ABNB Q1 2024 Earnings

Call Details

• Call Title: Airbnb, Inc. Q1 2024 Earnings Call
• Date: May 8, 2024 at 8:30 PM UTC
• Management Team:
  • Angela Yang (Director of Investor Relations)
  • Brian Chesky (Co-founder and CEO)
  • Ellie Mertz (Chief Financial Officer)

Call Summary

Financial Performance

• Airbnb reported 133 million nights and experiences booked in Q1, marking the company's highest first quarter ever.
• Revenue was $2.1B, representing year-over-year growth of 18%.
• Net income was $264M, which equated to a net income margin of 12% for the quarter.
• Q1 free cash flow was $1.9B, noted as the company's highest ever for a quarter.
• Trailing 12-month free cash flow was $4.2B, representing a free cash flow margin of 41%.
• Adjusted EBITDA and net income were both described as Q1 records in the prepared remarks.
• Nights and experiences booked increased 9.5% year-over-year for the quarter.
• Mobile nights booked in the app increased 21% year-over-year and represented 54% of nights booked in the quarter, up from 49% a year ago.

Guidance

• Q2 guidance reflects flat room night growth versus the prior year, consistent with the company outlook referenced earlier in the year.
• Q2 margin guidance is softer due to a reversal of Easter timing benefits that aided Q1.
• Ellie cited the nonrecurrence of certain payment processing credits from the prior year as a Q2 margin headwind.
• Marketing spend was shifted modestly heavier into Q2, which the company said will increase marketing as a percent of revenue in the quarter.
• The company reaffirmed a full-year EBITDA margin floor of 35% while reserving flexibility to invest incrementally where ROI supports growth.
• Leadership stated that Q3 backlog is strong and that Q3 revenue is expected to accelerate above the Q2 outlook.