Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 22, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-39778 | |
Entity Registrant Name | Airbnb, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-3051428 | |
Entity Address, Address Line One | 888 Brannan Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94103 | |
City Area Code | 415 | |
Local Phone Number | 510-4027 | |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | ABNB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001559720 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year End Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 441,500,418 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 193,343,397 | |
Common Class C | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 | |
Common Class H | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 7,829 | $ 6,874 |
Short-term investments (including assets reported at fair value of $2,507 and $2,524, respectively) | 3,264 | 3,197 |
Funds receivable and amounts held on behalf of customers | 8,737 | 5,869 |
Prepaids and other current assets (including customer receivables of $249 and $212 and allowances of $44 and $37, respectively) | 563 | 569 |
Total current assets | 20,393 | 16,509 |
Deferred tax assets, net | 2,886 | 2,881 |
Goodwill and intangible assets, net | 786 | 792 |
Other assets, noncurrent | 472 | 463 |
Total assets | 24,537 | 20,645 |
Current liabilities: | ||
Accrued expenses, accounts payable, and other current liabilities | 2,968 | 2,654 |
Funds payable and amounts payable to customers | 8,737 | 5,869 |
Unearned fees | 2,434 | 1,427 |
Total current liabilities | 14,139 | 9,950 |
Long-term debt | 1,992 | 1,991 |
Other liabilities, noncurrent | 510 | 539 |
Total liabilities | 16,641 | 12,480 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 11,819 | 11,639 |
Accumulated other comprehensive loss | (9) | (49) |
Accumulated deficit | (3,914) | (3,425) |
Total stockholders’ equity | 7,896 | 8,165 |
Total liabilities and stockholders’ equity | $ 24,537 | $ 20,645 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Short-term investments assets reported at fair value | $ 2,524 | $ 2,507 |
Customer receivables, before allowance | 212 | 249 |
Customer receivables, allowance | $ 37 | $ 44 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common Class A | ||
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 443,000,000 | 438,000,000 |
Common stock outstanding (in shares) | 443,000,000 | 438,000,000 |
Common Class B | ||
Common stock authorized (in shares) | 710,000,000 | 710,000,000 |
Common stock issued (in shares) | 193,000,000 | 200,000,000 |
Common stock outstanding (in shares) | 193,000,000 | 200,000,000 |
Common Class C | ||
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 0 | 0 |
Common stock outstanding (in shares) | 0 | 0 |
Common Class H | ||
Common stock authorized (in shares) | 26,000,000 | 26,000,000 |
Common stock issued (in shares) | 9,000,000 | 9,000,000 |
Common stock outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues [Abstract] | ||
Revenue | $ 2,142 | $ 1,818 |
Costs and expenses: | ||
Cost of revenue | 480 | 428 |
Operations and support | 285 | 282 |
Product development | 475 | 420 |
Sales and marketing | 514 | 450 |
General and administrative | 287 | 243 |
Total costs and expenses | 2,041 | 1,823 |
Income (loss) from operations | 101 | (5) |
Interest income | 202 | 146 |
Other expense, net | (10) | (11) |
Income before income taxes | 293 | 130 |
Provision for income taxes | 29 | 13 |
Net income | $ 264 | $ 117 |
Net income per share attributable to Class A and Class B common stockholders: | ||
Net income per share attributable to Class A and Class B common stockholders, basic (in USD per share) | $ 0.41 | $ 0.18 |
Net income per share attributable to Class A and Class B common stockholders, diluted (in USD per share) | $ 0.41 | $ 0.18 |
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | ||
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, basic (in shares) | 638 | 634 |
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, diluted (in shares) | 654 | 670 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 264 | $ 117 |
Other comprehensive income: | ||
Net unrealized income (loss) on available-for-sale marketable securities, net of tax | (3) | 3 |
Net unrealized income (loss) on cash flow hedges, net of tax | 48 | (4) |
Foreign currency translation adjustments | (5) | 3 |
Other comprehensive income | 40 | 2 |
Comprehensive income | $ 304 | $ 119 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | |
Beginning balance (in shares) at Dec. 31, 2022 | 631 | |||||
Beginning balance at Dec. 31, 2022 | $ 5,560 | $ 0 | [1] | $ 11,557 | $ (32) | $ (5,965) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 117 | 117 | ||||
Other comprehensive income | 2 | 2 | ||||
Exercise of common stock options (in shares) | 2 | |||||
Exercise of common stock options | 17 | 17 | ||||
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes (in shares) | 1 | |||||
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes | (155) | (155) | ||||
Stock-based compensation | 243 | 243 | ||||
Repurchases of common stock (in shares) | (4) | |||||
Repurchases of common stock | (493) | (493) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 630 | |||||
Ending balance at Mar. 31, 2023 | 5,291 | $ 0 | [1] | 11,662 | (30) | (6,341) |
Beginning balance (in shares) at Dec. 31, 2023 | 638 | |||||
Beginning balance at Dec. 31, 2023 | 8,165 | $ 0 | [1] | 11,639 | (49) | (3,425) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 264 | 264 | ||||
Other comprehensive income | $ 40 | 40 | ||||
Exercise of common stock options (in shares) | 1 | 1 | ||||
Exercise of common stock options | $ 46 | 46 | ||||
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes (in shares) | 2 | |||||
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes | (168) | (168) | ||||
Stock-based compensation | 302 | 302 | ||||
Repurchases of common stock (in shares) | (5) | |||||
Repurchases of common stock | (753) | (753) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 636 | |||||
Ending balance at Mar. 31, 2024 | $ 7,896 | $ 0 | [1] | $ 11,819 | $ (9) | $ (3,914) |
[1]Amounts round to zero and do not change rounded totals |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 264 | $ 117 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 14 | 11 |
Stock-based compensation expense | 295 | 240 |
Other, net | 4 | 12 |
Changes in operating assets and liabilities: | ||
Prepaids and other assets | 13 | (32) |
Accrued expenses and other liabilities | 325 | 250 |
Unearned fees | 1,008 | 989 |
Net cash provided by operating activities | 1,923 | 1,587 |
Cash flows from investing activities: | ||
Purchases of short-term investments | (826) | (1,094) |
Sales and maturities of short-term investments | 756 | 917 |
Other investing activities, net | (14) | (6) |
Net cash used in investing activities | (84) | (183) |
Cash flows from financing activities: | ||
Taxes paid related to net share settlement of equity awards | (155) | (151) |
Proceeds from exercise of equity awards | 46 | 17 |
Repurchases of common stock | (750) | (493) |
Change in funds payable and amounts payable to customers | 2,993 | 2,913 |
Net cash provided by financing activities | 2,134 | 2,286 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (111) | 79 |
Net increase in cash, cash equivalents, and restricted cash | 3,862 | 3,769 |
Cash, cash equivalents, and restricted cash, beginning of period | 12,667 | 12,103 |
Cash, cash equivalents, and restricted cash, end of period | 16,529 | 15,872 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net of refunds | $ 29 | $ 11 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Airbnb, Inc. (the “Company” or “Airbnb”) was incorporated in Delaware in June 2008 and is headquartered in San Francisco, California. The Company operates a global platform for unique stays and experiences. The Company’s marketplace model connects hosts and guests (collectively referred to as “customers”) online or through mobile devices to book spaces and experiences around the world. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 16, 2024. The results for the interim periods are not necessarily indicative of results for the full year. Certain immaterial amounts in prior periods have been reclassified to conform with current period presentation. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows for these interim periods. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries in accordance with consolidation accounting guidance. All intercompany transactions have been eliminated in consolidation. Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. The Company regularly evaluates its estimates, including those related to bad debt reserves, fair value of investments, useful lives of long-lived assets and intangible assets, valuation of goodwill and intangible assets from acquisitions, contingent liabilities, insurance reserves, revenue recognition, valuation of common stock, stock-based compensation, and income and non-income taxes, among others. Actual results could differ materially from these estimates. As the impact of the uncertain macroeconomic conditions, including inflation and rising interest rates, continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the unaudited condensed consolidated financial statements as new events occur and additional information becomes known. To the extent the Company’s actual results differ materially from those estimates and assumptions, the Company’s future unaudited condensed consolidated financial statements could be affected. Recently Adopted Accounting Standards In June 2022, the Financial Accounting Standards Board (the “FASB”) issued guidance related to the fair value measurement of an equity security subject to contractual sale restrictions that prohibit the sale of the equity security. The new guidance also introduced new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The Company adopted the guidance effective January 1, 2024. There was no impact to the Company’s unaudited condensed consolidated financial statements upon adoption. