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Airbnb stock soars after posting first profitable full year

Autor: Financial Market
2 min

Airbnb, the platform that connects people who want to rent out their homes with people who are looking for accommodations, reported Q4 and full year financial results that were above analysts’ expectations.

2022 was another record year for Airbnb with total revenue of $8.4 billion growing 40% year over year while Net income was $1.9 billion—making 2022 the first profitable full year on a GAAP basis. Adjusted EBITDA was $2.9 billion and Free Cash Flow was $3.4 billion, growing 49% year over year.

Demand remained strong in all regions throughout 2022, as guests increasingly crossed borders and returned to cities on Airbnb. Supply growth was also strong as the company ended the year with 6.6 million global active listings, which is over 900,000 more listings than at the beginning of the year, excluding China.


Q4 and Full-Year 2022 Financial Highlights

Q4 revenue of $1.9 billion was the highest fourth quarter ever. Revenue grew 24% year-over-year driven by solid growth in Nights and Experiences Booked. For the full year 2022, revenue increased 40% year-over-year to $8.4 billion driven by the increase in demand and Average Daily Rates (“ADR”).
Q4 net income of $319 million was the most profitable fourth quarter ever. Net income improved by $264 million compared to Q4 2021 primarily due to revenue growth and expense discipline.
• In Q4 2022, the company delivered a net income margin of 17%, up from 4% in Q4 2021. For the full year 2022, net income was $1.9 billion, compared to a net loss of $352 million for the full year 2021.
Q4 Adjusted EBITDA of $506 million was a record fourth quarter. Adjusted EBITDA in Q4 2022 increased 52% compared to $333 million in Q4 2021. Adjusted EBITDA margin was 27% for Q4 2022, up from 22% in Q4 2021. For the full year 2022, Adjusted EBITDA margin was 35%, compared with 27% for full year 2021.
Q4 Free Cash Flow of $455 million was the highest Q4 ever. Q4 2022 net cash provided by operating activities was $463 million, up from $382 million in Q4 2021. The increase in cash flow was driven by revenue growth and net margin expansion.

FCF for full year 2022 was $3.4 billion, representing a FCF margin of 41%, and year-over-year growth of 49%.

Airbnb repurchased $1.5 billion of common stocks and reduced fully diluted share count from 703 million at the end of 2021 to 694 million at the end of 2022.

Business Highlights

Guest demand on Airbnb remained strong. Nights and Experiences Booked increased 20% in Q4 2022 compared to a year ago. In Q4 2022, the company had the highest number of active bookers yet compared to a year ago.
Guests increasingly returned to cities and crossed borders. Cross-border gross nights booked increased 49%, while high-density urban nights booked grew 22% compared to Q4 2021. While the business mix remains different from pre-pandemic levels, there is a consistent growth in both areas.
Guests continued to stay longer on Airbnb. Gross nights booked in Q4 2022 for more than a week are 40% higher than Q4 2019. Nights from long-term stays (28 nights or longer) remained stable from a year ago at 21% of total gross nights booked.
Supply on Airbnb grew by over 900,000 active listings. Company ended 2022 with 6.6 million active listings. This was an increase of over 900,000 active listings, or 16% compared to 2021, excluding the removal of all mainland China listings in July 2022 based on the decision to close the domestic business in China.

Financial statement link.