Airbnb, Inc. ($ABNB) Earnings (Q1 FY22)

 Airbnb, Inc. ($ABNB) Earnings and Opinion:


Airbnb is a company in the Consumer Cyclical sector and operates in the Travel Services industry. The company offers a platform that allows hosts to offer their places and experiences to guests all over the world. Airbnb was founded in 2007 and is headquartered in San Francisco, California. The company was first traded on the stock market in 2020. 

Airbnb EPS and Revenue (Q1 FY22):

  • EPS of -$0.01 beating expectations of -$0.24
  • Revenue of $1.51B beating expectations of $1.45B
Airbnb Q1 Financial Highlights:
  • Nights and Experiences Booked surpasses 100M for first time
  • Gross Booking Value of $17.2B, up 67% Y/Y
  • Revenue was up 70% Y/Y
  • Net loss of $19M, compared to $1.2B last year
  • Adjusted EBITDA of $229M
Opinion:
Airbnb is taking off after reporting earnings yesterday. Talk about a solid all around earnings report. The company is so close to profitability that it is intriguing. I think it is very achievable in the near future. The travel industry has seemed to pick up a little bit of steam with the easing of covid regulations. Airbnb is platform that leads the industry in what they do. Taking a look deeper into the financials, we can see that they beat expectations in both the EPS and revenue category. They were able to increase their revenues by 70% and they achieved the feat of nights and books experienced surpassing 100M. The P/S ratio is at a comfortable level, right at around 16 and the P/FCF price stands out a little bit more because it is higher. They currently do not have positive earnings, therefore a P/E ratio is not available at this time. To be fair, I really could see this company have a positive quarter as early as next year. They will guaranteed be profitable by at least the end of this fiscal year. The net loss is so close to breaking profitability and it has improved mightily on a Y/Y basis. I actually purchased into this company after they reported earnings. I feel really strong about this company and decided to put some money in it. Once they reach profitability, the sky is the limit for them. They already operate all over the world and practically have little marketing expenses, just because word of mouth has gotten them so far already. I would definitely get into this company as soon as you can, you won't regret it in 5 years.

*Information from Airbnb, MacroTrends, Google, Yahoo Finance

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