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued an update which expands income tax disclosure in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update is effective for public companies in fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the update retrospectively. Early adoption is permitted. The Company does not expect the adoption of the new guidance to have a material impact on its unaudited condensed consolidated financial statements other than the expanded footnote disclosure. In November 2023, the FASB issued an update to improve disclosure of reportable segments on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. The update is effective for public companies in fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, on a retrospective basis with early adoption permitted. The Company does not expect the adoption of the new guidance to have a material impact on its unaudited condensed consolidated financial statements other than the expanded footnote disclosure. There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable, and the Company does not believe any of these accounting pronouncements have had, or will have, a material impact on its unaudited condensed consolidated financial statements or disclosures. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Cash, Cash Equivalents, and Restricted Cash The following table reconciles cash, cash equivalents, and restricted cash reported on the Company’s unaudited condensed consolidated balance sheets to the total amount presented in the unaudited condensed consolidated statements of cash flows (in millions): December 31, March 31, Cash and cash equivalents $ 6,874 $ 7,829 Cash and cash equivalents included in funds receivable and amounts held on behalf of customers 5,769 8,665 Restricted cash included in prepaids and other current assets 24 35 Total cash, cash equivalents, and restricted cash presented in the unaudited condensed consolidated statements of cash flows $ 12,667 $ 16,529 Supplemental disclosures of balance sheet information Supplemental balance sheet information consisted of the following (in millions): December 31, March 31, Other assets, noncurrent: Property and equipment, net $ 160 $ 171 Operating lease right-of-use assets 119 111 Other 184 190 Other assets, noncurrent $ 463 $ 472 Accrued expenses, accounts payable, and other current liabilities: Indirect taxes payable and withholding tax reserves $ 1,119 $ 1,455 Compensation and employee benefits 436 346 Accounts payable 141 184 Operating lease liabilities, current 61 61 Other 897 922 Accrued expenses, accounts payable, and other current liabilities $ 2,654 $ 2,968 Other liabilities, noncurrent: Operating lease liabilities, noncurrent $ 252 $ 237 Other liabilities, noncurrent 287 273 Other liabilities, noncurrent $ 539 $ 510 Payments to Customers The Company makes payments to customers as part of its incentive programs (composed of referral programs and marketing promotions) and refund activities. The payments are generally in the form of coupon credits to be applied toward future bookings or as cash refunds. The following table summarizes total payments made to customers (in millions): Three Months Ended 2023 2024 Reductions to revenue $ 77 $ 87 Charges to operations and support 22 20 Charges to sales and marketing expense 13 9 Total payments made to customers $ 112 $ 116 Revenue Disaggregated by Geographic Region The following table presents revenue disaggregated by listing location (in millions): Three Months Ended 2023 2024 North America $ 925 $ 1,015 Europe, the Middle East, and Africa 458 567 Latin America 235 307 Asia Pacific 200 253 Total revenue disaggregated by geographic region $ 1,818 $ 2,142 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The following tables summarize the Company’s investments by major security type (in millions): December 31, 2023 Amortized Gross Gross Total Short-term investments Debt securities: Certificates of deposit $ 172 $ — $ — $ 172 Government bonds 332 1 — 333 Commercial paper 366 — — 366 Corporate debt securities 1,490 4 (3) 1,491 Mortgage-backed and asset-backed securities 148 1 (4) 145 Total debt securities 2,508 6 (7) 2,507 Time deposits 690 — — 690 Total short-term investments $ 3,198 $ 6 $ (7) $ 3,197 Long-term investments (1) Debt securities: Corporate debt securities $ 13 $ — $ (9) $ 4 March 31, 2024 Amortized Gross Gross Total Short-term investments Debt securities: Certificates of deposit $ 13 $ — $ — $ 13 Government bonds 345 — — 345 Commercial paper 500 — — 500 Corporate debt securities 1,480 3 (4) 1,479 Mortgage-backed and asset-backed securities 191 — (4) 187 Total debt securities 2,529 3 (8) 2,524 Time deposits 740 — — 740 Total short-term investments $ 3,269 $ 3 $ (8) $ 3,264 Long-term investments (1) Debt securities: Corporate debt securities $ 13 $ — $ (9) $ 4 (1) Classified within other assets, noncurrent on the unaudited condensed consolidated balance sheets. As of December 31, 2023 and March 31, 2024, the Company did not have any available-for-sale debt securities for which the Company recorded credit-related losses. Unrealized gains and losses, net of tax before reclassifications from accumulated other comprehensive loss (“AOCI”) to other expense, net were not material for the three months ended March 31, 2023 and 2024. Realized gains and losses reclassified from AOCI to other expense, net were not material for the three months ended March 31, 2023 and 2024. Debt securities in an unrealized loss position had an estimated fair value of $777 million and $1.1 billion, and unrealized losses of $16 million and $18 million as of December 31, 2023 and March 31, 2024, respectively. A total of $283 million and $479 million of these securities, with unrealized losses of $14 million and $16 million, were in a continuous unrealized loss position for more than twelve months as of December 31, 2023 and March 31, 2024, respectively. The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in millions): March 31, 2024 Amortized Estimated Due within one year $ 1,489 $ 1,489 Due after one year through five years 957 947 Due after five years 96 92 Total $ 2,542 $ 2,528 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis (in millions): December 31, 2023 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents: Money market funds $ 2,018 $ — $ — $ 2,018 Certificates of deposit — 1 — 1 Government bonds — 115 — 115 Commercial paper — 223 — 223 Corporate debt securities — 12 — 12 2,018 351 — 2,369 Short-term investments: Certificates of deposit — 172 — 172 Government bonds — 333 — 333 Commercial paper — 366 — 366 Corporate debt securities — 1,491 — 1,491 Mortgage-backed and asset-backed securities — 145 — 145 — 2,507 — 2,507 Funds receivable and amounts held on behalf of customers: Money market funds 1,360 — — 1,360 Prepaids and other current assets: Foreign exchange derivative assets — 27 — 27 Other assets, noncurrent: Corporate debt securities — — 4 4 Total assets at fair value $ 3,378 $ 2,885 $ 4 $ 6,267 Liabilities Accrued expenses, accounts payable, and other current liabilities: Foreign exchange derivative liabilities $ — $ 55 $ — $ 55 Other liabilities, noncurrent: Foreign exchange derivative liabilities — 5 — 5 Total liabilities at fair value $ — $ 60 $ — $ 60 March 31, 2024 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents: Money market funds $ 2,144 $ — $ — $ 2,144 Government bonds — 124 — 124 Commercial paper — 251 — 251 Corporate debt securities — 39 — 39 2,144 414 — 2,558 Short-term investments: Certificates of deposit — 13 — 13 Government bonds — 345 — 345 Commercial paper — 500 — 500 Corporate debt securities — 1,479 — 1,479 Mortgage-backed and asset-backed securities — 187 — 187 — 2,524 — 2,524 Funds receivable and amounts held on behalf of customers: Money market funds 2,277 — — 2,277 Prepaids and other current assets: Foreign exchange derivative assets — 35 — 35 Other assets, noncurrent: Corporate debt securities — — 4 4 Total assets at fair value $ 4,421 $ 2,973 $ 4 $ 7,398 Liabilities Accrued expenses, accounts payable and other current liabilities: Foreign exchange derivative liabilities $ — $ 15 $ — $ 15 Total liabilities at fair value $ — $ 15 $ — $ 15 There were no material changes in unrealized losses included in other comprehensive income relating to investments measured at fair value for which the Company has utilized Level 3 inputs to determine fair value during the three months ended March 31, 2023 and 2024. There were no transfers of financial instruments into or out of Level 3 during the three months ended March 31, 2023 and 2024. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | Derivative Instruments and Hedging The Company has a portion of its business denominated and transacted in foreign currencies, which subjects the Company to foreign exchange risk, and uses derivative instruments to manage financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes. The Company may elect to designate certain derivatives to partially offset its business exposure to foreign exchange risk. However, the Company may choose not to hedge certain exposures for a variety of reasons including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange rates. Foreign Exchange Risk To protect revenue from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, option contracts, or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue, for up to 18 months. The Company may also enter into derivative instruments that are not designated as accounting hedges to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. The following table summarizes the effect of derivative instruments on the Company’s unaudited condensed consolidated balance sheets (in millions): Derivative Assets (1) Location December 31, March 31, Derivatives designated as hedging instruments: Foreign exchange contracts (current) Prepaids and other current assets $ 4 $ 21 Foreign exchange contracts (noncurrent) Other assets, noncurrent — 1 Total derivatives designated as hedging instruments $ 4 $ 22 Derivatives not designated as hedging instruments: Foreign exchange contracts (current) Prepaids and other current assets $ 23 $ 15 Derivative Liabilities (1) Location December 31, March 31, Derivatives designated as hedging instruments: Foreign exchange contracts (current) Accrued expenses, accounts payable, and other current liabilities $ 25 $ 4 Foreign exchange contracts (noncurrent) Other liabilities, noncurrent 5 — Total derivatives designated as hedging instruments $ 30 $ 4 Derivatives not designated as hedging instruments: Foreign exchange contracts (current) Accrued expenses, accounts payable, and