Airbnb posts a $3.9 billion loss in its first report as public company.

Airbnb, which has faced sky-high expectations since Blockbuster Initial Public Offering In December, it reported a decline in revenue and a $ 3.9 billion loss in its first earnings on Thursday as a publicly traded company.

The home rental company brought in $ 859 million in revenue in the last three months of the year, up 22 percent from a year earlier. Its loss was driven by a cost of $ 2.8 billion with stock-based compensation related to its IPO, plus an accounting adjustment of $ 827 million for an emergency loan that was withdrawn for the epidemic season last year.

Airbnb tops the disadvantage Uber riding company Uber in first quarter As a public company and the new question about whether unprofitable tech start-ups can turn into a profit. Although most of the money-losing tech companies say they are spending money to promote rapid growth, AirBnB’s shrinking revenue makes that argument more difficult.

AirBNB presented its declining revenue as a volatility in travel over a year when travel came to a standstill due to an epidemic. Last spring, Airbnb lost $ 1 billion in bookings, Hired employees And raised emergency funds in response to lockdown and other restrictions. By summer, bookings were back, though not enough for a hole in revenue.

In December, the company went public and raised $ 3.5 billion, valuing it more than $ 100 billion. Since then, its valuation has risen to nearly $ 120 billion on investors’ expectations that a rapid vaccine rollout will bring a new boom in travel.

Even though the trip returns later this year, AirBnB faces challenges. Its hosts, who provide their listings as property listings, have become Increasingly frustrated With the company and seeking to list their rentals independently. Problems withParty houses“The epidemic worsened and the company implemented new regulations. And continues to regulators around the world To stare The “AirBnB effect” of converting housing stock into hotels in residential areas.

Source link

Leave a Comment