Airbnb (ABNB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 10% year-over-year to $3.7 billion, driven by increased check-ins and a modest rise in ADR.

• Net income was $1.4 billion (37% margin), with a 69% decrease year-over-year due to a significant increase in income tax expense from the prior year's deferred tax asset valuation allowance release.

• Adjusted EBITDA for Q3 2024 was $2.0 billion, up 7% year-over-year.

• Free cash flow for the trailing 12 months reached $4.1 billion, with $1.1 billion in share repurchases this quarter.

• Strategic focus included mainstreaming hosting, perfecting core services, and expanding beyond core markets, with major product upgrades and the launch of the Co-Host Network.

Financial highlights

• Q3 2024 revenue: $3.7 billion (+10% YoY); net income: $1.4 billion (37% margin); adjusted EBITDA: $2.0 billion (52% margin).

• Free cash flow for the trailing 12 months was $4.1 billion (38% margin); Q3 2024 free cash flow was $1.1 billion (29% of revenue).

• Gross Booking Value Q3 2024: $20.1 billion (+10% YoY); Nights and Experiences Booked: 123 million (+8% YoY).

• 8.7 million shares repurchased for $1.1 billion in Q3; $4.2 billion remains authorized.

• Stock-based compensation for Q3 2024 was $362 million.

Outlook and guidance

• Anticipates acceleration in nights booked in Q4 relative to Q3, despite tougher year-over-year comps.

• Q4 EBITDA margin guidance implies compression to around 27-28%, mainly due to increased product development and marketing investments.

• Management expects continued growth in international markets, especially Asia Pacific and Latin America.

• Cash flows from operations expected to meet short-term requirements; $11.3 billion in liquidity as of September 30, 2024.

• New services launching in 2025 expected to drive incremental revenue, with investments front-running revenue realization.