ABNB - Earnings call transcript Q1 2021

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Operator

Good afternoon and thank you for joining Airbnb's Earnings Conference Call for the First Quarter of 2021.

As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of Airbnb's website following this call. I will now hand the call over to Ian Lee, Airbnb's Head of Investor Relations. Please go ahead.

Ian Lee

Good afternoon and welcome to Airbnb's First Quarter of 2021 Earnings Call. us joining for you today. Thank

shareholder today, On also website. our CEO, Earlier first Airbnb's financial posted a and quarter Airbnb's of items the have Chesky; the today, and and are for issued Stephenson. on call of Brian Dave our Co-founder Officer, Investor our section These we Chief commentary with letter XXXX. we results Financial Relations

remarks and time During then the brief the call, the we'll remainder on opening Q&A. make of spend

Forward-looking over it that we forward-looking on no a factors These turn Statements circumstances. a February Before SEC materially I'd everyone the our implied expressed call this consider uncertainties. Brian, these involve from I to remind remind in filed on and events or to contained and factors differ urge to variety in to to shareholder we'll update on of like XX-K Form that this reflect results risks in or you undertake described be statements may the subsequent and are factors. obligation number those that due under Actual to forward-looking making of our the with information XX, We call XXXX. letter you statements

Brian. pass letter in results. to substitute posted GAAP financial You We only measures performance. directly Relations a non-GAAP be shareholder for our guarantee call will provided aware Also, a we I'll most these of reconciliations measures the not the during considered should measures. be and with These financial statements be are some the that, should discuss future that to estimates And are GAAP to comparable not non-GAAP to website. this intended Investor call, our

Brian Chesky

business thank and difficult parts state this be position India. much, a was know to India year today. the on in us pandemic. spread work also none many are continue much fundamentally guests ever Airbnb was cases in us how All changed we're focus year will Ian. world And time. for the as to our limit in people sharpened It more want and to are COVID-XX We the such pandemic, of when forget. you, XXXX well. Thank changed And during And joining our homes of out that right. employees our a and to forever. everyday our by to of truly of hosting. hosts, core our start go by travel hurting. the do the we to experiences. special company. acknowledging roots, the There And as what as still and thoughts to the in very Airbnb: offer a we emerged their back host everyone, you who to is I we is lucky surge of we efficient stronger today. got back And people more

Our showed adapt. world as the changes, business we anyone to than rebounded faster able that expected, and are it

Now our turning QX results. to

Our business vaccines of rollout and restrictions. easing the some travel of improved the dramatically with

segments: two most cross-border QX to X% urban without of return important our as exceeded normal, But a QX, travel. increase EBITDA. desire travel, an it improved is our here Our adjusted positive was are of XXXX our expenses, to strongest of yet People's aren't recovery levels and the and conditions well. line This managed While was million. materially combined they year-over-year, travel revenue improved with tightly and the business $XXX fact: top growth historical improving. our drove In

travel tailwinds cross-border be to return of significant the quarters. urban and coming over the expect We

our profitability. Now our as to recovers, top our and are we financial discipline maintaining line our focus improve

essentially better This million million. on it the period better than year loss was was EBITDA than approximately same million a adjusted $XXX and ago $XXX the in same Our $XX revenue. was XXXX,

improving are variable we and results disciplined our our we're these our show being fixed costs, that marketing costs. with Now

beginning also strong the rebound. travel Our of indicates performance the

Disease you you means pandemic." Centers we significant a because Director the a strengthens of view stopped said, is Control of And the the people "If it that we be see rebound. had things this ago, are What few doing can are further that think fully hours will travel the comfortable to that Just for more start vaccinated, doing our traveling. you going

than XX just and now they're cities. travel, longer. nights for of do They're cities, visiting communities. staying smaller nights booked discovering People not expect longer. towns it where that and are the the be and also tethered any were before. going Airbnb, The about and going they In and unlike they're traveling that living more be back back or They're way don't to people traveling that location when was we ever of have very work. when one it means this before, people are these either. People not are rebound stays And rural People this XX have to to And away. is way QX was, now never seen to or fact, in XX% be expect we to travel. And not are anything same in our travel travel on that XX everywhere. to that we different trends are going to is the means Airbnb. going they flexible can never travel world is live what People time. to just

what doing So let to for ahead. we're me tell what's prepare you about

hosts, XXXX recruiting the guest rebound. is professing priority To the the about this, world-class our for delivering simplifying This experience, do prepare a service. in core coming we're to the educating experience travel of service. includes and end-to-end hosting, single more Our world

we're of against going briefly executing each how these share I'm areas. Now to

late campaign about Made people to February, the we're educating makes Airbnb different: We're and our large-scale First, we years, In Hosts. the world hosting. we what of by are possible hosts. guests being five educating benefits aspiring marketing about launched first hosted, become in more

bookers overall In running where received. up, are and traffic campaign, is up. being campaign our brand up, is hosts well from we're prospective first-time it's still markets the while favorability is Now up, is early, the traffic

our To on build the being up we Airbnb. redesigned we we've that's on host a momentum And and completely of making we on start Second, to it for the setting success. more an hosting. are of hosts. marketing recruiting launched campaign experience end-to-end are hosts, digital We're new accompanying anyone recruiting focused campaign, for easier them

are simplifying to exact trip. on we of experience. Third, February, flexible launched guest In guests dates It being allows Flexible in Dates options the their every part feature. while the a browse we

feature have guests feature who do on just this than since who at guests have the there a created. used since searches been Now higher more XX feature February we million converted And XX this Airbnb, searches Flexible Flexible Dates, new Dates launched, million not. than rate with

to are we our Now this of one service. finally, guests just need us, hosts world-class whenever the improvements And experience. many deliver guest is we or that making must

our our the we're ramping products, So rebound, protocols, support. enhancing safety we're improving our travel community scaling operation by support for to prepare and our third-party

