Today, the company Airbnb have reported a record fourth quarter, outperforming its previous revenue and net income benchmark. They are currently earning a lot more than expected.
According to the company, Airbnb’s revenue increased 24% year over year in Q4 to $1.9 billion, driven by an increase in stays and Experiences, Airbnb’s curated selection of tours and events.
Nights and experiences booked increased 20% year on year in Q4 2022, according to the company, while guests stayed at locations longer. Gross nights booked for more than a week by a profitable customer segment in Q4 2022 were 40% higher than in Q4 2019.
According to the company, cross-border trips increased 49% year on year in Q4 2022, with outbound travel from the Asia-Pacific region showing the most substantial growth globally as China lifted COVID-19 travel restrictions. Concurrent with the increase, total Airbnb listings increased to 6.6 million, the most ever, as the platform added 900,000 active listings year on year.
Another boon to Airbnb’s bottom line was the company’s decision to discontinue COVID-19-related refunds. Perks of hosts, as well as growth-oriented features like a toggle that shows the price of stays inclusive of fees, are likely to have contributed. While Airbnb stated last year that the impact of more transparent pricing was neutral, it expects a boost in the future as customers’ prices compare with hotels.
During today’s earnings call, Airbnb CEO Brian Chesky stated that the company is still focused on outbound business from China, which it sees as a large (albeit slow-growing) opportunity.
Airbnb generated $1.9 billion in net income in 2022, its first profitable full year. That’s a significant improvement from 2021 when the company lost $352 million. As of publication time, Airbnb stock was up about 5% on revenue forecasts for Q1 2023 of between $1.75 billion and $1.82 billion, which were higher than Wall Street’s expectations.