other current liabilities $ 30 $ 11 (1) Derivative assets and derivatives liabilities are measured using Level 2 inputs. To limit credit risk, the Company generally enters into master netting arrangements with the respective counterparties to the Company’s derivative contracts, under which the Company is allowed to settle transactions with a single net amount payable by one party to the other. As of March 31, 2024, the potential effect of these rights of off-set associated with the Company’s derivative contracts would be a reduction to both derivative assets and liabilities of $15 million, resulting in net derivative assets of $22 million. The effect of derivative instruments designated as hedging instruments on the unaudited condensed consolidated statements of operations was not material for the three months ended March 31, 2024. Effect of derivative instruments designated as hedging instruments on AOCI The following table summarizes the activity of derivative instruments designated as cash flow hedges and the impact of these derivative contracts on AOCI, net of tax (in millions): Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified from Three Months Ended March 31, Three Months Ended March 31, 2023 2024 2023 2024 Derivatives designated as cash flow hedges: Foreign exchange contracts $ (4) $ 50 $ — $ 2 As of March 31, 2024, cumulative unrealized gains recorded in AOCI, net of tax related to derivative instruments designated as hedging instruments were $17 million. Effect of derivative instruments not designated as hedging instruments on the unaudited condensed consolidated statements of operations The following table presents the activity of derivative instruments not designated as hedging instruments and the impact of these derivative contracts on the unaudited condensed consolidated statements of operations (in millions): Realized Loss on Derivatives Unrealized Gain (Loss) on Derivatives Three Months Ended March 31, Three Months Ended March 31, 2023 2024 2023 2024 Derivatives not designated as hedging instruments: Foreign exchange contracts $ (20) $ (21) $ (1) $ 11 Cash flow hedges The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was $2.0 billion and $2.2 billion as of December 31, 2023 and March 31, 2024, respectively. As of March 31, 2024, approximately $16 million of deferred net gains on both outstanding and matured derivatives in AOCI are expected to be reclassified to revenue during the next 12 months concurrent with the underlying hedged transactions which will be recorded in revenue. Actual amounts ultimately reclassified to revenue are dependent on the exchange rates in effect when derivative contracts currently outstanding mature. Derivatives not designated as hedging instruments The total notional amount of outstanding derivatives not designated as hedging instruments was $2.4 billion and $3.1 billion as of December 31, 2023 and March 31, 2024, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Senior Notes In 2021, the Company issued $2.0 billion aggregate principal amount of 0% convertible senior notes due 2026 (the "2026 Notes") pursuant to an indenture, dated March 8, 2021 (the "Indenture"), between the Company and U.S. Bank National Association, as trustee. As of both December 31, 2023 and March 31, 2024, total outstanding debt, net of unamortized debt discount and debit issuance costs, was $2.0 billion. Interest expense was immaterial for both the three months ended March 31, 2023 and 2024. As of March 31, 2024, the if-converted value of the 2026 Notes did not exceed the outstanding principal amount. As of March 31, 2024, the total estimated fair value of the 2026 Notes was $1.9 billion and was determined based on a market approach using actual bids and offers of the 2026 Notes in an over-the-counter market on the last trading day of the period, or Level 2 inputs. 2022 Credit Facility In 2022, the Company entered into a five-year unsecured Revolving Credit Agreement, which provides for initial commitments by a group of lenders led by Morgan Stanley Senior Funding, Inc. of $1.0 billion (“2022 Credit Facility”). The 2022 Credit Facility provides a $200 million sub-limit for the issuance of letters of credit. The 2022 Credit Facility contains customary events of default, affirmative and negative covenants, including restrictions on the Company’s and certain of its subsidiaries’ ability to incur debt and liens, undergo fundamental changes, as well as certain financial covenants. The Company was in compliance with all financial covenants as of March 31, 2024. As of March 31, 2024, no amounts were drawn under the 2022 Credit Facility and outstanding letters of credit totaled $25 million. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation Expense The following table summarizes total stock-based compensation expense (in millions): Three Months Ended 2023 2024 Operations and support $ 15 $ 19 Product development 149 185 Sales and marketing 28 35 General and administrative 48 56 Stock-based compensation expense $ 240 $ 295 Stock Option and Restricted Stock Unit Activity A summary of stock option and restricted stock unit (“RSU”) activity under the Company’s equity incentive plans was as follows (in millions, except per share amounts): Outstanding Stock Options Outstanding RSUs Shares Number of Weighted- Number of Weighted- As of December 31, 2023 134 7 $ 71.76 30 $ 85.35 Granted (7) — — 7 166.17 Increase in shares available for grant 13 — — — — Options exercised/RSUs vested (1) 1 (1) 42.12 (2) 109.14 As of March 31, 2024 141 6 $ 80.12 35 $ 100.12 (1) RSUs vested are net of shares withheld for taxes. Number of Weighted- Weighted- Average Remaining Contractual Life (Years) Aggregate Options outstanding as of March 31, 2024 6 $ 80.12 5.87 $ 541 Options exercisable as of March 31, 2024 5 $ 66.85 5.12 $ 484 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has commitments including purchase obligations for web-hosting services and other commitments for brand marketing. As of March 31, 2024, there were no material changes outside the ordinary course of business to the Company’s commitments, as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023. Lodging Tax Obligations and Other Non-Income Tax Matters Platform Related Taxes and Collection Obligations Some states and localities in the United States and elsewhere in the world impose transient occupancy or lodging accommodations taxes (“Lodging Taxes”) on the use or occupancy of lodging accommodations or other traveler services. As of March 31, 2024, the Company collects and remits Lodging Taxes in approximately 33,000 jurisdictions on behalf of its hosts. Such Lodging Taxes are generally remitted to tax jurisdictions within a 30 to 90-day period following the end of each month. The Company’s potential obligations with respect to Lodging Taxes could be affected by various factors, which include, but are not limited to, whether the Company determines or any tax authority asserts that the Company has a responsibility to collect lodging and related taxes on either historical or future transactions, or by the introduction of new ordinances and taxes that subject the Company’s operations to such taxes. Accordingly, the ultimate resolution of Lodging Taxes may be greater or less than the reserve amounts that the Company has recorded. at issue impose a Lodging Tax obligation on the person exercising the taxable privilege of providing accommodations, or the Company’s hosts. The imposition of such taxes on the Company could increase the cost of a guest booking and potentially cause a reduction in the volume of bookings on the Company’s platform, which would adversely impact the Company’s results of operations. The Company will continue to monitor the application and interpretation of lodging and related taxes and ordinances and will adjust accruals based on any new information or further developments. In 2017, Italy passed a law purporting to require short-term rental platforms that process payments to withhold and remit host income tax and collect and remit tourist tax, amongst other obligations (“2017 Law”). The Company challenged this law before the Italian courts and the Court of Justice of the European Union (“CJEU”). In December 2022, the CJEU found that European law does not prohibit member states from passing legislation requiring short-term rental platforms to withhold income taxes from their hosts, however a requirement to appoint a tax representative, on which the 2017 Law and the withholding obligations are based, is contrary to European Union (“EU”) law. In October 2023, the Italian national court upheld the ruling of the CJEU. The Company’s subsidiary in Italy and subsidiary in Ireland continue to be, or could be in the future, subject to tax audits in Italy, including in relation to permanent establishment, transfer pricing, and withholding obligations. In May 2023, the Guardia di Finanza de Milano (“GdF”) issued a Tax Audit Report recommending to the Italian tax authorities a formal tax assessment of 779 million Euro on Airbnb’s subsidiary in Ireland relating to the 2017 Law and associated withholding tax obligations. On December 13, 2023, without admitting any liability, Airbnb Ireland signed an agreement with the Italian Revenue Agency (“ITA”) in settlement of the 2017-2021 audit period for an aggregate payment of 576 million Euro ($621 million). Such agreement settles a dispute about Airbnb Ireland’s obligations to withhold and remit host income tax, including taxes, interest, and penalties, for those relevant periods. The GdF conducted a withholding tax audit of Airbnb Ireland UC for the 2022 and 2023 tax years and issued a report to the ITA in March 2024. The Company expects to begin settlement discussions with the ITA in the second quarter 2024. With respect to all other withholding tax on payments made to hosts and transactional taxes for which a loss is probable or reasonably possible, the Company is unable to determine an estimate of the possible loss or range of loss beyond the amounts already accrued. Payroll Taxes The Company is subject to regular payroll tax examinations by various international, state and local jurisdictions. Although management believes its tax withholding remittance practices are appropriate, the Company may be subject to additional tax liabilities, including interest and penalties, if any tax authority disagrees with the Company’s