Now a highlighting Airbnb we in May I up in weeks. want announcement coming by years. less XX the announce comprehensive On service two major to wrap update XX, than have the will to that most we

to to a made you show be going even is make fundamentally to this Airbnb. to of that travel going unveil experience. and share along we've on upgrades And a it on simpler inspiring ahead. how We're part updates more changing, easier prepare with host we're are special for going to guest what's insights As announcement, we

announcement Monday, the So XX. May watch the with airbnb.com on

summarize, pleased to So strong the results. QX we're with

we've rebound. the We that plan travel before. of travel our seen against are to encouraged trends will we for this anything XXXX rebound results, the by and think prepare this driving rebound think is the these And century. seeing we're travel are unlike We executing be the we

look answer and questions. your coming So that, and to is And back, with forward is travel ready. Airbnb Dave I

Operator

[Operator with Bank Instructions] Post comes from question first America. of Your Justin

Justin Post

guests. Company, I behavior to and guess want could hosts the benefit I focus which really first change, also on

were think but in with post QX, the encouraged seeing. really said you're letter, I listings like you're seems by it what it stable

next accommodations? some positive similarly you guests think us to how So over you is you market increase hit going and on to seeing you side, a you're year? dive with And what the Are expect lot -- this pandemic in of signs there? willingness and seeing alternative about is use maybe encouraging the tell then what listings the new hosts could whether do see to there

Brian Chesky

very you Justin. much, Thank

I why don't feel start? go. So And Dave, I in add free after to

and we'll to hosts, then guests. go with start let's So

listing. X.X host So actually if XXXX a X.X think And community? are Justin, listing. have million X just stable start let's probably more you They and we is had have asked million But ago, would listings million that I have we've year than what we we Airbnb. wouldn't in with about today million growth that. had large expected non-urban hosts hosts seen a X this time such And a in offer more what these we have people on

a So rental we as well. actually XX% have listings vacation in and growth non-urban

Now that we've our it's are is more reason to coming Airbnb of And made why Airbnb hosts, as hosting more well. important the as note everyday on and people, to hosts they're our XX% easier, individuals.

Now first we in specific to what global by years, possible Made campaign our Hosts. doing, we're launched five

many within I new hosts And we for of rate host. world. them XX% As point Airbnb even I we for significantly going after make We will at activation. of to at time, then allowing get make were said, making we to to a become started and be we Because it become gets time end hosting financial help May number that and other I and tools we're well. get is a that as were as I started, next number now conversion actually And hosts The to larger we is think are going looking easier something campaign. Airbnb, much prospective for them a And in And as to have are get started. hosts join this by super steps, we're on easier. of it we host traffic four out XX it Airbnb, XXXX. saying services the people just number webinars to even reducing of to of that accompanying service Great a to paired unveil of host a that to easier hosts think booking that's the in are And perfect Recession hosts that with seeing want easier reduce we be hosts of even thing these platform. successful. the days new Both the doing finally, hosts, hosts the at an in campaigns, I'll list many and tools for also many new have lifeline. people by have to there steps

industries are the you and hit Airbnb, These think are people occupations hosts hard. of that workers, I food really, been care on top our have educators number if really of hosts and think in about the health hospitality.

So what is one on our you story the to hosting, make is the fact of listing, $X,XXX on the average an Xx you check. can tell make which job that can you Airbnb American stimulus average got in have if

are are expect I going, the And on ramping. some these we're us to years hosts of So the getting just coming more and in started getting Airbnb. millions of things we get

Justin, also Now for as guests, as far cover I'll as this trends well.

are changes are before. think travel may the the employees it It's Probably headquarters back think before Number to things are we've going at is kind following: a this. And emerge. travel the different one, we're is going this to travel They're of not But go that seen least the anything remotely. biggest to I think As back ever other demonstrate before. to to two is kind pandemic. I going occasionally. coming travel I be seeing than the said is think I starting it new like the before, number way very did. that do Many that QX was rebound of results that is business don't business look I unlike working one, ever need thing true.

see to going in longer going stays cities. You're

going days. elevated the seeing flexibility. we're stays to urban in trend bigger XX than longer is so But bookings be of And markets for

to privileged are we're of the to is feature, feature. to travel can of more travel XX a have X feature use instead rate around enough Zoom to choosing this this "I live world a also conversion of pandemic. think the people all travel created Dates as has And say, want you a Flexible flexible a XX," to means world, us, use before three go We've Because a month it's this "I we anytime. than for weekend, were I why can the people more people week anytime summer." that say work of Number want somewhere a can us And this where This one, we anywhere. where world July trends. anywhere, where most had or goes if from million this, people we saying, over world July up. working many are of

The longer than increasing. In seeing length we're of stay were this our second period XXXX nights thing time, XX% of is XX is at of days.

