These are extremely attractive traits investors should love about the company. In addition, Airbnb has already proven that its platform-like business model scales extremely well in a profitable manner. Moreover, the growing popularity of remote work is a tailwind that could boost the company for many years to come. It's strikingly clear that Airbnb is firing on all cylinders, benefiting from a resurgence in travel demand. 31) is a good position for the business to be in from a balance sheet perspective. What's more, having $7.4 billion of cash and cash equivalents and just $2 billion of long-term debt (as of Dec. This is possible because the company's capital expenditures, as measured by purchases of property and equipment, were just $25 million in 2022. And for the full year, Airbnb was able to produce $3.4 billion of positive FCF, an incredibly encouraging sign for investors. In addition to strong profit growth, free cash flow (FCF) soared 21% in Q4 (compared to Q4 2021) to total $455 million. Becoming more optimized and efficient is a very favorable trend for this business. And the company's operating margin expanded from 10.4% in 2019 to 21.5% last year. 31, Airbnb had 5% fewer employees than it did at the end of 2019 despite 75% higher revenue. This is a much leaner organization nowadays, helping to bolster that bottom-line figure. And in Q4, net income of $319 million was up 480% year over year. 2022 was the first profitable year for the company. In Airbnb's case, there seems to be nothing to worry about in this regard. Owning these types of stocks might have worked in the past, but with macroeconomic uncertainty being the main topic of conversation, investors are starting to crave positive net income now. Companies invest heavily to pursue growth at all costs, and they try to convince shareholders that at some point in the future, whenever that may be, profitability will be met. Investors might assume that a business growing as rapidly as Airbnb might be many years away from achieving positive net income.
Consumer confidence to travel remains really high." "And looking forward, we're already seeing some really strong demand in Q1," CEO Brian Chesky mentioned on the Q4 2022 earnings call. This was Airbnb's strength prior to the pandemic. During 2022, 393.7 million nights and experiences were booked on the platform for a total GBV of $63.2 billion.ĭemand is clearly robust right now, boosted by travelers visiting major cities again, with cross-border travel also surging. Two of the company's key business metrics, which are nights and experiences booked and gross booking value (GBV), also registered wonderful gains. For the full year, sales were up 40% following a 77% jump in 2021. 31), Airbnb generated $1.9 billion of revenue, good for a year-over-year increase of 24%. In the most recent quarter (the fourth quarter of 2022 ended Dec.
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