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Highlights
- Revenue Growth: Q4 2024 revenue rose to $2.5 billion, up 12% year-over-year, driven by increased nights stayed and a modest rise in Average Daily Rate (ADR).
- Profitability Surge: Net income for Q4 reached $461 million, reversing a $349 million loss in Q4 2023. Adjusted EBITDA increased to $765 million.
- Aggressive Share Buybacks: Airbnb repurchased $838 million in Class A stock in Q4, totaling $3.4 billion for the year, reducing its diluted share count.
Airbnb, Inc. (NASDAQ:ABNB) has announced its fourth-quarter and full-year 2024 financial results, highlighting revenue growth, rising profitability, and significant share repurchases. The company continues to benefit from increased travel demand, efficient cost management, and a disciplined financial strategy.
Q4 2024 Performance: Growth Across Key Metrics
Airbnb generated $2.5 billion in revenue for Q4 2024, marking a 12% year-over-year (YoY) increase from $2.2 billion in Q4 2023. This growth was primarily driven by an increase in nights booked and a modest rise in the Average Daily Rate (ADR).
Net income surged to $461 million, achieving a 19% net income margin. This is a stark turnaround from Q4 2023, when the company posted a $349 million net loss due to non-recurring tax withholding expenses and lodging tax reserves totaling approximately $1 billion.
The company’s Adjusted EBITDA also grew, reaching $765 million in Q4, a 4% increase from the previous year’s $738 million. However, Adjusted EBITDA margin slightly declined to 31% from 33% in Q4 2023, reflecting changes in cost structure.
Airbnb’s Free Cash Flow (FCF) for the quarter was $458 million, with an FCF margin of 18%. The company’s net cash from operating activities saw a significant jump to $466 million, compared to just $63 million in Q4 2023, which was impacted by non-recurring tax items.
Full-Year 2024: Cash Flow and Shareholder Returns
For the full year, Airbnb reported $4.5 billion in Free Cash Flow, representing a 40% FCF margin—demonstrating its financial health and ability to generate cash.
The company aggressively repurchased shares throughout 2024, spending $3.4 billion on stock buybacks. In Q4 alone, Airbnb repurchased $838 million worth of Class A common stock. As a result, its fully diluted share count declined from 676 million at the end of 2023 to 658 million by the end of 2024. Airbnb still has $3.3 billion available under its current share repurchase authorization, signaling continued shareholder value initiatives.
