4 questions as Airbnb’s IPO looms

By | November 5, 2020

Virtually on command after we asked yesterday if a rash of expertise IPOs have been about to land, information broke that Airbnb plans to drop its S-1 filing early next week with a December roadshow. The doc will likely be of intense curiosity for shareholders — in addition to public traders who hope to buy shares within the home-sharing unicorn.

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Per Reuters, which broke the information of Airbnb’s impending public IPO submitting, the corporate intends to boost “round $3 billion” at a valuation that would high $30 billion.

The inventory market is rallying earlier than Airbnb’s public submitting, making it a very good time for the corporate to hunt a wealthy valuation for itself. However whereas Airbnb’s recovery from COVID-related lows may develop into a enterprise case of the ages, it’s not arduous to nonetheless have questions on what its S-1 will comprise.

We all know quite a bit about Airbnb’s previous few years, one thing TechCrunch lined here. However, to save lots of you tons of of phrases, let’s rapidly blast by way of a tough rundown of its previous few quarters. As soon as we get by way of that, we’ll ask 4 questions that, as soon as answered, will assist the market value Airbnb’s IPO.

Outcomes, questions

Operating again by way of Airbnb’s numbers with out additional dialog, right here’s the info in bullet-point format, with percentage-change figures evaluating year-over-year knowledge supplied when potential:

  • Q4 2019: Revenues of $1.1 billion (+32%), EBITDA of -$276.4 million (+92%).
  • Q1 2020: Revenues of $842 million, and an adjusted lack of $341 million.
  • Q2 2020: Revenues of $335 million, and an adjusted lack of $400 million.

Turning to newer occasions, we all know that Airbnb’s monetary efficiency improved in Q3, with data showing the corporate’s bookings bouncing again as summer time ran its course. And the corporate itself has made noise about native bookings (key to its rebound as of us stayed near dwelling throughout the pandemic), and whole nights booked

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