Airbnb's Loss Widens as IPO Costs Add to Pandemic Hit
February 25 2021 - 4:45PM
Dow Jones News
By Preetika Rana
Airbnb Inc. posted a steep fourth-quarter loss in its first
earnings as a public company, as costs tied to its market debut
capped a year in which the coronavirus pandemic ravaged the travel
industry.
The home-sharing company reported a $3.9 billion loss in the
three months through December, which included a charge of $2.8
billion for stock compensation tied to its initial public offering
during the quarter. That compared with a loss of $351 million in
the same period a year earlier. The latest loss brought the
company's full-year deficit to $4.6 billion, more than its losses
in the previous four years combined. The loss exceeded the average
forecast of analysts surveyed by FactSet.
Revenue exceeded Wall Street's expectations. Airbnb saw revenue
evaporate in the early months of the health crisis, but that
started to change as scores of people used the platform to plan
nearby trips in the summer. Fourth-quarter revenue fell 22%
year-over-year to $859 million. Full-year revenue fell 30% to $3.3
billion. Analysts polled by FactSet had expected fourth-quarter
revenue to decline 33% and full-year revenue to drop 32%.
Airbnb has been the bellwether of an otherwise battered travel
industry. Chief Executive Brian Chesky successfully pivoted the
company's strategy to focus on rural stays while hotels in big
cities suffered.
Write to Preetika Rana at preetika.rana@wsj.com
(END) Dow Jones Newswires
February 25, 2021 16:30 ET (21:30 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Airbnb (NASDAQ:ABNB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Airbnb (NASDAQ:ABNB)
Historical Stock Chart
From Sep 2023 to Sep 2024