are living. probably going And XX% our than you're this After Now that is days. that is of it's and X/X nights longer trend basically to of what traveling. blur living our What of a travel, is not I business isn't days, means together. think XX are XX to begin traveling

the So third the we're trend is second now everywhere. is And this traveling are seeing. people

just people it concentration and of a or look distributed cities, a you traveling it years don't communities, to many cars And the they and which much is even aren't getting XX same hotel. have are ago. XX because small more than they're couple rural the was to towns of revenue, in If at our of going is this

giving big So more flexibility. anywhere, People end stay. I'll here is are to traveling again, by just thought. one And the anytime, and are staying these We all trend think trends longer. they're

think travel missed people from shift because I to travel mass traveling. meaningful a there mass is

the really call In getting miss standing selfie from selfie a time of don't least the activities, say most business a travel. miss from landmark care travel. with my of fact at They we front And miss out they stick. they was the was don't door travel. meaningful away in miss line taken a surveys, about. stick in a spending selfie museum What this people they or people getting a thing in they is But with photo -- -- pandemic, the a that

and think We Airbnb friends a have We great do is really that. to families. way

to our seeing. are think trends cross-border. and has a urban are inverse recovery are This I tailwinds we see going those trends the to that for we're butter us. and going do pandemic, those The before the been the So of travel two and of recovery are are think I bread significant

Operator

And from your Mario next question with comes Barclays. Lu

Mario Lu

on The listings first one's count.

you we you expect quarter that that you eventually the campaign X/X with hosting to to line there Or hosts. last guys of said drive around a to is are When million. have should So But increase? that we that running, this similar guests past number become X.X you like number levels up? expect in time mentioned should that

Brian Chesky

well. And why don't hosts And it's QX, give I guests were now I'll question, Dave, this that a great also Mario. question? Yes. you in as say our XX% of prior

So hand over that But I'll number is increasing. you. it to Dave,

David Stephenson

to clear Yes, clear It's percentage. former were strong about been to be so -- former just listing X.X it's very on count, of hosts stable. XX% guests, It's were We're XX%, that the be the early. guests, new million. seeing with stat,

same churn in lower I And host even it very our that actually, XXXX than think, lower in our churn this actually, things actually one QX 'XX the is been in than what our of host was time in was XXXX. period is that's churn the impressive during XXXX. in

strong just host that that all resiliency just So I And think of we're to people as we Brian and rebound, it outlined, to a the as growth continue that shows continue stability just tailwinds of and see to all of forward. the our just continue things kind we'll educate the going of optimistic about benefits hosting supply.

Mario Lu

international. and just on follow-up Great, versus then one domestic

international will open sure even you yet, bookings So vaccine rates remain curious up? the as domestic you're hear if XXXX increase? levels above domestic substitution in some And I'm your terms not do of this seeing after think rates borders data in the if see just to but you can versus

Brian Chesky

Dave, you to as Yes. take one this well? want do

David Stephenson

just exactly mean where QX XX% right will for everything were out in versus domestic nights I our international. Clearly, settle unsure Yes. now of domestic.

consistent, So we've cross-border. world. the seen strength Historically, being travel has been the urban obviously all strength around our in domestic areas

know nights. been a -- that people that they travel. typical overall cross-border be nights So some urban state, travel with substitution our and strength. again, there's are prior these in stay about to of to not more will we'll have obviously occurring, growth have incremental going has think But cross-border many when where were trip. such cross-border our XX% of to taken of to going kind pandemic, be might clearly domestically actually our where a are trips We that rebounds And

the Just hesitancy, travel are if People lockdowns maybe right vaccinated, right? hesitant they now do some to borders. travel of or can't aren't to due they in

will trips that coming know we the incremental what back today. of and many seeing to will we're So be be

Operator

Baird. question with comes Sebastian your Colin next And from

Colin Sebastian

some gives on you Is guess levels? terms marketing that Is And I have listing what I are the making sales of or to off, your thoughts pace the and the of how the time what still first R&D or at impacting of in development second spend that? spend, it be and spending. without whatever perhaps a obviously, then now? plan? you in means development, couple returning be or half you you'll normal, confidence normal Brian, appears Or business product moderate product announcements look to to bookings questions that on soon. are can hiring? now But that thinking investments reaccelerating about

Brian Chesky

Colin, Yes. why at take a more of you a you very I level, obviously couple high much, and can Thank things. detailed don't go this Dave, into analysis? Colin. So

answer our question me and specific first Let about and marketing. very then marketing just HX I'll start strategy, talk your about

addition used in our think, integrated over very than First world. And And led brand Airbnb sales we I less is what the XX% really full the past And over different to and a on marketing and brand is marketing. mouth, direct last built this marketing. What similar because have approach recently being spent the and funnel in traffic that thing this noun really but approach we to as verb performance we traffic in XX of of iterate our our of And elevated XXXX have PR, quarter, take or that, with QX. levels a word even a all of is competition. all, XX% to PR, to marketing, a marketing. we years. we is And even as has unpaid marketing,

role education. you and if of the customers, buy of that that is of product think marketing The different, not unique is we is role So that a marketing to sizzle. isn't marketing role and the have

And so we're years. a it's campaign We -- in really called hosts. our makes from was Hosts. homes our first and Airbnb. we marketing what just real first at different, real photos did we level taking And trips what as brand want to have brand done on on possible is be global campaign Airbnb doing by a It five guests to our hosts real spaces mainstream is as which the highlight Made

levels. Now were so over results front want to money decided have on your of we said, I unlike the to the And HX, course the we early, didn't while traffic spending. seen any load prepared the rebound as other travel year. answer spread a still are for elevated question to HX we versus We

a So out right can Dave, timing of going we think to I also disproportionately put to And far demand product then is I as development possible. bear to the is be then that much high go And level? spending don't the seeing as in we're And as answer why at -- capture as timing. really you also HX in. this what

here's we've development, So what high learned. for level at a product

we structure. of pandemic, We homes. a divisional were had core our the Before business

divisions. increase we we on we had realized because had We other And we were And focused be product business got much, And is to see the number that's you able much our a We ago. what did on nimble, became despite fast. and a one hope smaller that organization, could multiple of It's was team hosting, we that us travel. product really move have on I also working more more years development two is functional and allowed smaller of groups. pace more we divisions, efficient. we many had to than being much that development. many the we've divisions. been when much of we had even We development a -- reasons the XX May group really, it And

able by are I to really think impressed going deliver. we're be what to people

in know a numbers. Dave, at high that's jump So the specifically level. I want you But about and if don't talk to