withholding and remittance practices, or if there are changes in laws, regulations, administrative practices, principles or interpretations related to payroll tax withholding in the various international, state and local jurisdictions. Legal and Regulatory Matters Regulatory Matters further alter or impact the Company’s business. Intellectual Property The Company has been and is currently subject to claims relating to intellectual property, including alleged patent infringement. Adverse results in such lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing the Company from offering certain features, functionalities, products, or services, and may also cause the Company to change its business practices or require development of non-infringing products or technologies, which could result in a loss of revenue or otherwise harm its business. To date, the Company has not incurred any material costs as a result of such cases and has not recorded any material liabilities in its consolidated financial statements related to such matters. Litigation and Other Legal Proceedings The Company is currently involved in, and may in the future be involved in, legal proceedings, claims, and government investigations in the ordinary course of business. These include proceedings, claims, and investigations relating to, among other things, regulatory matters, commercial matters, intellectual property, competition, tax, employment, pricing, discrimination, consumer rights, personal injury, and property rights. Depending on the nature of the proceeding, claim, or investigation, the Company may be subject to monetary damage awards, fines, penalties, and/or injunctive orders. Furthermore, the outcome of these matters could materially adversely affect the Company’s business, results of operations, and financial condition. The outcomes of legal proceedings, claims, and government investigations are inherently unpredictable and subject to significant judgment to determine the likelihood and amount of loss related to such matters. While it is not possible to determine the outcomes, the Company believes based on its current knowledge that the resolution of all such pending matters will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, results of operations, financial condition, or cash flows. The Company establishes an accrued liability for loss contingencies related to legal matters when a loss is both probable and reasonably estimable. These accruals represent management’s best estimate of probable losses. Such currently accrued amounts are not material to the Company’s unaudited condensed consolidated financial statements. However, management’s views and estimates related to these matters may change in the future, as new events and circumstances arise and the matters continue to develop. Until the final resolution of legal matters, there may be an exposure to losses in excess of the amounts accrued. With respect to outstanding legal matters, based on current knowledge, the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, results of operations, financial condition, or cash flows. Legal fees are expensed as incurred. Host Protections The Company offers AirCover coverage, which includes but is not limited to, the Company’s Host Damage Protection program that provides protection of up to $3 million for direct physical loss or damage to a host’s covered property caused by guests during a confirmed booking and when the host and guest are unable to resolve the dispute. The Company retains risk and also maintains insurance from third parties on a per claim basis to protect the Company’s financial exposure under this program. In addition, through third-party insurers and self-insurance mechanisms, including a wholly-owned captive insurance subsidiary, the Company provides insurance coverage for third-party bodily injury or property damage liability claims that occur during a stay. The Company’s Host Liability Insurance and Experiences Liability Insurance consists of a commercial general liability policy, with hosts and the Company as named insureds and landlords of hosts as additional insureds. The Host Liability Insurance and Experiences Liability Insurance provides primary coverage for up to $1 million per occurrence, subject to a $1 million cap per listing location, and includes various market standard conditions, limitations, and exclusions. Indemnifications The Company has entered into indemnification agreements with certain of its employees, officers and directors. The indemnification agreements and the Company’s Amended and Restated Bylaws (the “Bylaws”) require the Company to indemnify its directors and officers and those employees who have entered into indemnification agreements to the fullest extent not prohibited by Delaware law. Subject to certain limitations, the indemnification agreements and Bylaws also require the Company to advance expenses incurred by its directors and officers and those employees who have entered into indemnification agreements. No demands have been made upon the Company to provide indemnification or advancement under the indemnification agreements or the Bylaws, and thus, there are no indemnification or advancement claims that the Company is aware of that could have a material adverse effect on the Company’s business, results of operations, financial condition, or cash flows. In the ordinary course of business, the Company has included limited indemnification provisions in certain agreements with parties with whom the Company has commercial relations, which provisions are of varying scope and terms with respect to indemnification of certain matters, which may include losses arising out of the Company’s breach of such agreements or out of intellectual property infringement claims made by third parties. It is not possible to determine the maximum potential loss under these indemnification provisions due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, no significant costs have been incurred, either individually or collectively, in connection with the Company’s indemnification provisions. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s tax provision for interim periods is determined by using an estimated annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates the estimated annual effective tax rate and makes a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to significant volatility due to several factors, including accurately predicting the Company’s pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, intercompany transactions, audit-related developments, and changes in statutes, regulations, case law, and administrative actions. The Company recorded income tax expense of $13 million and $29 million for the three months ended March 31, 2023 and 2024, respectively, which were primarily driven by current and deferred tax on U.S. and foreign earnings, the accrual of interest on certain uncertain tax positions, and the income tax benefit from excess tax benefits on stock-based compensation arising during the quarter. The Company’s significant tax jurisdictions include the United States, California, and Ireland. The Company is currently under examination for income taxes by the Internal Revenue Service (“IRS”) for the 2013, 2016, 2017, and 2018 tax years. The primary issue under examination in the 2013 audit is the valuation of the Company’s international intellectual property which was sold to a subsidiary in 2013. In the year ended December 31, 2019, new information became available which required the Company to remeasure its reserve for unrecognized tax benefits. The Company recorded additional tax expense of $196 million during the year ended December 31, 2019. In December 2020, the Company received a Notice of Proposed Adjustment (“NOPA”) from the IRS which proposed an increase to the Company’s U.S. taxable income that could result in additional income tax expense and cash liability of $1.3 billion, plus penalties and interest, which exceeds its current reserve recorded in its consolidated financial statements by more than $1.0 billion. The Company disagrees with the proposed adjustment and continues to vigorously contest it. In February 2021, the Company submitted a protest to the IRS describing its disagreement with the proposed adjustment and requesting the case be transferred to the IRS Independent Office of Appeals (“IRS Appeals”). In December 2021, the Company received a rebuttal from the IRS with the same proposed adjustments that were in the NOPA. In January 2022, the Company entered into an administrative dispute process with IRS Appeals. An acceptable outcome is not expected to be reached with IRS Appeals, and the Company expects to receive a Statutory Notice of Deficiency (“Notice”) from the IRS related to the aforementioned valuation of its international intellectual property consistent with the previously received NOPA, claiming that the Company owes $1.3 billion in tax, plus penalties and interest. The Company will continue to pursue all available remedies to resolve this dispute, including petitioning the U.S. Tax Court (“Tax Court”) for redetermination, and if necessary, appealing the Tax Court’s decision to the appropriate appellate court. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations. If the IRS prevails in the assessment of additional tax due based on its position and such tax and related interest and penalties, if any, exceeds the Company’s current reserves, such outcome could have a material adverse impact on the Company’s financial position and results of operations, and any assessment of additional tax could require a significant cash payment and have a material adverse impact on the Company’s unaudited condensed consolidated statements of cash flow. On August 16, 2022, the Inflation Reduction Act was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax known as the Corporate Alternative Minimum Tax (“CAMT”) on global adjusted financial statement income and a 1% excise tax on net share repurchases. The Inflation Reduction Act became effective beginning in fiscal year 2023. The Company anticipates paying a material amount of additional federal taxes in 2024 due to the CAMT. The additional CAMT will result in tax credits that are expected to offset the Company’s federal tax in subsequent years, thus there is no impact to the overall tax provision. