Airbnb S-1 IPO Filing Drop


Airbnb on Monday released its prospectus to debut in public markets. The company allows users to book short-term rentals and experiences while traveling.

The company reported net income of $ 219 million on revenue of $ 1.34 billion in the previous quarter. It was down about 19% from $ 1.65 billion in revenue a year earlier. Despite primarily turning net losses, the company has found other occasional quarters of profitability, including the second and third quarters of 2018 and the third quarter of 2019.

The company said it planned to trade on the Nasdaq under the symbol “ABNB”.

The company stated in its prospectus summary, “Our guests are not transacting – they are engaged, contributing members of our community.” “Once they become part of AirBnB, guests actively participate in our community, return regularly to our platform to book again, and recommend AirBnB to others, who then Connect with themselves. This demand encourages new hosts to join, which in turn attracts even more guests. It’s a virtuous cycle – guests attract hosts, and hosts attract guests . “

The company reported a net loss of $ 674 million on revenue of $ 4.81 billion in 2019. Thus by 2020, the company has incurred a net loss of approximately $ 697 million on revenue of $ 2.52 billion. The decline is likely due to the effects of coronaviruses, which put a break on leisure and business travel earlier this year.

“The impact of actions to mitigate the Kovid-19 epidemic and the Kovid-19 epidemic have materially adversely affected us and will materially adversely affect our business, results of operations and financial condition,” the company said Its first listed as a risk factor.

AirBnB has put an end to a difficult 2020. During Coronovirus’s worldwide travel, the company raised $ 2 billion in new debt financing at a valuation of $ 18 billion and announced major cost-cutting initiatives, including plans to retain 25% of its workforce, Or about 1,900 employees. The company also reduced marketing costs and incurred billions of dollars of debt.

According to a November 5 report by the American Travel Association, the coronavirus virus epidemic has lost an estimated $ 443 billion in revenue since the beginning of March.

However, AirBnB rebounded after a rental boom in rural areas where residents had fled the cities spreading the epidemic. The company said in its prospectus that the rebound began within two months of the epidemic.

“In early 2020, as Kovid-19 disrupted travel around the world, AirBnB’s business declined significantly,” the company wrote. “But within two months, our business model started to show its reputation even with limited international travel. People wanted to get out of their homes and yearn to travel, but they didn’t want to go far And neither wanted to go to the crowded hotel lobby. Domestic travel caused a rapid rebound on AirBNB around the world as millions of guests traveled closer to home. Work began for more than a few days as airbnb started from home Work is done in any household. We believe that the lines between travel and living are getting blurred, and the global epidemic has accelerated the ability to live anywhere. Our platform serves these new ways of travel Has proved favorable to do. “

Airbnb said its listings have declined and may continue to decline in part due to the epidemic. In particular, some people rely on AirBnB to help them make living expenses or mortgage payments, and those people may be knocked off the stage.

“It is not yet clear whether these travel losses during the Kovid-19 epidemic will have a financial impact on these individuals, or whether they will be able to keep their homes or conduct their business as they begin the journey, “The company has written to its risk. Factors. “Our business, results of operations, and financial condition may be adversely affected if our hosts are unable to return to normal operations in the near term.”

Unusually, the company has a stakeholder committee on its board of directors, whose mission is to consider the interests of “key stakeholders” including guests, hosts, communities and employees. The notion of “stakeholder capitalism” has gained some ground in recent years.

The company has eliminated a number of issues with its host since a extinction circumstances policy was implemented in March, which overrides the host’s cancellation policies and a full refund to guests affected by the coronavirus virus epidemic Claims to offer.

Later, Airbnb announced it would set up a $ 250 million coronavirus relief fund for the host, returning 25% of what they would normally receive under their cancellation policies, but those talking with CNBC Many hosts complained that they were not getting the right or no payment. Absolutely.

In November, the company was hit with a class-action lawsuit proposed by one of its hosts, alleging that the tech company breached its contract with the hosts when it implemented a fading conditions policy .

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