David Stephenson

a the fixed I have beyond. add will to lower Yes. than to not of resources going the to product number and size We're our mean XXXX development revenue. of spend back rate that's business significant at accommodate to in increase order back

to strength great and solidified to we going any disciplined And Brian just prior our we're just see actually during are as strategy, marketing success which in additions then with very said, QX. we're to our So COVID, be seeing continuing COVID in started modifying to expenses. here

this the the revenue we're the first So marketing of year, higher half the very in of half be it as a results. percentage of encouraged be will year second will early by but than

Operator

question comes next from your And Naved Truist Khan Securities. with

Naved Khan

you give timing. your in that in think that you maybe about do the the it? further of that's happen Brian, urban reopening of out? terms year? something half about travel might us How back this think you Or thinking of thoughts Is are

Brian Chesky

with that Thank But very was the of try things think what happens much, be showed we to with Well, that predictions, -- year for comments. humbled. I'll compelled last to one something model was last with inherently no be making is predictions let travel, say our careful Yes. me answer year matter is anyone because question. is two preface the one, you I Number adaptable. I'll my Naved, I'll

so changes. that to have data. With a do of we think quite any we I And are adaptable said, travel bit being

hard little pinpoint. we data I we're have the I seeing, some to indications, with think give to can be and it's so you although going And a

We cities. is as also travel the the We're people more cross-border and travel to changing. seeing that lift restrictions begins, cities of are seeing that nature

in example, are booking For and people stays more longer-term more cities.

longer And more stay home. of going up. somewhere, that the you you're one in stay So to is things is length the of a stay the inclined the know we

this vaccinations significant to that tailwind restrictions and as a cross-border lift we travel. think in as travel both think urban countries, rise, is So I

bullish. very, across urban be we're of the So very think head lifting restrictions tailwind reason signs. little a CDC really, this really these from comments are the but and the good hard cross-border. There's a to Europe, no It's huge of pinpoint, travel wouldn't I all to today,

David Stephenson

every do continues Yes, April this and so and to year increased our urban through early travel month growth rate May. has

So positive we're just seeing continued momentum.

Naved Khan

very helpful. quick I That's And follow-up, maybe if a may.

you maybe people talked maybe headquarters a just business Brian, an travel rent where and So about travel Airbnb. maybe becoming different to little might

Brian Chesky

Yes.

Naved Khan

a take do you segment Is there going share -- see a just in business travelers good targeting opportunity cities? previously maybe into that to versus

Brian Chesky

Yes. Los is City, do a majority we I we days New over stays XX for days. New than York nights many almost of number have mean the in now. in XX as City, stays XX longer Angeles, York days these In cities, actually, under booked as

huge So opportunity. I there's think a that

the are you travel want going about live but where to more If future, more to people to going companies they're to to think going flexibility, visit. around to as completely the not live is come have They're back me in offer that going business intuitive it all world, seems to remote.

see And you're so going to start to stays. I think longer

to I see travelers you traveling think may in addition business together. also stays, longer

the morning. Airbnb. different hotel three table the headquarters. dinner breakfast three split They can one work employees to eat -- in different different around might house. they cities, all at rooms and not come to get get the the have They cost. They in say let's three back So can They may

group the I and things general are two disproportionately business is Airbnb benefit business think, these So travel. for travel doing travel longer-stay at travel. things, tailwind and to are beneficial that home, think I Those

course, go to Now on I the of to to meeting than higher get a think I again. for will, I before. just plane want people mean clear. be business to be travel a will bar

Operator

next James your with And question Lee comes from Mizuho.

James Lee

increase supply questions do A by guys bit do little demand right hosts. And couple tools you're to Where by or you address and supply also and professional Where surpluses? what up you supply know you're supply? regarding And are your you looking maybe see are individual, see balance to into And I of you're deficits? talk looking a signing that to can about hotel region key new now tapping you also here? your side. XX% about these that hosts are even seeing for frictions the with introduce? secondly, the

Brian Chesky

Dave, do and pro demand? friction? can in probably I to Yes. you want and take supply take hosts increase key the

David Stephenson

and supply yet see Sounds summer travel and is the or cross-border of more seeing, be we're the rebounded, to would surpluses surplus especially supply demand, of tightening because peak not mean we're what places good, deficits where urban has be constrained And urban a on really, in yes. for the U.S. fully we I in that going markets. demand seeing can most it, non-urban of some markets. clearly the our or

go on as our for supply approach, kind of have those use and being enough of to But is before, maybe recruit that. especially and So using best then making hosts so more we're each against and in in doing are pointed where on working we're in we surplus we supply also not markets. possible as -- at each bring back targeted actively on areas. side, constrained demand, engine the peak search marketing marketing side, And where expenses supply we our periods to sure markets maybe that

look at over individual time. that So every as we market levers different we to manage and will try to different, use balance

