Airbnb Inc · Q2 2023 earnings

Briefing

Airbnb reported strong Q2 2023 results with significant growth in revenue, net income, and free cash flow.

Airbnb's Q2 2023 results showed significant growth, with revenue increasing by 18% year-over-year to $2.5 billion, net income rising by 72% to $650 million, and free cash flow growing by 13% to $900 million. Nights and Experiences Booked exceeded 115 million, marking a record second quarter for the company.

• Revenue reached $2.5 billion, an 18% increase year-over-year (19% ex-FX), driven by growth in Nights and Experiences Booked and stable Average Daily Rate (ADR).
• Net income was $650 million, a 72% increase year-over-year, with a net income margin of 26%, the highest second quarter ever.
• Adjusted EBITDA increased to $819 million, up 15% year-over-year, demonstrating continued strength and cost discipline.
• Free Cash Flow grew to $900 million, a 13% increase year-over-year, driven by revenue and bookings growth, as well as net margin expansion.

Headline financials

Revenue & EPS history

For Q3 2023, Airbnb expects revenue between $3.3 billion and $3.4 billion, representing year-over-year growth of 14% to 18%. They also anticipate a higher implied take rate and a modest sequential increase in the year-over-year growth rate of Nights and Experiences Booked. A record-high Adjusted EBITDA is expected, with an Adjusted EBITDA margin exceeding Q3 2022. For the full-year 2023, they expect an Adjusted EBITDA margin that is modestly higher than the full-year 2022.