ABNB - Earnings call transcript Q3 2021

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Operator

Good afternoon, and thank you for joining Airbnb’s Earnings Conference Call for the Third 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 Ellie Mertz, Vice President of Finance. Please go ahead.

Ellie Mertz

Good afternoon, and welcome to Airbnb’s Third Quarter of 2021 Earnings Call. us joining for you today. Thank

shareholder today, On also website. our CEO, Earlier third Airbnb’s financial posted a and quarter Airbnb’s of items the have Chesky; the today, and and were 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 Q&A. During spend remainder brief the call, on we’ll of opening make time the

under I and Brian, statements in to this no that and reflect would to Before Exchange a variety obligation I from to turn shareholder letter or described in this making Actual on call circumstances. over that recent those with everyone statements to number uncertainties. implied a are be subsequent you remind of information materially the update factors urge call to events like factors. we’ll the our may forward-looking consider and it the or remind and filings involve differ in these you Commission. Securities forward-looking These results expressed contained most on to our of statements undertake forward-looking factors risks we that We due

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

Brian Chesky

EBITDA travel really third joining that of everyone. began income this surpassing The a highest of larger Ellie, Net by accelerated Thank highest was right. ever, today. our nearly our exceeded year share our billion, billion earlier Xx Airbnb’s quarter. XXXX with results I’m to with best XX%. and you, $XXX also All Revenue $X.X you. QX in ago. million our best $X yet. than Thanks Adjusted ever, was quarter excited the rebound year afternoon, for ever. good us

basis QX of Our EBITDA XX%, X,XXX was XXXX. an compared to XX%, increase or points margin

we summer, since milestone arrivals. has This cumulative the also billion reached Over one we one been billion started. times major that with more a means than guest used Airbnb

I’m finally, report quarter. to our a $XX.X delighted earned record Now that billion in hosts the

and the despite is North that of growing show results in the travel We despite continued America Our and the an here EMEA pandemic. strength in of cancellations. acceleration Latin rebound saw continued America increase strength sequential

flexibility announced the work more accelerate. towards Procter it only a companies this an undergoing flexibility makes total tens PricewaterhouseCoopers XX%, in by companies remotely people more Zoom Now live and value largest ADR. for expect Gamble, found Booked for has Amazon, follow from ever, have something like any live in because believe and exceeded And of excluding months, anywhere increased driven Ford, shot will possible In of booking of home. and make we anytime, APAC, revolution how Gross Technologies billion into The go office. that’s travel a work anywhere happening. first we work we we from to revolution untethered bringing employees the Airbnb. travel that for some a now any is this flexibility And many suddenly The it than bigger XXXX rebound strength above on of need trend & our recent world’s how to can world is time $XX.X and from But by the this. levels. of about Experiences XXXX’s new possible the Airbnb travel, pandemic global length Nights of to people home. work. to even millions levels millions

this result And trends a several travel revolution. as our we’re so seeing what of

have travel can at can and anytime, they office people when flexibility be people because First, more travel. many in don’t have they times, specific to the

the increasingly are and currently fact, to week, weekend of days families highest Mondays travelling traditional So traveling trip. in the really outside is our are And week This travel. growing Tuesdays interesting.

we’re are literally that The people trend everywhere, second is seeing traveling everywhere.

first Airbnb. XXX,XXX includes booking During at had cities X,XXX Airbnb. received that the ever pandemic, on have And cities that towns booking on least and one over their

category People or vacations, trend fastest-growing Airbnb, now other relocation, third aren’t people Airbnb Airbnb. many housing, is housing up reasons. trip remained seeing living we’re they’re more, days traveling student just length. temporary are in The traveling stays, XX extended by our on Long-term and for

interested were with We more also for finally, people ever, ended hosting are in before. two than there listings the reasons and ever most Now active this. QX

driving First, our demand is more supply.