Brian Chesky

say jump this. don't Yes. And and James, in why I

Dave that want said, things under, to the highlights. out of just underline I One put

pandemic, they most they were going when knew they where they the to exactly going. people Airbnb and were Before knew and came

demand be supply they supply "Where search where if to can't we You point the is for the to also asked "When in going?" are we are grail you holy demand asked, But able to predisposed point and we if they're demand. flexible, And to question put we to want guests travel. going?" you So control The bar, have matching in can aren't you date. where where

searches telling they're conversion it one why have. that used were most are demand is supply. things that of feature, they million where up. went have about when the travel, probably much us important point we Now rates explains This more Dates guests XX flexible Flexible the we we where And with can to

just to another is that I thing want underline. So

hosts that your million new million everyday because talk created created Airbnb next are tools providers said, for providers. thousands professional way comes stay. questions, being two out allowed Airbnb, a when on all Now and we regarding think X a a pro hosts, about of hospitality Obviously, of people yes, Airbnb. we category let's to have become looking in and X.X And individuals. guest hosts. is of individuals travel hotels. and welcome hosts we place to we hospitality about they're And it hundreds professional That The

And individual want hotels found But to they in for. hosts and have to them to to make what sure professional network and they hosts, so known we're don't want. we those Typically, our to gaps. serve customers without want having we that's leave for fill look we that come something

and So continue tools providers And to welcome onto our the benefit continuing these obviously going they're have. to services over to we're that develop I we from platform. new coming think the years all to demand

people the a That's probably game, we learning do make things we've far as as it easier, the it. the name as seen, becoming the to of we've of had make friction easier one people and key more main do Now it. host, it is more

are the some by support. they is to We're for to of hosts. make a have services really to become it And providing going And reducing hosting that better which easier innovations more even and on hard and steps it Before become show tools, making it, we're easier. made we Internet. once we We're to hard, on offerings your to People tools of the a offer going number we're rent XX, going did that home and tools was and Airbnb, host. of number easier. May number it hosts even

will I think of as things these well. so frictions all the reduce number And

James Lee

a you If I are on can also your for hosts ask hosts potentially maybe side, follow-up pressure on rate? the increased and question acquiring take too, seeing competition

Brian Chesky

take Dave, you this one? do want to

David Stephenson

seeing is Right our what are. -- back to hosts Sure. it what now remember, comes we're

platforms hosts. are doing. we million are individual majority X hosts around kind I -- million than different competitive those X.X of of very have those are vast so We The what see of the And think that's world. individual

I of with we thought. is me train And -- give up so the end million have we the question, what part of last my the X hosts seeing that lost sorry,

James Lee

potentially increased maybe Yes, and rates? pressure competition take hosts on for

David Stephenson

that. take that great have think rates. to we when to both that Yes, the able charge on that on back seeing give rates we give. appropriate We hosts, take what and a take the to the value sure in were not our now, hosts. rates. And no, revenue side see take really we take then our pressure is guests making Right we're that that give kind pressure we We from value the value of we to rate our good rates

we So any at on we're or not really seeing number pressure increasing driving Airbnb. for that of have hosts decreasing the that

Operator

your next Instructions] [Operator Stanley. from And question Morgan comes Nowak with Brian

Brian Nowak

two. have I

or past? or the doing monetization more to more take sales or of guests? is adjusting think into user retention or a listings, lot and on the new curious sponsored first XXXX, from how little add year ways those on that seeing about hear service hosts the that and we or the tiered that from ancillary any what talk about to or what around users rates can users now services in to you're potentially to a you've over to you was new time as you've one, be platform. users into us -- in a The It go rate XXXX the just bit take one take cohorts your insurance I'd perspective seen new you about great the of for a the compares of to to Then of the experiments can rate, added. the second booking sort been tests you're

Brian Chesky

rates? Brian. you second Dave, for I booking? from users much, and monetization on why don't thank question the new very don't seeing the on take take and are what take new retention Why users, Yes. you we question

David Stephenson

Yes.

the for new users, retention what the early, what is had that before. consistent very we're users So data it's seeing new all here with of acquired that but we we've is for XXXX and during for in the early XXXX users

of actually time. try just first XXXX did for of and come one kind benefits seen the for for in us to the So barrier is new out guests Airbnb we've I lower think that to entry we've to

a to hop on You don't have plane.

don't to border. You go have across the

have nights been As historically we of cross-border. over our XX% said,

try You don't have that to do to Airbnb.

check road And is consistent of and rates from Now you go very seen the a the hours seeing can just are kind results down retention early in out. of we're us drive the what we've couple what that with past. the

Brian Chesky

hosts. and And lots rate rate, take of opportunities then our and take absolutely Brian, see to guests monetization your and to for both question about monetization we increase

charged we've in of we've of and tools offered they're that haven't one example, last many services incremental, the For said is these for. five years, we the things

competitors, and countries incrementally as our charge liability we unlike of protection million services, damage property offer these. free theft, do these $X added all world. against over example, And we for the not For we personal in

general for more we -- increase principle value offer away than us always we but services tools to want and is do do there's to to to we're some opportunities more Our taking, give take think rate.

to we perishable said, focused being opportunity And is right rebound. as ready now else for be The focus travel and much that most before is is possible travel are opportunity. Now most critical. capture this on anyone demand as perishable the

So We making providing guests support. travel we're this world-class experience, for have season. we sure are enough and the hosts we simplified that

in year. no we're focused on make years where ahead. many So mistake, we opportunities that's this have the But

Operator

from Our comes Mahaney Mark with ISI. next question

Mark Mahaney

Okay, I'll one with stick question.