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods indicated (in millions, except per share amounts): Three Months Ended 2023 2024 Net income $ 117 $ 264 Add: convertible notes interest expense, net of tax 1 1 Net income - diluted $ 118 $ 265 Weighted-average shares in computing net income per share attributable to Class A and Class B common stockholders: Basic 634 638 Effect of dilutive securities 36 16 Diluted 670 654 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.18 $ 0.41 Diluted $ 0.18 $ 0.41 As of both March 31, 2023 and 2024, 9.6 million shares of RSUs were excluded from the table below because they are subject to performance conditions that were not achieved as of such date. Additionally, the following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in millions): Three Months Ended 2023 2024 Stock options 1 2 RSUs 8 4 Total 9 6 Share Repurchase Program In May 2023 and February 2024, the Company announced that its board of directors approved share repurchase programs to purchase up to $2.5 billion and $6.0 billion of the Company’s Class A common stock, respectively. Share repurchases under these share repurchase programs may be made through a variety of methods, such as open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions or by any combination of such methods. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements and other relevant factors. These share repurchase programs do not obligate the Company to repurchase any specific number of shares and may be modified, suspended or terminated at any time at the Company’s discretion. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 264 | $ 117 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Director and Officer 10b5-1 Trading Plans (“10b5-1 Plans”) The following table sets forth the material terms of 10b5-1 Plans intended to satisfy the affirmative defense conditions of Rule 10b5–1(c) that were adopted, terminated, or modified by our directors and officers during the three months ended March 31, 2024: Name and Title of Director or Officer Action Date Expiration Date Maximum Number of Shares to be Sold Under the Plan David Bernstein, Chief Accounting Officer Adopt 2/22/2024 1/27/2025 41,000 Brian Chesky, Chief Executive Officer and Director Adopt 2/28/2024 11/11/2024 1,146,000 Joseph Gebbia, Director Adopt 2/29/2024 10/31/2024 1,322,523 |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
David Bernstein [Member] | |
Trading Arrangements, by Individual | |
Name | David Bernstein |
Title | Chief Accounting Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 2/22/2024 |
Arrangement Duration | 340 days |
Aggregate Available | 41,000 |
Brian Chesky [Member] | |
Trading Arrangements, by Individual | |
Name | Brian Chesky |
Title | Chief Executive Officer and Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 2/28/2024 |
Arrangement Duration | 257 days |
Aggregate Available | 1,146,000 |
Joseph Gebbia [Member] | |
Trading Arrangements, by Individual | |
Name | Joseph Gebbia |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 2/29/2024 |
Arrangement Duration | 245 days |
Aggregate Available | 1,322,523 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 16, 2024. The results for the interim periods are not necessarily indicative of results for the full year. Certain immaterial amounts in prior periods have been reclassified to conform with current period presentation. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows for these interim periods. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries in accordance with consolidation accounting guidance. All intercompany transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. The Company regularly evaluates its estimates, including those related to bad debt reserves, fair value of investments, useful lives of long-lived assets and intangible assets, valuation of goodwill and intangible assets from acquisitions, contingent liabilities, insurance reserves, revenue recognition, valuation of common stock, stock-based compensation, and income and non-income taxes, among others. Actual results could differ materially from these estimates. As the impact of the uncertain macroeconomic conditions, including inflation and rising interest rates, continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the unaudited condensed consolidated financial statements as new events occur and additional information becomes known. To the extent the Company’s actual results differ materially from those estimates and assumptions, the Company’s future unaudited condensed consolidated financial statements could be affected. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards In June 2022, the Financial Accounting Standards Board (the “FASB”) issued guidance related to the fair value measurement of an equity security subject to contractual sale restrictions that prohibit the sale of the equity security. The new guidance also introduced new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The Company adopted the guidance effective January 1, 2024. There was no impact to the Company’s unaudited condensed consolidated financial statements upon adoption. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued an update which expands income tax disclosure in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update is effective for public companies in fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the update retrospectively. Early adoption is permitted. The Company does not expect the adoption of the new guidance to have a material impact on its unaudited condensed consolidated financial statements other than the expanded footnote disclosure. In November 2023, the FASB issued an update to improve disclosure of reportable segments on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. The update is effective for public companies in fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, on a retrospective basis with early adoption permitted. The Company does not expect the adoption of the new guidance to have a material impact on its unaudited condensed consolidated financial statements other than the expanded footnote disclosure. There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable, and the Company does not believe any of these accounting pronouncements have had, or will have, a material impact on its unaudited condensed consolidated financial statements or disclosures. |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles cash, cash equivalents, and restricted cash reported on the Company’s unaudited condensed consolidated balance sheets to the total amount presented in the unaudited condensed consolidated statements of cash flows (in millions): December 31, March 31, Cash and cash equivalents $ 6,874 $ 7,829 Cash and cash equivalents included in funds receivable and amounts held on behalf of customers 5,769 8,665 Restricted cash included in prepaids and other current assets 24 35 Total cash, cash equivalents, and restricted cash presented in the unaudited condensed consolidated statements of cash flows $ 12,667 $ 16,529 |
Schedule of Restricted Cash | The following table reconciles cash, cash equivalents, and restricted cash reported on the Company’s unaudited condensed consolidated balance sheets to the total amount presented in the unaudited condensed consolidated statements of cash flows (in millions): December 31, March 31, Cash and cash equivalents $ 6,874 $ 7,829 Cash and cash equivalents included in funds receivable and amounts held on behalf of customers 5,769 8,665 Restricted cash included in prepaids and other current assets 24 35 Total cash, cash equivalents, and restricted cash presented in the unaudited condensed consolidated statements of cash flows $ 12,667 $ 16,529 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information consisted of the following (in millions): December 31, March 31, Other assets, noncurrent: Property and equipment, net $ 160 $ 171 Operating lease right-of-use assets 119 111 Other 184 190 Other assets, noncurrent $ 463 $ 472 Accrued expenses, accounts payable, and other current liabilities: Indirect taxes payable and withholding tax reserves $ 1,119 $ 1,455 Compensation and employee benefits 436 346 Accounts payable 141 184 Operating lease liabilities, current 61 61 Other 897 922 Accrued expenses, accounts payable, and other current liabilities $ 2,654 $ 2,968 Other liabilities, noncurrent: Operating lease liabilities, noncurrent $ 252 $ 237 Other liabilities, noncurrent 287 273 Other liabilities, noncurrent $ 539 $ 510 |
Schedule of Payments Made to Customers | The following table summarizes total payments made to customers (in millions): Three Months Ended 2023 2024 Reductions to revenue $ 77 $ 87 Charges to operations and support 22 20 Charges to sales and marketing expense 13 9 Total payments made to customers $ 112 $ 116 |
Schedule of Revenue Disaggregated by Listing Location | The following table presents revenue disaggregated by listing location (in millions): Three Months Ended 2023 2024 North America $ 925 $ 1,015 Europe, the Middle East, and Africa 458 567 Latin America 235 307 Asia Pacific 200 253 Total revenue disaggregated by geographic region $ 1,818 $ 2,142 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments by Major Security Type | The following tables summarize the Company’s investments by major security type (in millions): December 31, 2023 Amortized Gross Gross Total Short-term investments Debt securities: Certificates of deposit $ 172 $ — $ — $ 172 Government bonds 332 1 — 333 Commercial paper 366 — — 366 Corporate debt securities 1,490 4 (3) 1,491 Mortgage-backed and asset-backed securities 148 1 (4) 145 Total debt securities 2,508 6 (7) 2,507 Time deposits 690 — — 690 Total short-term investments $ 3,198 $ 6 $ (7) $ 3,197 Long-term investments (1) Debt securities: Corporate debt securities $ 13 $ — $ (9) $ 4 March 31, 2024 Amortized Gross Gross Total Short-term investments Debt securities: Certificates of deposit $ 13 $ — $ — $ 13 Government bonds 345 — — 345 Commercial paper 500 — — 500 Corporate debt securities 1,480 3 (4) 1,479 Mortgage-backed and asset-backed securities 191 — (4) 187 Total debt securities 2,529 3 (8) 2,524 Time deposits 740 — — 740 Total short-term investments $ 3,269 $ 3 $ (8) $ 3,264 Long-term investments (1) Debt securities: Corporate debt securities $ 13 $ — $ (9) $ 4 (1) Classified within other assets, noncurrent on the unaudited condensed consolidated balance sheets. |
