Overview of Airbnb (ABNB) 3rd quarter 2021 earnings report
Category: AirBnb (ABNB)
Date: 8 November 2021 Stock price of AirBnb: $201.62 Market Capital of AirBnb: $126.7 billion We take a look at the 3rd quarter 2021 earnings report of Airbnb (ABNB) an accommodation reservation firm that lets people rent out their homes and properties to potential guests. Since its start in 2007 it has since grown to 4 million Hosts who have welcomed more than 1 billion guest arrivals across over 220 countries and regions.
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The world is undergoing a revolution in how we live and work. Technologies like Zoom make it possible to work from home. Airbnb makes it possible to work from any home. This newfound flexibility is bringing about a revolution in how we travel. Millions of people can now take more frequent trips, take longer trips, travel to more locations, and even live anywhere on Airbnb. "
More About AirBnb
Airbnb was born in 2007 when two Hosts welcomed three guests to their San Francisco home. It has since grown to 4 million Hosts who have welcomed more than 1 billion guest arrivals across over 220 countries and regions. Every day, Hosts offer unique stays and one-of-a-kind activities that make it possible for guests to experience the world in a more authentic, connected way.
Overview ofAirBnb's 3rd quarter 2021 earnings report
• Q3 revenue of $2.2 billion was our highest ever—36% higher than Q3 2019. It also exceeded Q3 2020 revenue of $1.3 billion by nearly 70% year-over-year. More significantly, year-over-two-year revenue growth more than tripled from 10% in Q2 2021 to 36% in Q3 2021. The sequential acceleration reflects continued strength in North America, EMEA and Latin America, as well as high ADRs. Q3 is typically our largest quarter due to summer travel peak.
• Q3 net income of $834 million was our most profitable quarter ever, nearly 4x larger than a year ago. Net income in Q3 2021 improved $615 million (280%) compared to Q3 2020 and $567 million (213%) compared to Q3 2019 due to our significant revenue recovery and our continued expense discipline.
• Q3 Adjusted EBITDA exceeded $1 billion for the first time ever. Adjusted EBITDA in Q3 2021 of $1.1 billion was also our highest ever, doubling from $501 million in Q3 2020 and more than tripling from $314 million in Q3 2019. Adjusted EBITDA margin was 49% for Q3 2021, by far our best margin ever, an increase of 30% (or 3,000 bps) compared to Q3 2019. This substantial improvement in Adjusted EBITDA demonstrates the strength of our business, as well as a significantly improved cost structure.
• Q3 net income of $834 million was our most profitable quarter ever, nearly 4x larger than a year ago. Net income in Q3 2021 improved $615 million (280%) compared to Q3 2020 and $567 million (213%) compared to Q3 2019 due to our significant revenue recovery and our continued expense discipline.
• Q3 Adjusted EBITDA exceeded $1 billion for the first time ever. Adjusted EBITDA in Q3 2021 of $1.1 billion was also our highest ever, doubling from $501 million in Q3 2020 and more than tripling from $314 million in Q3 2019. Adjusted EBITDA margin was 49% for Q3 2021, by far our best margin ever, an increase of 30% (or 3,000 bps) compared to Q3 2019. This substantial improvement in Adjusted EBITDA demonstrates the strength of our business, as well as a significantly improved cost structure.
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AirBnb's management commentary on their 3rd quarter 2021 earnings
The travel rebound that began earlier this year accelerated in Q3, resulting in Airbnb’s strongest quarter ever. Revenue and net income were our highest ever. Adjusted EBITDA exceeded $1 billion, also our highest ever. This summer, we reached a major milestone of 1 billion cumulative guest arrivals as more people got vaccinated and travel restrictions were relaxed. Host earnings reached a record $12.8 billion in the quarter, and active listings continued to grow. But something bigger than a travel rebound is happening.
The world is undergoing a revolution in how we live and work. Technologies like Zoom make it possible to work from home. Airbnb makes it possible to work from any home. This newfound flexibility is bringing about a revolution in how we travel. Millions of people can now take more frequent trips, take longer trips, travel to more locations, and even live anywhere on Airbnb. On May 24, we introduced the Airbnb 2021 Release, with over 100 upgrades to improve every aspect of the Airbnb service. We made it easier for anyone to become a Host, and added new features that gave guests more flexibility when planning their travel. On November 9, we will be announcing the Airbnb 2021 Winter Release, with another 50+ upgrades and innovations that make it even easier to host and support the ongoing travel revolution. With this announcement, we’ll have delivered over 150 upgrades in 2021.
The world is undergoing a revolution in how we live and work. Technologies like Zoom make it possible to work from home. Airbnb makes it possible to work from any home. This newfound flexibility is bringing about a revolution in how we travel. Millions of people can now take more frequent trips, take longer trips, travel to more locations, and even live anywhere on Airbnb. On May 24, we introduced the Airbnb 2021 Release, with over 100 upgrades to improve every aspect of the Airbnb service. We made it easier for anyone to become a Host, and added new features that gave guests more flexibility when planning their travel. On November 9, we will be announcing the Airbnb 2021 Winter Release, with another 50+ upgrades and innovations that make it even easier to host and support the ongoing travel revolution. With this announcement, we’ll have delivered over 150 upgrades in 2021.
AirBnb (ABNB) stock price history since their listing
The image below shows the stock price history of Air Bnb (ABNB) since their listing. And its been a good time for AirBnb stockholders with the stock increasing sharply by 236% since their listing
The stock of AirBnb is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of AirBnb stock is positive at this point in time.
The stock of AirBnb is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of AirBnb stock is positive at this point in time.
Latest stock valuation of AirBnb (ABNB)
So what is AirBnb stock worth based on their 3rd quarter 2021 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for AirBnb (ABNB) at $140.20 a stock.
We therefore believe the stock of AirBnb is overvalued at its current price of $201.62
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $140.20, thus a good entry point into AirBnb would be at $126.20 or below.
We expect the stock of AirBnb to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued.
We rate the stock of AirBnb as a sell
We therefore believe the stock of AirBnb is overvalued at its current price of $201.62
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $140.20, thus a good entry point into AirBnb would be at $126.20 or below.
We expect the stock of AirBnb to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued.
We rate the stock of AirBnb as a sell
Next earnings release of AirBnb (ABNB)
It is expected that AirBnb (ABNB) will release their 4tht quarter 2021 earnings report in early February 2021