Airbnb had its black year in the pandemic. In 2020, revenues plummeted and the company suffered losses of 4,585 million dollars (about 4,300 million euros at current exchange rates). But since that fateful year it has reemerged with force and this Tuesday presented results with the first annual benefits in its history and optimistic forecasts. The shares of the tourist accommodation company have opened this Wednesday with a rise of more than 10%.
The firm founded in 2008 by Brian Chesky, Nathan Blecharczyk and Joe Gebbia achieved revenues of 8,399 million dollars in 2022, 40% more than the previous year and more than double that of 2020. Its operating result more than quadrupled, up to the 1,802 million dollars. Thanks to this, it went from losses of 352 million in 2021 to profits of 1,892 million last year, the first in a full year in its short history. Free cash flow was 3,405 million, with a growth of 49%.
The company successfully challenged the pandemic with an IPO at the end of 2020. Demand was so high that it raised the placement price to 68 euros, 44% of the initial reference. In addition, it skyrocketed on its stock market debut and exceeded 100,000 million dollars in market valuation. After the initial euphoria, the company had been on the stock market for a few months and the shares had fallen to less than half, to around $85 per share, at the end of last year, due to fears about the cooling of the economy. .
As explained by the company, the demand from travelers remained strong throughout 2022 and all regions experienced significant growth, as guests increasingly crossed borders and returned to the cities, their stronghold. Supply also grew strongly in 2022. Airbnb ended the year with 6.6 million active listings worldwide, which is more than 900,000 more listings than the platform had at the start of 2022 (not including China). “Growth has been driven by the platform’s global network where demand drives supply, as well as product innovations that continue to be a strong draw for new hosts,” the company states.
Although the distribution of the business has changed with the pandemic, Airbnb has seen constant growth in different areas. In the fourth quarter of last year, nights booked in high-density urban areas accounted for 51% of the total (compared to 59% in the fourth quarter of 2019, before the pandemic). For their part, cross-border reservations represented 44% (compared to 47% pre-pandemic).
Another factor that favors Airbnb is that guests continue the trend of staying longer. In Q4 2022, gross nights booked for more than a week are 40% higher than the same period in 2019.
The company also adjusted its costs in the year of the pandemic and reduced its workforce. Although in 2021 and 2022 it hired more employees, it closed last year with 6,811. That is, it has 5% fewer positions than in 2019 with 75% more income. “We expect to continue hiring at a prudent pace in 2023,” the company says.
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