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Airbnb (ABNB)
NASDAQ:ABNB
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Airbnb
(NASDAQ:ABNB)
75Outperform
Positive Factors
Financial Performance
Despite mixed first-quarter results, Airbnb's better-than-expected EBITDA performance is a positive sign.
Market Expansion
Progress across Airbnb's Next9 markets is encouraging, with these markets growing more than twice as fast as Airbnb's core markets, and first-time bookers in Brazil and Japan increasing significantly.
Product Development
Airbnb's Summer product release is expected to lay the foundation for improving N&EB growth going forward.
Negative Factors
Earnings Outlook
The analyst has reduced earnings per share estimates for the years 2025 and 2026 due to more conservative assumptions.
Market Demand
Management noted softer demand in the U.S. due to broader uncertainties, contributing to lower-than-expected second-quarter N&EB growth guidance.
Price Target
The analyst has lowered the target price for Airbnb to $130 from $175, indicating a less optimistic outlook.
Airbnb (ABNB) vs. S&P 500 (SPY)
Market Cap
$78.51B
Dividend YieldN/A
Average Volume (3M)6.25M
Price to Earnings (P/E)31.4
Beta (1Y)1.35
Revenue Growth9.68%
EPS Growth-47.83%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength59
IndustryTravel Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding431,602,200
10 Day Avg. Volume6,270,265
30 Day Avg. Volume6,250,266
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.84
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.18
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$146.39Price Target Upside17.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering37
Airbnb Business Overview & Revenue Model
Company DescriptionAirbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company's marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, or vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.
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 Key Performance Indicators (KPIs)
Any
Gross Booking Value
Reflects the total dollar amount of all bookings on the platform, indicating the overall demand and popularity of Airbnb's offerings and its ability to capture market share in the travel industry.
Reflects the total dollar amount of all bookings on the platform, indicating the overall demand and popularity of Airbnb's offerings and its ability to capture market share in the travel industry.
Data provided by:
Main Street Data
Main Street DataAirbnb Financial Statement Overview
Summary
Airbnb demonstrates strong financial health with a robust income statement, solid balance sheet, and efficient cash flow management. The company shows impressive profitability and revenue growth, although there is room for improvement in equity growth and cash flow generation.Income Statement
Airbnb has shown robust performance in its income statement. The company's Gross Profit Margin is strong at 80.0% TTM (Trailing-Twelve-Months), indicating efficient cost management. The Net Profit Margin is also impressive at 22.6% TTM, highlighting profitability. Revenue has grown steadily, with a 13.6% increase from 2022 to 2023 and a further 12.1% increase in 2024. EBIT and EBITDA margins remain healthy, reinforcing Airbnb's solid earnings capability.85
Very Positive
Balance Sheet
Airbnb's balance sheet reflects a balanced financial position with a Debt-to-Equity Ratio of 0.25 TTM, suggesting manageable leverage. The Return on Equity (ROE) is excellent at 31.9% TTM, indicating effective use of equity capital. The Equity Ratio is 31.7% TTM, showcasing a stable asset base. However, there is room for improvement in equity growth to enhance financial stability further.78
Positive
Cash Flow
The cash flow statement is strong, with a positive Free Cash Flow of 4.4 billion TTM, showing effective cash generation. The Operating Cash Flow to Net Income Ratio is 1.73 TTM, indicating strong cash earnings. Free Cash Flow to Net Income Ratio is favorable at 1.73 TTM. However, the Free Cash Flow growth has slowed recently, suggesting potential areas for improvement in cash management.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
Negative
124.89
Price Trends
124.12
Negative
129.76
Negative
129.69
Negative
Market Momentum
0.59
Negative
50.84
Neutral
68.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABNB, the sentiment is Negative. The current price of 124.89 is above the 20-day moving average (MA) of 118.21, above the 50-day MA of 124.12, and below the 200-day MA of 129.69, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 68.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $169.30B | 32.37 | -146.32% | 0.69% | 9.47% | 20.70% | |
75 Outperform | $78.51B | 31.42 | 32.06% | ― | 9.68% | -47.83% | |
75 Outperform | $20.64B | 18.08 | 79.84% | 0.24% | 6.64% | 69.85% | |
75 Outperform | $12.35B | 53.17 | 23.09% | ― | 28.51% | 367.34% | |
69 Neutral | $40.06B | 17.47 | 12.91% | 0.47% | 18.12% | 69.44% | |
61 Neutral | $6.64B | 11.67 | 3.04% | 3.98% | 2.60% | -21.24% | |
60 Neutral | $1.68B | 771.52 | 0.55% | ― | 2.63% | -58.77% |
* Consumer Cyclical Sector Average
Performance Comparison
ABNB
Airbnb
121.67
-38.14
-23.87%
TCOM
Trip.com Group Sponsored ADR
60.49
8.03
15.31%
EXPE
Expedia
164.73
52.06
46.21%
MMYT
Makemytrip
113.21
41.40
57.65%
BKNG
Booking Holdings
5,162.37
1,586.83
44.38%
TRIP
TripAdvisor
12.76
-12.72
-49.92%
Airbnb Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 0.71%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Airbnb's strong global growth and financial performance, particularly in international markets. However, challenges in the US market and inbound travel to the US, along with expectations for moderated growth, indicate some areas of concern. The company remains optimistic about long-term growth and product expansions.Q1-2025 Updates
Positive Updates
Strong Start to 2025
Guests on Airbnb spent nearly $25 billion in Q1 2025, indicating robust demand despite global uncertainties.
Significant Booking Growth
143 million nights and experiences booked, up 8% year-over-year.
Revenue Increase
Revenue for Q1 was $2.3 billion, up 6% year-over-year. Excluding FX and calendar factors, revenue would have grown 11%.
Cash Flow and Stock Repurchase
Generated $1.8 billion of free cash flow in Q1. Repurchased $807 million of common stock with $2.5 billion remaining on repurchase authorization.
Expanding International Markets
Latin America and Asia Pacific saw significant growth, with Latin America growing in the low-20%s and Asia Pacific in the mid-teens.
Negative Updates
US Market Softness
US domestic travel showed softer trends, with economic uncertainty affecting long-term booking lead times.
Inbound Travel Decline
Decrease in foreign travelers to the US, impacting overall travel demand in the region.
Moderating Growth Expectations
Anticipated moderation in year-over-year growth for Q2 in nights and experiences booked.
Profitability Challenges
Adjusted EBITDA margin expected to be flat to slightly down in Q2 compared to the previous year.
Company Guidance
In the first quarter of 2025, Airbnb reported robust financial results, with guests spending nearly $25 billion on the platform. The company recorded 143 million nights and experiences booked, marking an 8% year-over-year increase. Latin America led regional growth with a low-20% rise, followed by Asia Pacific, Europe, and North America. Revenue reached $2.3 billion, up 6% from the previous year, and adjusted EBITDA was $417 million, representing an 18% margin. Free cash flow for the quarter was significant at $1.8 billion, contributing to a trailing 12-month figure of $4.4 billion and a 39% free cash flow margin. With $11.5 billion in corporate cash and investments, Airbnb repurchased $807 million of common stock and maintains a $2.5 billion authorization for further repurchases. Looking ahead to Q2, the company expects revenue between $2.99 billion and $3.05 billion, indicating a 9% to 11% growth, with an anticipated adjusted EBITDA margin at least 34.5% for the full year. Despite global economic volatility, Airbnb remains optimistic, supported by its adaptable business model and strategic investments in growth initiatives.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.