $160.74B | 28.37 | -146.32% | 0.71% | 11.11% | 47.03% | |
72 Outperform | $87.56B | 34.10 | 31.48% | ― | 11.95% | -44.02% | |
72 Outperform | $24.32B | 20.86 | 79.25% | ― | 6.64% | 69.85% | |
68 Neutral | $63.42B | 42.93 | -41.19% | 0.23% | 9.17% | 42.78% | |
66 Neutral | $74.66B | 32.52 | -144.82% | 0.91% | 5.85% | -18.43% | |
62 Neutral | $1.94B | 835.76 | 0.53% | ― | 2.63% | -58.77% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
ABNB
Airbnb
141.42
-17.91
-11.24%
EXPE
Expedia
188.70
54.67
40.79%
MAR
Marriott International
270.80
25.39
10.35%
BKNG
Booking Holdings
4,898.40
1,498.30
44.07%
TRIP
TripAdvisor
13.79
-12.87
-48.27%
HLT
Hilton Worldwide Holdings
259.56
56.28
27.69%
Airbnb Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 0.27% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While Airbnb, Inc. showcased strong financial performance, free cash flow, and platform enhancements, they also face challenges such as slower growth expectations for Q1 2025 and regulatory hurdles in key urban markets.Highlights
Strong Financial Performance
Airbnb, Inc. reported a 12% year-over-year revenue growth to $2.5 billion for Q4 2024. Net income was $461 million, and adjusted EBITDA was $765 million. The full-year adjusted EBITDA totaled $4 billion, with a margin of 36%.
Record Free Cash Flow
Airbnb, Inc. generated $458 million of free cash flow in Q4 and $4.5 billion for the full year, representing a free cash flow margin of 40%.
Cohost Network Expansion
The cohost network has grown to almost 100,000 listings in just four months, leading to listings managed by cohosts earning twice as much as those without.
Technology and Platform Enhancements
Airbnb, Inc. rebuilt its platform with a new technology stack, leading to a smoother guest and host experience. This includes new listing management tools and a unified messaging platform.
Successful Stock Repurchase Program
Airbnb, Inc. repurchased $838 million of Class A common stock during Q4 and $3.4 billion for the full year, with $3.3 billion remaining on the repurchase authorization.
Lowlights
Growth Rate Headwinds
For Q1 2025, Airbnb, Inc. expects to deliver revenue growth of only 4% to 6% year-over-year due to FX headwinds and calendar impacts.
Profitability Challenges
Airbnb, Inc. expects adjusted EBITDA margin to decline in Q1 2025 compared to Q1 2024, driven by revenue impacts.
Regulatory and Market Challenges
Airbnb, Inc. continues to face challenges in urban markets, particularly in places like New York City where strict regulations have impacted business.
Company Guidance
The guidance provided in the Airbnb earnings call for Q4 2024 highlighted several key metrics and strategic directions for the company. Airbnb reported Q4 revenue of $2.5 billion, marking a 12% year-over-year growth, with net income of $461 million and an adjusted EBITDA of $765 million, resulting in a full-year adjusted EBITDA of $4 billion and a margin of 36%. The company generated $458 million in Q4 free cash flow, contributing to a full-year total of $4.5 billion, with a free cash flow margin of 40%. Looking ahead, Airbnb expects Q1 2025 revenue between $2.23 billion and $2.27 billion, representing 4% to 6% year-over-year growth, or 7% to 9% excluding FX headwinds. For 2025, Airbnb plans to invest $200 million to $250 million in launching new businesses, with an anticipated full-year adjusted EBITDA margin of at least 34.5%. The company aims to continue expanding its global market presence and enhancing its core services, while also introducing new offerings to drive long-term growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.