Schedule of Contractual Maturities of the Available-for-Sale Debt Securities | The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in millions): March 31, 2024 Amortized Estimated Due within one year $ 1,489 $ 1,489 Due after one year through five years 957 947 Due after five years 96 92 Total $ 2,542 $ 2,528 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis (in millions): December 31, 2023 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents: Money market funds $ 2,018 $ — $ — $ 2,018 Certificates of deposit — 1 — 1 Government bonds — 115 — 115 Commercial paper — 223 — 223 Corporate debt securities — 12 — 12 2,018 351 — 2,369 Short-term investments: Certificates of deposit — 172 — 172 Government bonds — 333 — 333 Commercial paper — 366 — 366 Corporate debt securities — 1,491 — 1,491 Mortgage-backed and asset-backed securities — 145 — 145 — 2,507 — 2,507 Funds receivable and amounts held on behalf of customers: Money market funds 1,360 — — 1,360 Prepaids and other current assets: Foreign exchange derivative assets — 27 — 27 Other assets, noncurrent: Corporate debt securities — — 4 4 Total assets at fair value $ 3,378 $ 2,885 $ 4 $ 6,267 Liabilities Accrued expenses, accounts payable, and other current liabilities: Foreign exchange derivative liabilities $ — $ 55 $ — $ 55 Other liabilities, noncurrent: Foreign exchange derivative liabilities — 5 — 5 Total liabilities at fair value $ — $ 60 $ — $ 60 March 31, 2024 Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents: Money market funds $ 2,144 $ — $ — $ 2,144 Government bonds — 124 — 124 Commercial paper — 251 — 251 Corporate debt securities — 39 — 39 2,144 414 — 2,558 Short-term investments: Certificates of deposit — 13 — 13 Government bonds — 345 — 345 Commercial paper — 500 — 500 Corporate debt securities — 1,479 — 1,479 Mortgage-backed and asset-backed securities — 187 — 187 — 2,524 — 2,524 Funds receivable and amounts held on behalf of customers: Money market funds 2,277 — — 2,277 Prepaids and other current assets: Foreign exchange derivative assets — 35 — 35 Other assets, noncurrent: Corporate debt securities — — 4 4 Total assets at fair value $ 4,421 $ 2,973 $ 4 $ 7,398 Liabilities Accrued expenses, accounts payable and other current liabilities: Foreign exchange derivative liabilities $ — $ 15 $ — $ 15 Total liabilities at fair value $ — $ 15 $ — $ 15 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments on the Company’s Condensed Consolidated Balance Sheets | The following table summarizes the effect of derivative instruments on the Company’s unaudited condensed consolidated balance sheets (in millions): Derivative Assets (1) Location December 31, March 31, Derivatives designated as hedging instruments: Foreign exchange contracts (current) Prepaids and other current assets $ 4 $ 21 Foreign exchange contracts (noncurrent) Other assets, noncurrent — 1 Total derivatives designated as hedging instruments $ 4 $ 22 Derivatives not designated as hedging instruments: Foreign exchange contracts (current) Prepaids and other current assets $ 23 $ 15 Derivative Liabilities (1) Location December 31, March 31, Derivatives designated as hedging instruments: Foreign exchange contracts (current) Accrued expenses, accounts payable, and other current liabilities $ 25 $ 4 Foreign exchange contracts (noncurrent) Other liabilities, noncurrent 5 — Total derivatives designated as hedging instruments $ 30 $ 4 Derivatives not designated as hedging instruments: Foreign exchange contracts (current) Accrued expenses, accounts payable, and other current liabilities $ 30 $ 11 (1) Derivative assets and derivatives liabilities are measured using Level 2 inputs. |
Schedule of Derivative Instruments Designated as Cash Flow Hedges and the Impact of Derivative Contracts on AOCI | The following table summarizes the activity of derivative instruments designated as cash flow hedges and the impact of these derivative contracts on AOCI, net of tax (in millions): Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified from Three Months Ended March 31, Three Months Ended March 31, 2023 2024 2023 2024 Derivatives designated as cash flow hedges: Foreign exchange contracts $ (4) $ 50 $ — $ 2 |
Schedule of Derivative Instruments Not Designated as Hedging Instruments and the Impact of Derivative Contracts on the Condensed Consolidated Statements of Operations | The following table presents the activity of derivative instruments not designated as hedging instruments and the impact of these derivative contracts on the unaudited condensed consolidated statements of operations (in millions): Realized Loss on Derivatives Unrealized Gain (Loss) on Derivatives Three Months Ended March 31, Three Months Ended March 31, 2023 2024 2023 2024 Derivatives not designated as hedging instruments: Foreign exchange contracts $ (20) $ (21) $ (1) $ 11 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes total stock-based compensation expense (in millions): Three Months Ended 2023 2024 Operations and support $ 15 $ 19 Product development 149 185 Sales and marketing 28 35 General and administrative 48 56 Stock-based compensation expense $ 240 $ 295 |
Schedule of Stock Option Activity | A summary of stock option and restricted stock unit (“RSU”) activity under the Company’s equity incentive plans was as follows (in millions, except per share amounts): Outstanding Stock Options Outstanding RSUs Shares Number of Weighted- Number of Weighted- As of December 31, 2023 134 7 $ 71.76 30 $ 85.35 Granted (7) — — 7 166.17 Increase in shares available for grant 13 — — — — Options exercised/RSUs vested (1) 1 (1) 42.12 (2) 109.14 As of March 31, 2024 141 6 $ 80.12 35 $ 100.12 (1) RSUs vested are net of shares withheld for taxes. Number of Weighted- Weighted- Average Remaining Contractual Life (Years) Aggregate Options outstanding as of March 31, 2024 6 $ 80.12 5.87 $ 541 Options exercisable as of March 31, 2024 5 $ 66.85 5.12 $ 484 |
Schedule of Restricted Stock Unit Activity | A summary of stock option and restricted stock unit (“RSU”) activity under the Company’s equity incentive plans was as follows (in millions, except per share amounts): Outstanding Stock Options Outstanding RSUs Shares Number of Weighted- Number of Weighted- As of December 31, 2023 134 7 $ 71.76 30 $ 85.35 Granted (7) — — 7 166.17 Increase in shares available for grant 13 — — — — Options exercised/RSUs vested (1) 1 (1) 42.12 (2) 109.14 As of March 31, 2024 141 6 $ 80.12 35 $ 100.12 (1) RSUs vested are net of shares withheld for taxes. Number of Weighted- Weighted- Average Remaining Contractual Life (Years) Aggregate Options outstanding as of March 31, 2024 6 $ 80.12 5.87 $ 541 Options exercisable as of March 31, 2024 5 $ 66.85 5.12 $ 484 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods indicated (in millions, except per share amounts): Three Months Ended 2023 2024 Net income $ 117 $ 264 Add: convertible notes interest expense, net of tax 1 1 Net income - diluted $ 118 $ 265 Weighted-average shares in computing net income per share attributable to Class A and Class B common stockholders: Basic 634 638 Effect of dilutive securities 36 16 Diluted 670 654 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.18 $ 0.41 Diluted $ 0.18 $ 0.41 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Additionally, the following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in millions): Three Months Ended 2023 2024 Stock options 1 2 RSUs 8 4 Total 9 6 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 7,829 | $ 6,874 | ||
Cash and cash equivalents included in funds receivable and amounts held on behalf of customers | 8,665 | 5,769 | ||
Restricted cash included in prepaids and other current assets | 35 | 24 | ||
Total cash, cash equivalents, and restricted cash presented in the unaudited condensed consolidated statements of cash flows | $ 16,529 | $ 12,667 | $ 15,872 | $ 12,103 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other assets, noncurrent: | ||
Property and equipment, net | $ 171 | $ 160 |
Operating lease right-of-use assets | 111 | 119 |
Other | 190 | 184 |
Other assets, noncurrent | 472 | 463 |
Accrued expenses, accounts payable, and other current liabilities: | ||
Indirect taxes payable and withholding tax reserves | 1,455 | 1,119 |
Compensation and employee benefits | 346 | 436 |
Accounts payable | 184 | 141 |
Operating lease liabilities, current | 61 | 61 |
Other | 922 | 897 |
Accrued expenses, accounts payable, and other current liabilities | 2,968 | 2,654 |
Other liabilities, noncurrent: | ||
Operating lease liabilities, noncurrent | 237 | 252 |
Other liabilities, noncurrent | 273 | 287 |
Other liabilities, noncurrent | $ 510 | $ 539 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Schedule of Payments Made to Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total payments made to customers | $ 116 | $ 112 |
Reductions to revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total payments made to customers | 87 | 77 |
Charges to operations and support | ||
Disaggregation of Revenue [Line Items] | ||
Total payments made to customers | 20 | 22 |
Charges to sales and marketing expense | ||
Disaggregation of Revenue [Line Items] | ||
Total payments made to customers | $ 9 | $ 13 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Schedule of Revenue Disaggregated by Listing Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue disaggregated by geographic region | $ 2,142 | $ 1,818 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue disaggregated by geographic region | 1,015 | 925 |
Europe, the Middle East, and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue disaggregated by geographic region | 567 | 458 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue disaggregated by geographic region | 307 | 235 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue disaggregated by geographic region | $ 253 | $ 200 |
Investments - Schedule of Inves
Investments - Schedule of Investments by Major Security Type (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Short-term investments | ||
Debt securities, amortized cost | $ 2,542 | |
Debt securities, total estimated fair value | 2,528 | |
Total short-term investments | 3,264 | $ 3,197 |
Long-term investments: | ||
Debt securities, amortized cost | 2,542 | |
Debt securities, total estimated fair value | 2,528 | |
Short-term investments | ||