initiatives highest our our destinations, and marketing product in fact, In supply is highest to EMEA. working. hosts new North our attract demand growth are and particularly And second in America

improving it Standard of release to and make constantly this next another of innovations the Pacific new support aspect announcing and will traveling service Now to which introduced be of it service. which the XXXX Airbnb AM that our guests, at Airbnb upgrades May page bring. and we’re right and Time. November the Release we’ll release, watch it XXXX XX Airbnb more include can every Tuesday XX, Winter across easier included X, X:XX way guests On next of wave host XXX Tuesday we at needs our is the On meet will home this you changing and than upgrades

what really and in you So, to I share. I’m hope about can to see we have excited tune

turn to our XXXX on plan. progress our let’s now So,

the this hosts, and in the single To perfecting been hosting, travel core priority rebound. about we’ve this, XXXX service. been a reminder, to guest do our experience our delivering as includes world-class the prepare world has of recruiting the simplifying Now end-to-end more experience educating service. for And

give let you each on these. me of So, an update

large-scale Airbnb makes year, about marketing by hosts. different, in what possible the hosting. campaign and made First, five years, first world that launched we Earlier this our is are educating we

the continue educating being about encouraged and the to be also We’re benefits we we’re hosts, campaign. people guests hosted, by results to more of inspiring this and of become

recruiting more them completely May start countries. hosts over simpler we’re can hosts host flow now to be Throughout to their a began process, redesigned makes answer questions with potential for languages Second, paired nine for setting onboarding anyone a We the Superhosts the in up since in XX, concerns. it hosting. success. launched we expanded that On and or Superhost to we’ve program Ask XXX XX and countries,

to flexible when about guest when Airbnb Flexible, they’re on are where I’m we Third, year, experience. this we’re a guests traveling. of every or simplifying introduced Earlier the new part way whole search

launch, than used times. XXX since I’m have Now guests Flexible more million

more to the feature flexible we’re expanding range space. due soon of this it by categories making feature, this well Now even the as unique as adding date popularity of of more

host And the giving us, service. whenever We’re in of access dedicated North Superhost hosts guest we a or this feature. experienced must progress finally, we most our to deliver most world-class experienced America, support fourth, agents. priority about really excited need In September, launched support our

We’re the by end of expanding the all support the Superhosts year. globally to

our plan So that for XXXX. is

became Since after that team the go Board Chenault. I years Ann Now, to Ken our second update director then, Three guidance. have one benefited our has bittersweet. to Mather before I ago, join from questions, independent her

departing and to means she sits Directors on Board be the XX. sadly for Board the number decision Now Ann reduce that us she’ll made on, of our December recently of

to been of midst Ann another We I soon done. Ann, everything in as has possible. a no independent global want I task. done. is again team being on that from know the to company, easy our a once she’s thank we Airbnb and adding critical Now appreciate you, the a pandemic to everything forward you’ve born look a of for And as transition as member public director private we

So is were are Revenue, traveling best to and QX recap, taking on income even longer more undergoing People trips revolution. net ever. and quarter our now living EBITDA Airbnb’s a Travel to locations Airbnb. highest was adjusted ever.

to innovations alone. world more upgrades this made XXX innovate. than we continue the As year We’ve changes,

your and forward So with answering that, Dave to I questions. look

Operator

from from Thank Sachs. Sheridan Eric question Our Eric, Goldman please you. Instructions] ahead. go [Operator comes first

Eric Sheridan

Thanks bit on get It’s love behind and big so innovation the color taking would as investing what much questions. you see little to Brian, a terms been of year a more in for supply. the growth and supply those they out how investments inform And the thinking Thanks. of years in some be from can key marketplace. the about into should innovation ahead. rolling the learnings way investors

Brian Chesky

Thank Yes. very much, you Eric.

been this So great has a yes, growth. for supply really year

majority to listings are today and our they vast have give never we just provide. share on And We for more are individual. we easier one, more supply. the thoughts hosts, we different our could on and than and means that found posted, important are And listed we XX% will it’s hosting we we more few the not Number we Airbnb. million people tools a four of if have competitors. know people on And active ever Airbnb, only that more quite become about have. hosts hosts. That hosting than support, Airbnb make as if host have

starts strategy our full hosting. making know so life And sure is a with people about It cycle. more

