Study of ABNB

Study of ABNB

• 12/10/2020 – love this guy, great CEO. He is very focused on business, instead of focusing on stock price. His company passed two great tests in 2008 and 2020> the future looks very bright.

CEO Brian Chesky on Airbnb’s road to becoming 2020’s biggest IPO
Looking ahead, Chesky plans to avoid the daily ups and downs of Airbnb’s stock price and focus on the customer experience.

Chesky added that he will try to avoid concerning himself with the daily ups and downs of the company’s stock price and focus on what he can control.

“Of course, this price will go up. It will go down,” Chesky said. “But I tell our company to focus on the things we can control and we can’t control the stock price. So trying to focus on something that you can’t control is not super productive. But what we can control is to make sure that, like, when people come to me, they have an amazing experience. And so I want our company just completely focused on that problem, making sure we take care of our stakeholders.”

• 11/17/2020 – need to read airbnb’s prospectus

1. airbnb’s IPO filing reveals Q3 revenue drop, $219M profit

   1. Airbnb (AIRB) reveals its IPO prospectus with the expected Y/Y Q3 decline in revenue and a profit, despite the pandemic’s pressures.
   2. The company plans to trade on the Nasdaq under the “ABNB” ticker. Airbnb says it is seeking up to $1B in the listing, which could be a placeholder figure. Share count and pricing will come in a later update.
   3. Revenue was up 32% Y/Y to $4.8B in 2019. For the first nine months of 2020, revenue dropped 32% to $2.5B. Net loss for 2019 was $674M and totaled $697M for the first nine months of this year.
   4. Last quarter, revenue totaled $1.34B (-19% Y/Y) with net income of $219M.
   5. Nights and experience bookings increased 31% in 2019 to 250.3M. In the nine months ending September 30, 2020, bookings 41% to 146.9M.
   6. Gross booking value (includes bookings, host earnings, service fees, cleaning fees, and taxes, net of cancellations and alterations) rose 29% in 2019 to nearly $38B. In the first nine months of 2020, GBV dropped 39% to nearly $18B.
   7. Adjusted EBITDA dropped from $170.6M in 2018 to a loss of $253.3M in 2019. For the nine month periods, Airbnb reports positive $23.1M in 2019 anda $230.2M loss this year.
   8. The listing includes Class A shares, but the company has four classes total. Class A shares have one vote each, Class B have 20, Class C carry zero votes, and Class H have no votes but can convert to Class A shares

   |Yesterday, 5:02 PM | 30 Comments
2. AIRB
   Airbnb’s adjusted EBITDA improved in Q3, revenue declined – The Information

   1. Airbnb’s (AIRB) adjusted EBITDA increased to $500M in Q2 compared to $300M in last year’s quarter, according to The Information sources.
   2. The gains followed cost-cutting efforts early in the pandemic as bookings plunged.
   3. Q3 revenue is still expected to show a decline on the year with the pandemic undoing the typically strong seasonality of the quarter.
   4. Airbnb is expected to release its full IPO prospectus later today.
   5. The Information’s sources say the prospectus will include the fact that some employees will have the right to sell shares within a few days of going public, rather than waiting for the six-month lockup period.
   6. Previously: Airbnb delays IPO document release until next week – Bloomberg (Nov. 10 2020)

11/11/2020 – it is interesting to see the prospect this week, and wait for IPO next Monday

Why Investors Won’t Get to See Airbnb’s IPO Filing Until Next Week

The long-awaited initial public offering from Airbnb isn’t delayed, but a chance to see the prospectus has been pushed back.

Airbnb plans to make public the regulatory filing for its IPO next week, Barron’s has learned. The home-sharing platform had been expected to make its prospectus available this week. The Airbnb offering, which is expected to be one of the year’s biggest, is still slated for December.

11/10/2020 – can we get a good deal on ipo price because its revenue is 70% down?

Airbnb Said to Delay IPO Filing to Distance It From Election

Airbnb is planning to raise as much as $3 billion in a Nasdaq debut, Bloomberg News has reported. That would make it one of the largest IPOs on a New York exchange this year.

Companies, including special purpose acquisition vehicles, have raised $140 billion through first-time share sales in the U.S. this year, making 2020 a record for fundraising, data compiled by Bloomberg shows.

This year as the coronavirus pandemic shut down global travel, Airbnb saw its bookings plummet and revenue tumble. The company cut a quarter of its staff in May with reservations down 70% from a year earlier.

Airbnb bounced back faster than expected over the summer. In June, bookings were down only 30% compared with the same month in 2019. The surge in demand was driven by travelers seeking nearby vacation rentals to escape shuttered cities and take advantage of remote work policies.