Airbnb, which has confronted sky-high expectations since its blockbuster preliminary public providing in December, posted declining income and a whopping $3.9 billion loss on Thursday in its first earnings as a publicly traded firm.
The house rental firm introduced in $859 million in income within the final three months of the 12 months, down 22 % from a 12 months earlier. Its loss was pushed by $2.8 billion in prices related with stock-based compensation associated to its I.P.O., in addition to an $827 million accounting adjustment for an emergency mortgage it took out final 12 months to climate the pandemic.
Airbnb’s loss topped that of ride-hailing firm Uber in its first quarter as a public firm and renewed questions on whether or not unprofitable tech start-ups can flip a revenue. Although most money-losing tech firms say that they’re spending cash to gas quick progress, Airbnb’s shrinking income makes that argument a more durable promote.
Airbnb offered its declining income as a present of resilience in a 12 months when journey got here to a standstill due to the pandemic. Last spring, Airbnb misplaced $1 billion in bookings, laid off workers and raised emergency funding in response to lockdowns and other restrictions. By the summer season, bookings had bounced again, although not sufficient to make up for the opening in income.
In December, the corporate went public and raised $3.5 billion, valuing it at greater than $100 billion. Since then, its valuation has risen to just about $120 billion on investor expectations that a quick vaccine rollout would spur a new increase in journey.
Even if journey bounces again later this 12 months, Airbnb faces challenges. Its hosts, who present its stock within the type of property listings, have change into more and more annoyed with the corporate and are in search of to checklist their leases independently. Its issues with “party houses” worsened within the pandemic and the corporate has rushed out new guidelines. And regulators around the globe proceed to scrutinize the “Airbnb effect” of turning housing inventory in residential areas into lodges.