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Airbnb $ABNB Q1 2023 Earnings Analysis
Revenue: $1.82 billion +20% YoY
Gross Profit: $1.39 billion +21% YoY
Net Income: $117 million vs -$19 million YoY
Nights & Experiences Booked: 121.1 million +19% YoY
- another quarterly record but growth still slowing sequentially
Gross Booking Value: $20.4 billion +19% YoY
Total Active Listings grew 18% YoY
Free Cash Flow: $1.58 billion +32% YoY
- Q1 benefits from unearned fees due to seasonailtiy
Trailing Twelve Month FCF is $3.79 billion giving a FCF margin of 44%. This is INCREDIBLE!
Name another companying growing +20% and still generating this much of cash?
Q2 2023 Guidance
Revenue: $2.35-$2.45 billion +12%-16% YoY
Nights & Experiences growth to be lower than revenue growth
Overall
Strong quarter from $ABNB
Sell-off after hours due to lower than expected growth in nights & experiences booked which has trended downwards for 4 quarters in a row
This does not impact the long-term thesis in my view, the business continues to grow
Agreed. If anything I’m buying on weakness. They are a cash flow generating machine. The reaction to the guide is madness.
What about their pull forward in marketing and ad spend? It makes me wonder what they see in the forecast that management is prioritizing this. I think this was part of the reason behind the stock's drop.
In Q2 2023, we expect Adjusted EBITDA to be similar to Adjusted EBITDA in Q2 2022 on a nominal basis, but lower on a margin basis. This anticipated year-over-year decline in Adjusted EBITDA margin is primarily driven by changes in the expected timing of our marketing spend relative to the prior year. Compared to Q2 2022, we expect that Sales and Marketing expense in Q2 2023 will be approximately 400 basis points higher as a percent of revenue as we deploy marketing earlier in the year than last year. In 2023, we have pulled forward the timing of marketing spend to be more heavily weighted in the first half of the year as compared to 2022. In addition, we are increasing our brand marketing investment in more countries around the world. We believe spending earlier in the year helps to support the peak summer travel season.
The conference call is one of the best I listed to in a while. Chesky is a superior CEO. Knows exactly where he is steering the ship, and also his take on AI is aces. Highly recommend people listen to the call.
@rihardjarc His vision is what stands out for me. He has also shown how adaptable he is in the face of adversity by how he handled Covid and turned the company into a better business in the process
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