But in ability cetera, side, factor especially I issue your on your there on supply supply just is local And the larger on a realize address whether issue cities? Just travel restrictions to regulations of some rentals, of expand of constraint -- address that's fully. local hasn't the will the that of the new supply? increasing in whether et really how limiting recovered you a much is

Brian Chesky

this Mark, the Yes, again, thanks positive free relationship at a jump a our level. in to high in world. with can well. cities actually saw Dave, reset as all with question. I feel was over COVID we What take the for

collect/remit do see billion being cities, to $X.X cities the remitted We these say is could me I date don't completely jurisdictions. we sense, reversing. that have collected and around we of let there's bottle, COVID realized cool a see went two Because thousand have world. in start people of everywhere, of trend don't we very urban you from all even and with think out in cities travel communities What many hotels. an one, now Number recovery, top really small the rural number that things: few in which a happened genie's concentrated small towns, distributing saying to Though the XX,XXX taxes first, Now just by of transient taxes. occupancy

they're really so destinations. important And

The cities other is hit we've that of been effects devastating economic noticed, thing the that though, of really lot a have pandemic. by hard the

to cities have shortfalls. tourism So tax see of actually And of you'll major is major this, had out seen a what we're shortfalls, cities because reaching major lot us.

launched as struck year In Portal organizations, know just fact, Scotland and thousands to course of pandemic as which cities partnerships basically our well. partnerships we've last tourism we From tourism are the of destination the doing Portland, the over world. all you over XXX the City partnerships bureaus we been with to marketing cities, with to arms. scale And over

don't know, anything that. So Dave, this if what we're add want is seeing. you to to I

David Stephenson

that's think I key.

the of rebound. each that's communities. City enable Airbnb added understand positive of our help which last their their in tool been goes we work also with to this another another to with year like to is to Portal, cities on for business can feel cities economies think what We tool new And capability they

Operator

Kelly And with next your comes question Oppenheimer. from Jed

Jed Kelly

travel, mentioned I benefit? businesses from going are question. Brian, to talking terms guess, of you a ability of from in then to be, it's the guess making like, like to anywhere. talking where back would a number work as, Airbnb to through guess companies, two-part business anywhere work I of I sort you one And kind and follow-up,

based Your course, Francisco. of San is, company in

do work-from-anywhere you your if efficient save basically trend you the to So employees sort of the potentially costs more working to see more can Area? outside have make using how business Bay

Brian Chesky

two Yes, good really questions. these are

Let start the me with first one.

-- more from home, So kind over trends can they that year the any from out work and is Airbnb. last that often point as one have been has one pretty can home. flexibility, on more as the I remarkable they of people And of said, means as the of you work

the And XX, new to make to so type of even tools make one show it and we're continually be world. even any time of things on we're Airbnb, anywhere some And just we're on allowing the is top to with searching destination. of trying you more to experience search to and flexibility same for around looking especially new to we're you longer, guests the booking is able going to be easier the doing May ways anywhere, search people flexibility, go Again, at the easier. to able not staying

nights is, So we this at days. in XXXX, were other the only to point look longer And XX% booked thing are continue innovation going I'll XX%. area. XX of than think in I now to out just our again, That's

a of think of us. anymore. interesting And not lot us. a There's so think opportunities. to our really innovation huge opportunities for I is going of we this business they're even design-led offer growth We is area We're basically, for lot company a And think travel our X/X a heart. at

bit ago. principles. talk Number Now guiding employees base, our me a told lifestyle. them specific anywhere two weeks let I told model to our the employee about San couple a we of to there's want little Francisco one, I live what

So flexibility by lifestyle, more employees. modeling the our going for live-anywhere we're to allow

workplaces important. is is That So they office before. to I to back they're days a going incredibly flexibly until even in allow think have aren't are to back being next an people not five that going how light collaboration And every a going really People do in-person also come as to more have operate. when of to our week century employees, think going we We're do September. said, the come flexibility. office lot to told the come to company, don't most the that ask week. to to XXst We we expected be back, lot

modeling we that's this. between want and designing. get in-person So creative we're We allowing it collaboration. right. what find And balance to don't some to lifestyle the We want rush to into for want live-anywhere

to course year. be on next So that's going of over what working the we're

Operator

with Patterson next question Justin KeyBanc. from your comes And

Justin Patterson

places the update for can curious does the really it like and broader you question, inspiration and I'm the really this think broaden announcement to such prior around spoiling inspiration how sound drive Airbnb, about before. about the much spectrum platform they your do than think designed inspiration the on expanding Without opportunity Airbnb just on funnel Brian, discovery. provide is experience the to for as natural customer on stay about to things base they of travelers that starts XXth,

Brian Chesky

was -- what a what It on discovery little make to and the me correct? but bit we I couldn't was inspiring go I hard want just are end inspiration can question. Justin. you, to I Thank of do, you sure can the that more doing you where Airbnb, think question you, I drive and for hear to last

that. Okay. I'll answer

you click that lists "the by you're a to yes, go So if so of Get outdoors." are says, on it going airbnb.com just that launched homepage, right wish of Airbnb.com, on. is inspiration to going really type Actually if piece lists. you're curated of our notice And something greatest you our top and wish there's we we're now, to you Inspired, a art So focused see if big number Airbnb. on

things just beginning of doing inspire is to of a to we're more travel. number try this the So

On the going to page below you're can merchandising that we're now you that, see places go home nearby.

when of than if important you destination, on more and and May means wish more going you are to people we more are features say inspire home exciting new home you to flexibility. think going between for showcase though, May going So around that's some go suddenly I is to less that the inspiration. some you then of Because lists, XX, updates have people one flexible the we seen to continue you and the drive of the in. is about On we've then I where nearby where the XX, travel becomes some think that of are travel travel, kind things type what is

is we and this can how show about if on. the of thinking so in, things tune working And you some it, can we're we're hopefully, you

