Airbnb Inc (ABNB) Q3 2023 Earnings: Revenue Up 18% to $3.4 Billion, Net Income Soars to $4.4 Billion
Airbnb Inc (NASDAQ:ABNB) reports Q3 2023 revenue of $3.4 billion, an 18% increase from Q3 2022.
Net income for Q3 2023 stands at $4.4 billion, including a one-time income tax benefit of $2.8 billion.
Adjusted EBITDA of $1.8 billion, representing a 26% increase from Q3 2022.
Free Cash Flow for Q3 2023 was $1.3 billion, up 37% year-over-year.
Airbnb Inc (NASDAQ:ABNB) released its Q3 2023 earnings on November 1, 2023, reporting strong financial results driven by robust travel demand and disciplined cost management. The company's revenue for the quarter was $3.4 billion, marking an 18% increase from Q3 2022. This growth was primarily driven by strength in travel demand and a foreign exchange rate tailwind.
Financial Highlights
The company's net income for Q3 2023 was $4.4 billion, which included a one-time income tax benefit from the release of a valuation allowance of $2.8 billion on certain deferred tax assets. Excluding this, the Adjusted Net Income was $1.6 billion. The net income margin was 129% and Adjusted Net Income Margin was 47%.
Airbnb's Q3 Adjusted EBITDA of $1.8 billion represented a 26% increase from Q3 2022, demonstrating the continued strength of the business and discipline in managing the cost structure. The company generated $1.3 billion of both net cash provided by operating activities and Free Cash Flow (FCF) in Q3. The trailing twelve months (TTM) FCF was a record $4.2 billion.
Business Performance
Airbnb's strong quarter was driven by a number of positive business highlights. Nights and Experiences Booked grew 14% in Q3 2023 compared to a year ago. The company saw a sequential acceleration in the year-over-year growth rate of nights booked relative to Q2 2023, driven by increases in active bookers in each region.
The company's international expansion markets are gaining momentum. Cross-border nights booked grew by 17% in Q3 2023 compared to a year ago. As international travel continues to recover, Airbnb is building greater momentum in under-penetrated markets.
Looking Ahead
Airbnb is focused on making hosting as popular as traveling on its platform. The company's active listings grew 19% in Q3 2023 relative to Q3 2022, and it continued to see double-digit supply growth across all regions and market types. In Q3 alone, Airbnb Hosts earned more than $19 billion.
The company is also committed to improving its core service based on feedback from its community. Over the past year, it has launched more than 350 new features and upgrades to its core service, including improved customer service, total price display, and new tools to help Hosts set more competitive prices.
Explore the complete 8-K earnings release (here) from Airbnb Inc for further details.
This article first appeared on GuruFocus.