Short-term investments | ||
Debt securities, amortized cost | 2,529 | 2,508 |
Debt securities, gross unrealized gains | 3 | 6 |
Debt securities, gross unrealized losses | (8) | (7) |
Debt securities, total estimated fair value | 2,524 | 2,507 |
Time deposits | 740 | 690 |
Amortized Cost | 3,269 | 3,198 |
Total short-term investments | 3,264 | 3,197 |
Long-term investments: | ||
Debt securities, amortized cost | 2,529 | 2,508 |
Debt securities, gross unrealized gains | 3 | 6 |
Debt securities, gross unrealized losses | (8) | (7) |
Debt securities, total estimated fair value | 2,524 | 2,507 |
Short-term investments | Certificates of deposit | ||
Short-term investments | ||
Debt securities, amortized cost | 13 | 172 |
Debt securities, gross unrealized gains | 0 | 0 |
Debt securities, gross unrealized losses | 0 | 0 |
Debt securities, total estimated fair value | 13 | 172 |
Long-term investments: | ||
Debt securities, amortized cost | 13 | 172 |
Debt securities, gross unrealized gains | 0 | 0 |
Debt securities, gross unrealized losses | 0 | 0 |
Debt securities, total estimated fair value | 13 | 172 |
Short-term investments | Government bonds | ||
Short-term investments | ||
Debt securities, amortized cost | 345 | 332 |
Debt securities, gross unrealized gains | 0 | 1 |
Debt securities, gross unrealized losses | 0 | 0 |
Debt securities, total estimated fair value | 345 | 333 |
Long-term investments: | ||
Debt securities, amortized cost | 345 | 332 |
Debt securities, gross unrealized gains | 0 | 1 |
Debt securities, gross unrealized losses | 0 | 0 |
Debt securities, total estimated fair value | 345 | 333 |
Short-term investments | Commercial paper | ||
Short-term investments | ||
Debt securities, amortized cost | 500 | 366 |
Debt securities, gross unrealized gains | 0 | 0 |
Debt securities, gross unrealized losses | 0 | 0 |
Debt securities, total estimated fair value | 500 | 366 |
Long-term investments: | ||
Debt securities, amortized cost | 500 | 366 |
Debt securities, gross unrealized gains | 0 | 0 |
Debt securities, gross unrealized losses | 0 | 0 |
Debt securities, total estimated fair value | 500 | 366 |
Short-term investments | Corporate debt securities | ||
Short-term investments | ||
Debt securities, amortized cost | 1,480 | 1,490 |
Debt securities, gross unrealized gains | 3 | 4 |
Debt securities, gross unrealized losses | (4) | (3) |
Debt securities, total estimated fair value | 1,479 | 1,491 |
Long-term investments: | ||
Debt securities, amortized cost | 1,480 | 1,490 |
Debt securities, gross unrealized gains | 3 | 4 |
Debt securities, gross unrealized losses | (4) | (3) |
Debt securities, total estimated fair value | 1,479 | 1,491 |
Short-term investments | Mortgage-backed and asset-backed securities | ||
Short-term investments | ||
Debt securities, amortized cost | 191 | 148 |
Debt securities, gross unrealized gains | 0 | 1 |
Debt securities, gross unrealized losses | (4) | (4) |
Debt securities, total estimated fair value | 187 | 145 |
Long-term investments: | ||
Debt securities, amortized cost | 191 | 148 |
Debt securities, gross unrealized gains | 0 | 1 |
Debt securities, gross unrealized losses | (4) | (4) |
Debt securities, total estimated fair value | 187 | 145 |
Long-term investments | Corporate debt securities | ||
Short-term investments | ||
Debt securities, amortized cost | 13 | 13 |
Debt securities, gross unrealized gains | 0 | 0 |
Debt securities, gross unrealized losses | (9) | (9) |
Debt securities, total estimated fair value | 4 | 4 |
Long-term investments: | ||
Debt securities, amortized cost | 13 | 13 |
Debt securities, gross unrealized gains | 0 | 0 |
Debt securities, gross unrealized losses | (9) | (9) |
Debt securities, total estimated fair value | $ 4 | $ 4 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities | $ 0 | $ 0 |
Debt securities in an unrealized loss position | 1,100,000,000 | 777,000,000 |
Debt securities, unrealized loss | 18,000,000 | 16,000,000 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | 479,000,000 | 283,000,000 |
Debt securities, continuous unrealized loss position, 12 months or longer | $ 16,000,000 | $ 14,000,000 |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of the Available-for-Sale Debt Securities (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Amortized Cost | |
Due within one year | $ 1,489 |
Due after one year through five years | 957 |
Due after five years | 96 |
Debt securities, amortized cost | 2,542 |
Estimated Fair Value | |
Due within one year | 1,489 |
Due after one year through five years | 947 |
Due after five years | 92 |
Total, Estimated Fair Value | $ 2,528 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Short-term investments | $ 2,528 | |
Short-term investments | 2,524 | $ 2,507 |
Corporate debt securities | Other assets, noncurrent | ||
Assets | ||
Short-term investments | 4 | 4 |
Fair Value, Recurring | ||
Assets | ||
Cash and cash equivalents | 2,558 | 2,369 |
Short-term investments | 2,524 | 2,507 |
Total assets at fair value | 7,398 | 6,267 |
Liabilities | ||
Total liabilities at fair value | 15 | 60 |
Fair Value, Recurring | Foreign exchange derivative | ||
Liabilities | ||
Other liabilities, current | 15 | 55 |
Other liabilities, noncurrent | 5 | |
Fair Value, Recurring | Prepaids and other current assets | Foreign exchange derivative | ||
Assets | ||
Other assets | 35 | 27 |
Fair Value, Recurring | Certificates of deposit | ||
Assets | ||
Short-term investments | 13 | 172 |
Fair Value, Recurring | Government bonds | ||
Assets | ||
Short-term investments | 345 | 333 |
Fair Value, Recurring | Commercial paper | ||
Assets | ||
Short-term investments | 500 | 366 |
Fair Value, Recurring | Corporate debt securities | ||
Assets | ||
Short-term investments | 1,479 | 1,491 |
Fair Value, Recurring | Corporate debt securities | Other assets, noncurrent | ||
Assets | ||
Other assets | 4 | 4 |
Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Assets | ||
Short-term investments | 187 | 145 |
Fair Value, Recurring | Money market funds | ||
Assets | ||
Cash and cash equivalents | 2,144 | 2,018 |
Funds receivable and amounts held on behalf of customers | 2,277 | 1,360 |
Fair Value, Recurring | Certificates of deposit | ||
Assets | ||
Cash and cash equivalents | 1 | |
Fair Value, Recurring | Government bonds | ||
Assets | ||
Cash and cash equivalents | 124 | 115 |
Fair Value, Recurring | Commercial paper | ||
Assets | ||
Cash and cash equivalents | 251 | 223 |
Fair Value, Recurring | Corporate debt securities | ||
Assets | ||
Cash and cash equivalents | 39 | 12 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Cash and cash equivalents | 2,144 | 2,018 |
Short-term investments | 0 | 0 |
Total assets at fair value | 4,421 | 3,378 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Foreign exchange derivative | ||
Liabilities | ||
Other liabilities, current | 0 | 0 |
Other liabilities, noncurrent | 0 | |
Fair Value, Recurring | Level 1 | Prepaids and other current assets | Foreign exchange derivative | ||
Assets | ||
Other assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Certificates of deposit | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Government bonds | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate debt securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate debt securities | Other assets, noncurrent | ||
Assets | ||
Other assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Mortgage-backed and asset-backed securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Money market funds | ||
Assets | ||
Cash and cash equivalents | 2,144 | 2,018 |
Funds receivable and amounts held on behalf of customers | 2,277 | 1,360 |
Fair Value, Recurring | Level 1 | Certificates of deposit | ||
Assets | ||
Cash and cash equivalents | 0 | |
Fair Value, Recurring | Level 1 | Government bonds | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate debt securities | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Cash and cash equivalents | 414 | 351 |
Short-term investments | 2,524 | 2,507 |
Total assets at fair value | 2,973 | 2,885 |
Liabilities | ||
Total liabilities at fair value | 15 | 60 |
Fair Value, Recurring | Level 2 | Foreign exchange derivative | ||
Liabilities | ||
Other liabilities, current | 15 | 55 |
Other liabilities, noncurrent | 5 | |
Fair Value, Recurring | Level 2 | Prepaids and other current assets | Foreign exchange derivative | ||
Assets | ||
Other assets | 35 | 27 |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Assets | ||
Short-term investments | 13 | 172 |
Fair Value, Recurring | Level 2 | Government bonds | ||
Assets | ||
Short-term investments | 345 | 333 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Assets | ||
Short-term investments | 500 | 366 |
Fair Value, Recurring | Level 2 | Corporate debt securities | ||
Assets | ||
Short-term investments | 1,479 | 1,491 |
Fair Value, Recurring | Level 2 | Corporate debt securities | Other assets, noncurrent | ||
Assets | ||
Other assets | 0 | 0 |
Fair Value, Recurring | Level 2 | Mortgage-backed and asset-backed securities | ||
Assets | ||
Short-term investments | 187 | 145 |
Fair Value, Recurring | Level 2 | Money market funds | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Funds receivable and amounts held on behalf of customers | 0 | 0 |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Assets | ||
Cash and cash equivalents | 1 | |
Fair Value, Recurring | Level 2 | Government bonds | ||
Assets | ||
Cash and cash equivalents | 124 | 115 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Assets | ||
Cash and cash equivalents | 251 | 223 |
Fair Value, Recurring | Level 2 | Corporate debt securities | ||
Assets | ||
Cash and cash equivalents | 39 | 12 |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Total assets at fair value | 4 | 4 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Fair Value, Recurring | Level 3 | Foreign exchange derivative | ||
Liabilities | ||
Other liabilities, current | 0 | 0 |
Other liabilities, noncurrent | 0 | |
Fair Value, Recurring | Level 3 | Prepaids and other current assets | Foreign exchange derivative | ||
Assets | ||
Other assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Certificates of deposit | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Government bonds | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate debt securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate debt securities | Other assets, noncurrent | ||
