ABNB Q4 2022 Earnings

Call Details

• Call Title: Airbnb, Inc. Q4 2022 Earnings Call
• Date: February 14, 2023 at 9:30 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 for full year 2022 was $8.4B, which grew 40% year-over-year and grew 46% year-over-year excluding foreign exchange.
• Net income for full year 2022 was $1.9B on a GAAP basis, marking Airbnb's first profitable full year on a GAAP basis.
• Free cash flow for full year 2022 was $3.4B, representing a free cash flow margin of over 40%.
• Q4 2022 net income was $319M, which was $264M higher than Q4 2021.
• Q4 2022 adjusted EBITDA was $506M, which was 52% higher than Q4 2021 on a reported basis.
• Q4 2022 free cash flow was $455M, which was 20% higher than Q4 2021.

Guidance

• Airbnb expects full-year 2023 adjusted EBITDA margins to be roughly the same as 2022, with anticipated ADR headwinds offset by efficiency gains and controlled fixed-cost growth.
• The company expects only modest headcount growth in 2023 in the 2%–4% range to maintain fixed-cost discipline while hiring selectively for priority initiatives.
• Airbnb forecasts a modest year-over-year decline in ADRs for 2023 driven largely by mix shifts toward urban and higher cross-border travel and region mix changes.
• Take rate is expected to be directionally similar to 1Q 2022 levels and has been generally stable on a time-adjusted basis.
• Marketing spend as a percentage of revenue for the full year 2023 is expected to be about the same as 2022, while some marketing timing will be shifted earlier into Q1 to support summer bookings.
• The company reiterated that it provides reconciliations for non-GAAP metrics to the most directly comparable GAAP measures in its shareholder letter.