Quarter 3 Closes out, How did Airbnb Perform?
- Taylor
- Jul 15
- 2 min read
Key Financial Highlights
Revenue: $3.7 billion, a 10% year‑over‑year increase from $3.4 billion in Q3 2023 .
Net Income: $1.4 billion, with a net margin of 37%; this compares to $4.4 billion in Q3 2023, largely due to a one-time $2.8 billion tax benefit last year .
Adjusted EBITDA: $2.0 billion (up 7% YoY) with a 52% margin, down slightly from 54% in Q3 2023 .
Free Cash Flow: $1.1 billion for the quarter (29% margin), with a trailing 12‑month FCF of $4.1 billion (38%) .
Gross Booking Value: $20.1 billion, up 10% YoY, supported by an 8% increase in nights and experiences booked .
Operational & Strategic Momentum
Bookings Acceleration: Nights and experiences booked reached ~123 million (+8% YoY), with growth accelerating month-over-month, finishing the quarter in double digits ().
App Adoption: Mobile app bookings surged 18% YoY, now accounting for 58% of all nights booked .
Market Expansion: Expansion markets experienced booking growth more than double that of core regions .
Quality Control Initiatives:
Over 300,000 low-performing listings were removed, improving overall guest experience .
Launched Co‑Host Network to drive new host acquisition and simplify hosting .
Balance Sheet & Capital Return
Stock Buybacks: Repurchased $1.1 billion of Class A shares this quarter, reducing fully diluted shares from ~681 million to 665 million; $4.2 billion remains in the authorization .
Cash Reserves: Held approximately $11.3 billion in cash, cash equivalents, short‑term investments, and restricted cash as of September 30, 2024 .
Forward Outlook & Market Response
Booking Trends: The company expects Nights and Experiences booked to grow faster in Q4 than in Q3 .
Investor Reaction: While revenue exceeded expectations, earnings (EPS $2.13 vs. est. $2.14) and margin guidance were a mixed signal—Airbnb stock declined ~9% post-earnings compared to a rise at Expedia .
Strategic Vision: CEO Brian Chesky emphasizes investment in expanding offerings—“the next chapter” beyond accommodations—as they build on core strength .
Summary
Q3 2024 reinforced Airbnb’s resilience:
Double-digit revenue growth and robust profitability metrics.
Sustained cash generation enabling capital returns.
Strong engagement across app and booking channels.
Continued strategic investment in host expansion and listing quality.
While net income dropped year-over-year due to one-off tax items, the underlying business remains healthy. With expansion markets accelerating and Q4 forecast optimistic, Airbnb appears well-positioned for steady, measured growth.
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