AUS
NZ
UK
CA
USA
IND
Highlights
- Airbnb’s fiscal 2021 revenue soared 77% YoY to US$5.99 billion.
- Its gross booking value (GBV) increased by 96% YoY to US$46.9 billion in FY2021.
- Airbnb’s gross booking value (GBV) rose by 91% YoY to US$11.3 billion in the fourth quarter.
The Airbnb, Inc. (ABNB) stock was up over 3% in the premarket on Wednesday after the vacation company provided better-than-expected first-quarter guidance for fiscal 2022.
The stock was up 3.40% to US$186.19 at 7:34 am ET.
Airbnb posted a fiscal 2021 revenue of US$5.99 billion, 77% YoY, in the extended trading hours of Wednesday. It was 25% higher than the revenue in the pre-pandemic 2019.
Airbnb’s revenue has constantly increased over the last five years. Its operating income rose to US$429.3 million in FY21 from the operating loss of US$3.62 billion in the previous fiscal.
Its net loss reduced to US$352 million or US$0.57 per share diluted in FY 2021 compared to the net loss of US$4,584 million or US$7.54 per share diluted in fiscal 2020.
Airbnb now expects revenue of around US$1.48 billion in the first quarter, above expectations.
Also Read: Moneygram (MGI) stock soars on US$1.8 bn purchase offer by Madison
Airbnb bookings
Airbnb’s gross booking value (GBV) increased by 91% YoY to US$11.3 billion in the fourth quarter, while the fiscal 2021 GBV rose 96% YoY to US$46.9 billion.
Its GBV was up 23% from the pre-covid year of 2019.
Airbnb’s bookings for 28-day stays or more saw a 22% jump in Q4, up from 16% in the same quarter in 2019. Almost 50% of its bookings were for one week or more in the quarter.
Also Read: Intel Corporation (INTC) acquires Tower (TSEM) for US$5.4 billion
Also Read: S&P 500’s top oil and gas stocks to watch as prices shoot up
Best annual performance
Airbnb CEO Brian Chesky described the results for revenue and gross bookings as the “best year in the company’s history”.
Based in San Francisco, California, Airbnb was established in 2008 and went public in December 2020. It is among the world's leading vacation-home rental companies today.
In 2021, Airbnb advocated against hotel stays due to covid. It focused on educating about Airbnb’s safe housing practices, simplifying guest journeys, and delivering world-class service.
It has enhanced the guest experience, leading to increased revenues.
Also Read: From RIVN to TSLA: top 7 to watch as EV stocks brave global selloff
The company redesigned its website and app to offer suitable stay options in the pandemic besides luxury hotels. It reduced staff and marketing expenditure to keep expenses low. Airbnb also launched a search feature for travellers who aren’t sure when and where to travel.
Also Read: Virgin Galactic (SPCE) stock soars 30% on ticket sales for space trip
Keeping the marketing and other fixed costs low, the company believes, will help face the competition. The company said it would instead use the fund to strengthen its branding.
Chesky said he would stay at different Airbnb properties to review the services firsthand every few weeks. ABNB has a current market capitalization of US$107 billion.
Also Read: Resonant (RESN) faces probe after stock rallies 248% on Murata’s bid
Bottomline
Analysts say the vacation rental company would face increased competition from companies like Expedia Group Inc, Booking Holdings Inc., etc., as the travel industry returns to normalcy from covid disruptions. But Airbnb believes its work culture honed during the pandemic, flexibility, and remote work opportunities would give the company an edge.
The Airbnb stock closed 6.14% higher to US$180.07 on February 15.