You mainstream. see the Airbnb brand very is

hosting now mainstream. is is world, the brand – all as Our over not but use

great Airbnb thing by trips campaign what real about that thing we year, from that also first our real ad doing hosts. that host raising five Airbnb possible host. did uses we’re more so And in years, It different well. to to we’re highlight brand is The the as This made about track is hosting. makes first in is photos awareness able to

making easier we to to XX-step radically and showed So the their awareness become a it the is then is to May starting low of space to to game number a easier once the on made we’re we’ve able where And host name host. host of rate simple and people up. conversion XX, leisure steps reduced hosting, increase for process of it

them host help give support. going Third, to if a needs we’re

Superhost. Ask So, we a launched

what a to innovation means XX,XXX since their Ask increase people with in on XXX the globally. a from us. best is we see in What feature continually prospective Airbnb. Superhost host. investing and of we’re more becoming a this to continued you’re launched business. tools pairs is expanding May, our that allow to an finally, this, expand we’re And Superhost we’ve this hosts than this countries going have And And number to now seen prospective more used all of very hosts host trajectory

want occasionally. On on Eric, following. globally is vast I majority we though, hosts the only just point, Airbnb, other [indiscernible], constraint the to ever The supply make rent

supply. the demand have to grail is of pointing where holy so And we travel

searches they Before to And fixed an million this the have we go in pandemic, office, don’t the can flexibility. people guests XX% and power most we that a searches, had to them being their back where on mind. have many in More were Over of when point than means dates used mine flexible. because had is But our flexible to more They traveling. now this are And where of destination XXX people of or very they’re supply. they’re search parameters. flexible. have

this So what is we’re doing.

on supply have plenty And to focused we’re full we pointing I that have expect We’re we’ll to where to a supply acquisition, approach and funnel demand supply. of years come.

Operator

question from please comes Mario, next Barclays. Lu proceed. from Our Mario

Mario Lu

for more. long-term Thanks question. I Great. a XX on stays have the couple and taking of the days

it then. level, the But Thanks. XX% slightly a these the And that attract that was mostly how quarter, on higher since due I Was think mentioned larger time? first channel guys You stays XX%. over updated around in at to could large it XQ. within seasonality views this then was any roughly declined

Brian Chesky

mix about Yes, the Mario, more I I Dave shift give to the spent Dave? little to why strategy. broadly bit a don’t talk and

Dave Stephenson

be one COVID, majority of simply fastest-growing to be remains parts a increase It the The That that are we of coming back. business, stay the of the – kind been during stays of pre-COVID strong continued it pre-COVID. and to remains just decrease long-term has seeing still it today. in is of Yes. era is trend the our short-term strong

dollars in to long-term back. the this to And we long-term of with – short-term so long-term decrease overall hundreds opportunity And think market is opportunity long-term opportunity terms continue the TAM space. our yes, market stays billions state the of stays, adds in fact that just of come of

Brian Chesky

few share just We’ve I’ll thoughts, a more shift just in travel. a And seen major Mario. paradigm

pandemic. in. What Before is were of our business before fastest-growing saw the short-term that long-term the even actually primary we pandemic, really stays the segment stays we was that business was

just which I a pandemic So, already trend. category did an seeking think classic permanent stays inevitable was a There or what housing at I kind at what weeks emerging and has between this this. time is accelerated time. traveling pandemic the done And really accelerated people the think even of has was months of

going during people year, families during as more able to the go they as bit longer Even a see can’t be a may going We’re with little flexibility. away well. people they lot to travel have away newfound summer who

add is the So week And than nearly well. other this is really for of is exciting. just a more half I’d only thing as our business

categories. So these are really exciting

segments. I a amount of think different growth huge these there’s forward for going

Mario Lu

Okay. Thanks.

