ABNB Q4 2023 Earnings

Call Details

• Call Title: Airbnb, Inc. Q4 2023 Earnings Call
• Date: February 13, 2024 9:30 PM UTC
• Management Team:
  • Brian Chesky (Co‑founder and Chief Executive Officer)
  • Dave Stephenson (Chief Business Officer)
  • Ellie Mertz (Chief Financial Officer (effective March 1, 2024))

Call Summary

Financial Performance

• Airbnb reported 99 million nights and experiences booked in Q4 2023, which the company called its highest fourth quarter ever.
• Q4 revenue was $2.2B, representing growth of 70% year over year on the reported basis.
• GAAP net loss for Q4 2023 was $349M and was reported alongside non‑GAAP metrics.
• Adjusted net income excluding non‑recurring tax items was $489M, representing an adjusted net income margin of 22% on a non‑GAAP basis.
• Full‑year 2023 free cash flow was $3.8B, described as the highest ever for the company.
• Trailing 12‑month pre‑cash flow was cited as $2.8B, representing a pre‑cash flow margin of 39% on a non‑GAAP basis.

Guidance

• The company expects Q1 2024 to face harder comps from January 2023 and described Q1 growth as moderating from Q4 levels.
• Airbnb stated that Easter timing shifts will help Q1 revenue by approximately 100 to 200 basis points while shifting some nights from Q1 into Q2.
• The company set a minimum four‑year EBITDA margin floor of 35%, which it described as slightly down from 2023 levels.
• Testing of a cross‑currency fee will begin in April 2024, and the firm estimated cross‑currency transactions are roughly 20% of gross booking value and expected fee changes to be close to 1% for affected transactions.
• Headcount is planned to grow in the low‑ to mid‑single digits year over year, which management said would be below overall revenue growth.
• Marketing as a percentage of revenue is expected to remain largely consistent with 2023 levels, with targeted expansion in up to 20 countries for brand efforts.