ABNB Q1 2025 Earnings

Call Details

• Call Title: Airbnb, Inc. Q1 2025 Earnings Call
• Date: May 1, 2025 at 8:30 PM UTC
• Management Team:
  • Brian Chesky (Co-founder and CEO)
  • Ellie Mertz (Chief Financial Officer)

Call Summary

Financial Performance

• Guests on Airbnb spent nearly $25B in Q1 2025, reflecting continued gross booking scale for the platform.
• Nights and experiences booked were 143M in Q1, up 8% year-over-year.
• Revenue for Q1 was $2.3B, up 6% year-over-year and would have grown 11% excluding FX and calendar factors.
• Adjusted EBITDA for Q1 was $417M, representing an 18% adjusted EBITDA margin on a non-GAAP basis.
• Airbnb delivered $1.8B of free cash flow in Q1 and $4.4B over the trailing 12 months, representing a 39% free cash flow margin over the last 12 months.
• At quarter end, corporate cash and investments were $11.5B and funds held on behalf of guests were $9.2B.

Guidance

• Q2 2025 revenue is guided to $2.99B to $3.05B, representing 9% to 11% year-over-year growth.
• The Q2 guide includes approximately a 2 percentage-point benefit from the timing of Easter.
• Nights and experiences booked growth is expected to moderate in Q2 relative to Q1, with softer trends in the U.S. versus stronger demand in Europe and Latin America.
• Adjusted EBITDA is expected to increase year-over-year in Q2 while adjusted EBITDA margin is expected to be flat to slightly down versus Q2 2024.
• Marketing expense is expected to grow faster than revenue in Q2 due primarily to the May 13 summer release and growth investments.
• Full-year 2025 adjusted EBITDA margin is reiterated at at least 34.5%, which includes $200M to $250M of investment to launch and scale new businesses.
• The company stated that the new offerings launching May 13 will have a modest top-line impact in the near term and larger margin impact in the back half of the year as investments scale.