Airbnb net loss covid19 pandemic millions revenue loss

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Pandemic hits Airbnb arduous as firm loses millions in revenue

Home-rental service Airbnb has mentioned its gross reserving revenue (GBV) has nosedived by 39 per cent to achieve 18 billion. The firm which filed for an preliminary public providing (IPO) on Monday, revealed that its enterprise will proceed to be affected as Covid-9 continues to unfold. Airbnb additionally mentioned it generated gross sales price $2.5 billion (down 32 per cent year-on-year) within the 9 months that ended on September 30.

Airbnb generated $1 billion of net money supplied by working actions and incurred $507 million of purchases of property and tools cumulatively from January 1, 2011 by December 31, 2019.

“We believe that we are still early in the global shift in consumer preferences toward one-of-a-kind stays and experiences, which provides an opportunity to further grow our community and business,” mentioned the corporate.

In 2019, Airbnb generated Gross Booking Value of $38 billion, representing progress of 29 per cent from $29.4 billion in 2018 — and revenue of $4.8 billion, representing progress of 32 per cent from $3.7 billion in 2018.

“COVID-19 has materially adversely affected our recent operating and financial results and is continuing to materially adversely impact our long-term operating and financial results,” the corporate admitted.

“However, we believe that as the world recovers from this pandemic, Airbnb will be a vital source of economic empowerment for millions of people”.

The firm has seen annual net losses yearly since its launch and mentioned it might not have the ability to obtain profitability.

“Our revenue growth rate has slowed, and we expect it to continue to slow in the future,” it mentioned within the submitting.

As of September 30, Airbnb had over 4 million hosts around the globe, with 86 per cent of hosts situated exterior of the United States.

“Our hosts had 7.4 million available listings of homes and experiences as of September 30, 2020, of which 5.6 million were active listings,” the corporate knowledgeable.

“Our hosts largely come to us organically with 79 per cent of our hosts coming directly to our platform to sign up to host in 2019. In 2019, we added more hosts than any year in our history with 23 per cent of our new hosts first starting out as guests on Airbnb,” it added.

In 2019, 54 million lively bookers worldwide booked 327 million nights and experiences on its platform.

Since its founding, there have been over 825 million visitor arrivals on Airbnb.

“We estimate our serviceable addressable market (SAM) today to be $1.5 trillion, including $1.2 trillion for short-term stays and $239 billion for experiences.

“We estimate our whole addressable market (TAM) to be $3.4 trillion, together with $1.8 trillion for short-term stays, $210 billion for long-term stays, and $1.4 trillion for experiences,” Airbnb informed.

(With IANS inputs)

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