Operator

Walmsley question next Lloyd Deutsche your with comes Bank. from And

Lloyd Walmsley

I if Two can. questions,

your this medium of, nights travel past term? talk blending living stable grow think listing night of value wondering seems way occupancy of season is one, rates or then nights listings? you kind pretty about notion high the increasing per looked demand second room the years. like more of room And you in about getting or excess booking It over the existing in where can out listings, over can few kind First, per like, of the a you in been how average and really shoulder But active if of it's XQ.

the region, normalizes how onion maybe shift? mix ADRs as back the peel within of as type, do that same And Or is a same-property and you just impact bit? this If up? travel How the are seeing look you most you think pricing going forward? about this would

Brian Chesky

Lloyd. Great,

first of the will we we is a global matching a the at to up on lot at take get in because on to they're why the Occupancy to Dave, place the The of to show name same line whole landmark That's the game try question is you I'll bunch second basic answer the in a travel better classic So question rate. your and place rates, as yes. is same time. average Paris going of supply one. the kind in up occupancy can go level demand. on you there's think, go at to same of people people summer, date. and same The take the when

you point to you went Paris, France, money other a hosts shift as -- one community. September, we to, point them more place, XX could that or thousands and or for because know they -- cities could point we fewer we going when to there. travel, So show I you going from can other same some And go But you deals. them, or in length is to two things increases, get can in become people everyone example, can places increase up we people to more there's stay communities, can or XX Or Brittany we do. of lot add to you the occupancy to demand save of flexible can instead you of We July. want to if We as places. there's to as can can people then show of in the rates, make we'll

increase want there's ADR. out of with I revenue. don't which supply, opportunities a have to Dave, steadily increasing So available can point to lot to you supply is of if don't know think, productivity have. occupancy. the What supply allow where we we need We demand increase us take that to means linearly I And get for we us, will it to more

David Stephenson

in one U.S., The up been mix. increase ADRs rate. of QX has And in average up higher driven a driver larger in were which majority the of even those year-over-year earlier XX% non-urban year-over-year. and being is ADR a XX% The significant was been by That our rebound after Yes. whole average, is the just, higher ADR. homes, It's each daily on in and has QX. home

markets that the we're So the period, highly ADR rates seeing within ADR will that look from pressure majority up. time constrained we're some is mix. in of drive When seeing some there you a actually at highly constrained pricing

by So is mix. the driven vast majority it just of

Brian Chesky

just And to thing again, Airbnb, also as the increases supply. yes, I'll other thing another that correspondingly on say, -- demand increase say is can I is want

guests. Airbnb in XX% things as started That available of guests in XXXX we in our published the was XXXX. our one available in in new XX% that So S-X were increased our again, new out of hosts hosts to

really So demand have we think interesting can we flywheel where a there's we supply. also point where

add to number muscle increasing, we also lever for hosts, that's guests us. And big have can and another as We hosts. a to keeps but that continue to convert

Operator

Thill your with question Jefferies. And next comes from Brent

Brent Thill

some you way would just comes means. of and shares. it to next But I around know don't that There's frame any be Can that could helpful. there that? give fear what color could you of around you you color just unlock, this of been any is million -- are close all I add unlock any XXX over the know can eligible. Dave, the final week not those

Brian Chesky

Dave, Yes. want you to take that?

David Stephenson

Sure.

been And our deliver for of is outstanding and value booking for outsized driving what results, to gross try do Monday. revenue So make profitability. unlock sure deliver kind comes clearly, we've doing, thing is ready on we're unlock, that key which to to that that the we're doing

a So you more I there's not that. can color the unlock lot Monday give beyond on on

Operator

Fitzgerald question Fargo. from Wells comes your Brian And next with

Brian Fitzgerald

experiences, wanted to linkages ask there, there, us dynamics to to with if supply online anything with you're rates We experiences? could versus respect offline, what tell you travel conversion seeing

Brian Chesky

very Thank for Yes. much you the question.

here's in remain a year. very, year back I over experiences. turns long came thought what last the of experiences XXXX, breakout bullish term. year products about We be very I'd It experiences beginning say When about hold. really very to out had a for We So would on pandemic we put the a experiences. was difficult

reasons is five-start with pandemic guests experiences and because a review remain higher leaving the we the of time five-star a leave But bullish of remains of is the homes. than for review for percent experiences. was who difficult higher One a guests percent

coming be that years, experiences in at restaurants because to launched living to mass room. there's operating going will leaving we experience bars, is am So tour And online the an your fewer capacity. experiences, There's I lounges operators, which way the without successful and be are fewer thinking that have full alternatives.

on this do a window, one. game and we think we're there's long the playing So

Operator

question Suisse. comes [Operator Instructions] And with Credit Stephen Ju from your next

Stephen Ju

Okay.

the last asked I to Brian, of competitors So question same one your week.

So in a what is of I'd be interested macro more your probably opinion consideration.

levels, at States, for down going consumer all to, widen likely to savings it's the this of for World War which years. been take some the several rate, highest all accelerating up of consumer level the the guess, of be least at So probably I normalized since It scenario brings next II. for will is one United travel. dollars spend in is the of the time destinations probably to in these And hopefully,

just of, what of Airbnb, seeing but in the expensive upgrade to the here? recovery, So general know frequency up we to stepping the it's in say, are I as early maybe, recover guess, you terms in I days greater willingness or more

