NASDAQ$ABNB

Airbnb Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Airbnb reported strong Q3 2023 results, marked by revenue growth, net income increase, and adjusted EBITDA improvement.

Airbnb's Q3 2023 demonstrated strong financial performance with revenue reaching $3.4 billion, a net income of $4.4 billion (including a one-time tax benefit), and adjusted EBITDA of $1.8 billion. Nights and Experiences Booked grew to 113.2 million, and Free Cash Flow was $1.3 billion. The company is closely monitoring macroeconomic trends and geopolitical conflicts that may impact travel demand.

  • Q3 revenue was $3.4 billion, up 18% year-over-year.
  • Net income was $4.4 billion, which included a $2.8 billion one-time, non-cash income tax benefit.
  • Adjusted EBITDA was $1.8 billion, up 26% year-over-year.
  • Free Cash Flow was $1.3 billion, up 37% year-over-year.

Headline financials

Total Revenue

$3.4B

Previous: $2.88B+17.8%
EPS (adj)

$6.63

Previous: $1.79+270.4%
Capital Expenditures

-$30M

Previous: -$16.6M-80.7%
Free Cash Flow

$4.34B

Previous: $1.2B+262.7%
Net Income

$4.37B

Previous: $1.21B+260.2%
Operating Income

$1.5B

Previous: $1.2B+24.3%
Gross Profit

$2.94B

Previous: $2.48B+18.3%
Cash & Equivalents

$8.18B

Previous: $7.52B+8.7%
Total Assets

$21.4B

Previous: $16.1B+33.4%
R&D Expense

$419M

No prior period

Revenue & EPS history

Airbnb · Revenue · Quarterly

$3.4B

Q3 2023+17.8%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

For Q4 2023, Airbnb expects revenue between $2.13 billion and $2.17 billion, representing year-over-year growth of 12% to 14%. They anticipate a slightly higher take rate compared to Q4 2022, moderating nights booked growth relative to Q3 2023, and stable to slightly up ADR. A record-high fourth quarter Adjusted EBITDA is expected, with an Adjusted EBITDA margin exceeding Q4 2022, leading to a full-year 2023 Adjusted EBITDA margin approximately 150 bps higher than full-year 2022.

Tailwinds

  • Revenue growth between 12% and 14% year-over-year is expected.
  • Implied take rate is anticipated to be slightly higher than Q4 2022.
  • ADR is expected to be stable to slightly up compared to the same period last year.
  • A record-high fourth quarter Adjusted EBITDA is expected in 2023 on a nominal basis.
  • Adjusted EBITDA margin for full-year 2023 is expected to be approximately 150 bps higher than full-year 2022.

Headwinds

  • Greater volatility early in Q4 is being observed.
  • Macroeconomic trends may impact travel demand.
  • Geopolitical conflicts may impact travel demand.
  • Nights booked growth in Q4 2023 is expected to moderate relative to Q3 2023.
  • The company is closely monitoring these factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.5%

Avg return

Earnings day

-1.5%

Avg return

5 days after

-2.1%

Avg return

30 days after

50%

11 / 22 earnings

Positive

+17.7%

Q4 2022

Best reaction

-11.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-5.7%-4.9%
Q4 2025+4.6%+7.2%+8.9%
Q3 2025-3.9%+1.0%+3.1%
Q2 2025-8.0%-6.8%-5.1%
Q1 2025+1.0%-0.7%+4.0%
Q4 2024+14.4%+12.0%-12.9%
Q3 2024-4.5%-5.5%-2.8%
Q2 2024-9.8%-8.2%-7.3%
Q1 2024-8.0%-6.7%-8.2%
Q4 2023-3.6%-0.8%+8.2%
Q3 2023-2.4%-0.1%+14.1%
Q2 2023-3.0%-3.5%-8.2%
Q1 2023-9.9%-16.2%-8.1%
Q4 2022+17.7%+13.0%+3.1%
Q3 2022-11.7%-10.1%-5.3%
Q2 2022+3.4%+5.3%+2.0%
Q1 2022+2.2%-11.1%-20.6%
Q4 2021+10.0%+3.1%-7.1%
Q3 2021+16.6%+12.6%-3.5%
Q2 2021+3.1%-2.9%+11.5%
Q1 2021+0.7%-3.7%+5.8%
Q4 2020+3.1%-5.1%-12.9%
Q3 2020
Q2 2020
Q1 2020
Q4 2019
Q3 2019

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