ABNB Q3 2023 Earnings

Call Details

• Call Title: Airbnb, Inc. Q3 2023 Earnings Call
• Date: November 1, 2023 at 8:30 PM UTC
• Management Team:
  • Brian Chesky (Co-founder and CEO)
  • Dave Stephenson (Chief Financial Officer)
  • Ellie Mertz (VP of Finance)

Call Summary

Financial Performance

• Revenue was $3.4B, which grew 18% year over year.
• Net income was $4.4B, which includes a one-time income tax benefit of $2.8B from the release of a valuation allowance.
• Adjusted net income was $1.6B, representing an adjusted net income margin of 47%.
• Free cash flow for the quarter was $1.3B and trailing 12-month free cash flow was $4.2B, representing a 44% free cash flow margin.
• Nights and experiences booked totaled over 113M for the quarter.
• Nights and experiences booked grew 14% year over year in Q3.
• Cross-border nights booked increased 17% in Q3 year over year.

Guidance

• Revenue guidance for Q4 is between $2.13B and $2.17B, implying revenue growth of 12% to 14%.
• Q3 revenue growth excluding the impact of foreign exchange was about 14%.
• The company does not anticipate the same level of FX headwind in Q4 as in Q3.
• The company did not provide a specific nights guide for Q4 and stated that nights growth is expected to be a few points below Q3.
• The company described early-Q4 demand as exhibiting variability and characterized the outlook as cautious.
• No explicit visibility into 2024 bookings was provided and the company stated that it is too early to tell for 2024.