Assets | ||
Other assets | 4 | 4 |
Fair Value, Recurring | Level 3 | Mortgage-backed and asset-backed securities | ||
Assets | ||
Short-term investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Money market funds | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Funds receivable and amounts held on behalf of customers | 0 | 0 |
Fair Value, Recurring | Level 3 | Certificates of deposit | ||
Assets | ||
Cash and cash equivalents | 0 | |
Fair Value, Recurring | Level 3 | Government bonds | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate debt securities | ||
Assets | ||
Cash and cash equivalents | $ 0 | $ 0 |
Derivative Instruments and He_3
Derivative Instruments and Hedging - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | ||
Maximum remaining maturity of foreign currency derivatives | 18 months | |
Potential effects of rights of set-off associated with derivative asset contracts | $ 15 | |
Potential effects of rights of set-off associated with derivative liabilities contracts | 15 | |
Derivative asset, fair value after offset | 22 | |
Deferred net gains | 16 | |
Foreign exchange derivative | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Total notional amount of outstanding derivatives | 2,200 | $ 2,000 |
Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Cumulative unrealized gains | 17 | |
Derivatives not designated as hedging instruments | Foreign exchange derivative | ||
Derivative [Line Items] | ||
Total notional amount of outstanding derivatives | $ 3,100 | $ 2,400 |
Derivative Instruments and He_4
Derivative Instruments and Hedging - Schedule of Derivative Instruments on the Company’s Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 22 | $ 4 |
Derivative liabilities | 4 | 30 |
Prepaids and other current assets | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 21 | 4 |
Prepaids and other current assets | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 15 | 23 |
Other assets, noncurrent | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 0 |
Accrued expenses, accounts payable, and other current liabilities | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 4 | 25 |
Accrued expenses, accounts payable, and other current liabilities | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 11 | 30 |
Other liabilities, noncurrent | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ 5 |
Derivative Instruments and He_5
Derivative Instruments and Hedging - Schedule of Derivative Instruments Designated as Cash Flow Hedges and the Impact of Derivative Contracts on AOCI (Details) - Foreign exchange contracts - Derivatives designated as cash flow hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income | $ 50 | $ (4) |
Gain (Loss) Reclassified from AOCI into Revenues | $ 2 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging - Schedule of Derivative Instruments Not Designated as Hedging Instruments and the Impact of Derivative Contracts on the Condensed Consolidated Statements of Operations (Details) - Foreign exchange contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Realized Loss on Derivatives | $ (21) | $ (20) |
Unrealized Gain (Loss) on Derivatives | $ 11 | $ (1) |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 08, 2021 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,992,000,000 | $ 1,991,000,000 | ||
Senior Notes Due 2026 | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Aggregate principle amount | $ 2,000,000,000 | |||
Interest rate | 0% | |||
Long-term debt | 2,000,000,000 | $ 2,000,000,000 | ||
Debt, fair value | 1,900,000,000 | |||
2022 Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Initial borrowing capacity | $ 1,000,000,000 | |||
Borrowings outstanding, amount drawn | 0 | |||
2022 Credit Facility | Line of Credit | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 | |||
Borrowings outstanding | $ 25,000,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 295 | $ 240 |
Operations and support | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 19 | 15 |
Product development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 185 | 149 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 35 | 28 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 56 | $ 48 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Option and Restricted Stock Unit Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Shares Available for Grant | |
Balances at beginning of period (in shares) | 134 |
Granted (in shares) | (7) |
Increase in shares available for grant (in shares) | 13 |
Options exercised/RSUs vested (in shares) | 1 |
Balances at end of period (in shares) | 141 |
Number of Shares | |
Balances at beginning of period (in shares) | 7 |
Granted (in shares) | 0 |
Increase in shares available for grant (in shares) | 0 |
Options exercised/RSUs vested (in shares) | (1) |
Balances at end of period (in shares) | 6 |
Weighted- Average Exercise Price | |
Balances at beginning of period (in USD per share) | $ / shares | $ 71.76 |
Granted (in USD per share) | $ / shares | 0 |
Increase in shares available for grant (in USD per share) | $ / shares | 0 |
Options exercised/RSUs vested (in USD per share) | $ / shares | 42.12 |
Balances at end of period (in USD per share) | $ / shares | $ 80.12 |
Number of Shares | |
Balances at beginning of period (in shares) | 30 |
Granted (in shares) | 7 |
Increase in shares available for grant (in shares) | 0 |
Options exercised/RSUs vested (in shares) | (2) |
Balances at end of period (in shares) | 35 |
Weighted- Average Grant Date Fair Value | |
Balances at beginning of period (in USD per share) | $ / shares | $ 85.35 |
Granted (in USD per share) | $ / shares | 166.17 |
Increase in shares available for grant (in USD per share) | $ / shares | 0 |
Options exercised/RSUs vested (in USD per share) | $ / shares | 109.14 |
Balances at end of period (in USD per share) | $ / shares | $ 100.12 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Options outstanding (in shares) | 6 |
Options outstanding (in USD per share) | $ / shares | $ 80.12 |
Options outstanding, weighted-average remaining contractual life (in years) | 5 years 10 months 13 days |
Options outstanding, aggregate intrinsic value | $ | $ 541 |
Options exercisable (in shares) | 5 |
Options excisable (in USD per share) | $ / shares | $ 66.85 |
Options exercisable, weighted-average remaining contractual life (in years) | 5 years 1 month 13 days |
Options exercisable, aggregate intrinsic value | $ | $ 484 |
Commitments and Contingencies (
Commitments and Contingencies (Details) jurisdiction in Thousands, € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Dec. 13, 2023 USD ($) | Dec. 13, 2023 EUR (€) | May 31, 2023 EUR (€) | Mar. 31, 2024 USD ($) jurisdiction | Dec. 31, 2023 USD ($) | |
Other Commitments [Line Items] | |||||
Number of jurisdictions where company has lodging tax obligations | jurisdiction | 33 | ||||
Obligation to remit lodging taxes | $ 508 | $ 274 | |||
Accrued obligations on lodging taxes | 124 | 114 | |||
Host guarantee program, maximum | 3 | ||||
Primary coverage, host protection insurance program | 1 | ||||
Host protection insurance program, maximum per listing location | 1 | ||||
Foreign Tax Authority | |||||
Other Commitments [Line Items] | |||||
Estimate of possible loss | € | € 779 | ||||
Penalties expense | $ 621 | € 576 | |||
Hosts' Withholding Tax Obligations | |||||
Other Commitments [Line Items] | |||||
Tax liabilities | 428 | 521 | |||
Employee Benefits And Employment Taxes | |||||
Other Commitments [Line Items] | |||||
Tax liabilities | $ 45 | $ 43 | |||
Minimum | |||||
Other Commitments [Line Items] | |||||
Remitting period for lodging taxes | 30 days | ||||
Estimates reasonably possible loss | $ 38 | ||||
Loss contingency, estimate of possible loss | 320 | ||||
Minimum | Withholding Income Taxes | |||||
Other Commitments [Line Items] | |||||
Estimate of possible loss | $ 95 | ||||
Maximum | |||||
Other Commitments [Line Items] | |||||
Remitting period for lodging taxes | 90 days | ||||
Estimates reasonably possible loss | $ 48 | ||||
Loss contingency, estimate of possible loss | 340 | ||||
Maximum | Withholding Income Taxes | |||||
Other Commitments [Line Items] | |||||
Estimate of possible loss | $ 115 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | ||||
Provision for income taxes | $ 29 | $ 13 | ||
Tax adjustments, settlements, and unusual provisions | $ 196 | |||
Internal Revenue Service (IRS) | ||||
Income Tax Examination [Line Items] | ||||
Income tax examination, additional income tax expense and cash liability | $ 1,300 | |||
Income tax examination, amount of estimate of possible loss which exceeds reserves | $ 1,000 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income | $ 264 | $ 117 |
Add: convertible notes interest expense, net of tax | 1 | 1 |
Net income - diluted | $ 265 | $ 118 |
Weighted-average shares in computing net income per share attributable to Class A and Class B common stockholders: | ||
Basic (in shares) | 638 | 634 |
Effect of dilutive securities (in shares) | 16 | 36 |
Diluted (in shares) | 654 | 670 |
Net income per share attributable to Class A and Class B common stockholders: | ||
Basic (in USD per share) | $ 0.41 | $ 0.18 |
Diluted (in USD per share) | $ 0.41 | $ 0.18 |
Net income | $ 264 | $ 117 |
Net Income per Share - Narrativ
Net Income per Share - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Feb. 29, 2024 | May 31, 2023 | |
Class of Stock [Line Items] | ||||
Stock repurchased and retired | $ 753 | $ 493 | ||
Share Repurchase Program 2023 | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 2,500 | |||
Share Repurchase Program 2024 | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 6,000 | |||
Common Class A | ||||
Class of Stock [Line Items] | ||||
Stock repurchased and retired (in shares) | 4.7 | |||
Stock repurchased and retired | $ 750 | |||
Common Class A | Share Repurchase Program 2024 | ||||
Class of Stock [Line Items] | ||||
Remaining authorized repurchase amount | $ 6,000 | |||
RSUs | Common Class A | ||||
Class of Stock [Line Items] | ||||
Shares subject to performance conditions (in shares) | 9.6 | 9.6 |
Net Income per Share - Schedu_2
Net Income per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 6 | 9 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 2 | 1 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 4 | 8 |