Airbnb becomes a public company
Joins many technology companies that have made their IPO this year.
Airbnb is ready to launch an initial public offering of its shares before the end of the year. The shares will be trading on the Nasdaq under the symbol ABNB.
When filing an S-1 declaration with the US Securities and Exchange Commission, the start-up rental company revealed that its revenues had shrunk by 18% compared to the previous year. The company managed to make a profit of $ 219.3. Airbnb reported revenue for 2019 of $ 4.8 billion and $ 3.7 billion in 2018, an increase of 32% over the previous year. The company warned that the decline in adjusted EBITDA and free cash flow could continue.
According to Yahoo Finance, Airbnb, founded in August 2008, joins a group of companies that go public in a year marked by the turmoil and uncertainty created by Covid-19. Nevertheless, the market for initial public offerings (IPOs) in the United States is hot, with 232 companies applying for public trading, which is 19% growth over the previous year, according to Renaissance Capital. Big names like Palantir (PLTR), Asana (ASAN), Snowflake (SNOW), Unity Software (U) debuted this year, and DoorDash, Wish, and Roblox could go public before the New Year.
In the first few months of the pandemic, Airbnb saw a sharp drop in bookings and revenue, prompting them to cut a quarter of their staff in May. As tourism around the world disappears due to the virus, Airbnb’s bookings have collapsed by 70% compared to a year earlier.
In early July, however, there was a recovery, with the company registering one million booked nights for one day – something that had not happened since early March. More and more travelers choose to stay closer to their homes, selecting short trips or long-term rentals – mainly about 500 km from home. This development was a boon to Airbnb’s core business.
With four million hosts and 7.4 million ads in 100,000 cities worldwide, Airbnb is mostly back, thanks to increased local travel. Before Covid-19, Airbnb researched various experiences, flights, and potential media brands and made more significant investments to win business travelers.
With many additional travel restrictions, the company is again focusing on its original audience – the leisure user.