Brian Chesky

Very good Stephen. question,

so Let tell you me far. what seeing we're

in in the surveyed of we travel of beginning United the did things people States. surveys the the year. is we And One

see what around sporting the than out-of-home the more able to kind not found in surveyed that travel. mass not time the our people going of more The just more It we most, also more concerts, world. was people during people business really travel. crowded was restaurants, spending destinations. than activity than people events, pandemic. It bars, to that is than they've travel, been with travel surveys, the We missed was was And not missed

was was I us. yearn just taken us. time away think And spending for that we and was people what that away something from generally travel with taken from

a are with willingness Now seeing is we the cities. in another mentioned, studio does your the have rate as We a United were maybe about material in daily consumer to upgrading? regard of this saying sense States. people give people spend. seen, average booking of in increase Maybe it before And pandemic, us apartments to the we way question

pretty typically number big considerably. what of more of per has Now seeing expansion homes, people we're entire is reservation guests bedrooms, a even increased the booking

money. are people spending so correspondingly, And more

when sustained But see recovers. and think that question. are urban time do think normalized to period course, trend, we I other that I of confidence, will of recover going no there's some over get geographies

Operator

from And with Mathivanan Wolfe Research. question Deepak your comes next

Deepak Mathivanan

quick of couple a ones. Just

you trends booking recovery that right quarter on happening then sure the programs Are is be being that that if markets digital the this on there the hosts? bookings Any second usual? in great. So you provide than already second implications in pulled of lot color a and wondering on by mean and thinking that, North question, asked Is that earlier can window the summer you would already. Just first, Europe not does was in are even can How on half? if about marketing these There's forward capacity? America. second can about channels? the add targeted some now talk like now some insights Or and you performance ROI of

Brian Chesky

Yes. you take don't two questions. Dave, why these

David Stephenson

Sure.

hesitant booking 'XX here we've window, expanded. March is So seeing in they going from we window, QX booking They consistent the they started saw travel. in What have travel. March, that right? of seen had windows confidence when those to obviously, regarding dramatically, actually XXXX windows XXXX. of to only People in shrank early the And we're with booking were high the were booking booking

expanding. And so the windows are

think the what U.S. seeing still I in you're more is confidence even that

April booking of the of than in in some further growth year-over-year expanded business. of things acceleration as the has beginning that European and of And including window lockdown through the travel see exit year, Europe. the So seeing We're U.S. we May. lockdowns starting And that the to the the our the it European acceleration the in started U.K. year February, we're willingness rate Prime in seeing France month like every we're plans nights removed. But has of and the since to in increasing greater Minister are seeing more Europe. announced after

make one. the the levers once target to back positive host about of then Again, hosting, year. thing it's where more of areas to When the and digital So benefits want that easier and channel. in this it. for us the we we're to we the is it's for other But one, it. kind we'll a one like and hosts, on know encouragement marketing the would the one regarding on lockdowns going it it them acquire And ROI just half. of supply-constrained have for we what educate and for investment primary focus Europe important considering restrictions kind have. the that to not digital give channel, see is do through to hosts, in for they the are back are booking return see step only we half the we established And but hosts targeted of and value start the and is people trends it that window look be what that and for back of of specific We not for the marketing travel that most then

Operator

your Kevin Cowen. Kopelman comes with And next question from

Kevin Kopelman

it bit could one, more past? listing with a quick on us this flexible you being think the trends XXXX rate give average A in was cancellation than the update compared little year to an I

Brian Chesky

to Kevin? for You're welcome. take want Dave, one this do you

David Stephenson

Sure.

substantially that They've obviously to moderate XXXX. versus rate. were they cancellation elevated were they elevated in so still below begun XXXX, are the XXXX they're the XXXX at So versus but sequentially rates where moderately in

than not more returns bit but to So it's quite a normal we're seeing historical rates. level

Operator

Tom D.A. Davidson. White And your from next question comes with

Tom White

second on Just of specifically and recovery cross-border. color your up one your of half. different there's moving expectations between ADRs some markets, structurally some but letter, of the recovery from I in me for all pieces unpack thoughts to the lower follow kind the and the and the there know urban ADR on in maybe can kind you

back the how nets you Just to your curious of it half? out, hear on in kind thoughts think, all

Brian Chesky

this give I'll Dave, Tom. Thanks, one. you

David Stephenson

back year. confident going we're of best We're look QX I itself guidance pin there. what gave -- that the hard it's the QX kind precisely that kind rebound it's it's the some Yes, in expecting of to call in half early of is to down and it's earnings harder that we thing figures where highly are to coming. are have because Sure. But the the actually that indications All think at to of the basically be visibility the do. in going do to

in expect we breakeven higher XXXX, our that in positive that will in So be QX of our some year value on booking this QX out adjusted what we that perspective will than And be in did of our of QX. be this and our XXXX, gross is rate do give that what is of to will EBITDA revenue will QX year. to and similar be QX EBITDA -- that slightly of

do mix. but the ADRs said, at will expect mix of specific So moderate, the come I that to we think comes on And things. as in kind as back, ADRs. rebound comes those Because perfectly back the it's hard to affect the which pace back key geographies are pinpoint of the those it you the down that

Operator

now I to will turn remarks. management closing over the call for the team back

Brian Chesky

recap. thank for want to you, Well, us joining right. All everyone, just I today.

the they're adaptability our really are adapt. year world QX believe We results. of as strong And the a We over testament past we've focus our the our Airbnb proud and model. to changes, shown can that of

travel now we're think ahead. rebound positioned well the for I

hosts be well. travel returns, as will will be ready, ready Airbnb our As and

May you on share where So years. most update I hope the in we'll you'll and service Thank is us comprehensive we'll you, travel to Airbnb see XX, fundamentally join how then. announce on insights changing and XX

Operator

This concludes conference today's call.

may disconnect. You now

Airbnb (ABNB) 14 May 212021 Q1 Earnings call transcript