Operator

comes Bank from question go from next of the Our of America. ahead. please Shi Jen, line Jen

Jen Shi

Thanks Jen the is for Justin. taking question. on This for

mentioned so you’re that like and gaining supply with host in popular very America you guys Just initiatives, wondering, North Europe. the areas

Just maybe wondering, comes just one then rate cross-border are back urban in seeing we the in on shift think mix follow-up years? kind and as supply up travel, ADRs, should take And you marketing how impact areas? of And and about to future on opening urban margins spend. the

pre-pandemic you has this obviously, a trends, been have Looking super spending, there. leverage at positive compared to spend marketing of lot year

wondering, more Thanks. on marketing travel was scenario would hotel see a where you to aggressive Just back? coming maybe you do if be have

Brian Chesky

All right.

So supply spend. I you The think is heard is in thank do mix take would you then you, next take. for to Dave, three and questions. great want these Jen. at growth One ADR marketing to I be it’s about these? impacting urban. shift,

Dave Stephenson

Sure.

year have supply up and of why one call there’s is of we where America North – that’s we in things Europe demand, the because growth when nonurban again, remember gone is – that’s of on biggest since why the get and demand. highlighted and the supply that on the reason our beginning terms the in to also the we the In XX% it’s the of areas that the kind

obviously we’re seeing areas. greater in more demand urban Now, pickup our

of percentage nights. the the So urban of increase our started area nights XX% to now in has made or

maybe We’re still of our pre-COVID. nights XX% kind to down of

more the coming we’ll so to keeps And areas demand as kind growth in of continue see urban listings back. those

the growth need below that So easier in But on full incremental to to supply don’t XXXX. back we’ll demand, the that get that for we think important until and we’re follow supply because will it it to need we’re board. is nights we come new I again, we back the still our make continue when part actually had we supply because demand

this the average last been high rate of has the In by ADRs, and terms of of forward-looking year location. throughout mix primarily daily types we’ve seen space driven the

the demand daily larger Europe more driving of and price have those it’s rates North in average reasons And seeing home, all a bit Non-urban with other the So whole start America a been mix up thing higher rates. high homes, some little areas. we have overall. in QX appreciation

sustain some anticipate like moderate we will for the and the Latin urban combination so to And price was some back, and markets the is have of of QX ADR we as And of do it Asia both believe what rates. average ADR more the mix stays which a appreciation. We overall comes lower and anticipate future. of some, in America, types daily but that the also higher of

then So anticipate the is consistent ADRs say in we in relatively QX that also letter what in that the in should had here QX. terms did be we of our – shareholder we ADRs with and

of really the terms adjusted marketing that marketing, with approach we’re we’ve In taken. happy

in reduced this that Now pre-COVID pre-COVID. our quickly, We our change a really in more the were shifted modified – we’re pleased results. search-engine where marketing And we just then And those again, with on Airbnb. we made, COVID, of began our have more And that we brand and strength. approach even to marketing. strength was is invest significantly reliance we

and our happy and talks and this broader sides made fact guests to – to to of to We’ve to continue we’re well. by the want Airbnb, going this the marketing to been mentioned, stand results relative talk of year, rate our those really strength plan with new possible campaign, both host why talking It marketplace. gets about Airbnb, recruits you’d about that given business both has the that. increased quite As our brand it Brian hosts, just

this And had we will be it a future. this a foreseeable – down revenue anticipate And expenses of basis, range from as marketing in we so kind percentage for – the are of our XXXX. but should that in on levels relative

Brian Chesky

take And really verb our can full than marketing approach strategy. used even you And briefly a of because that, word different just more is vast marketing really this, to noun share have build just really funnel the enough it and PR we Airbnb how our a integrated a the mouth. And QX. marketing unpaid and and I brand majority PR’s the of We have of was the free years competitors or traffic a world. of to recap of that’s starts at all strategy. And And word than well-known budget. of really XX% with really mouth for before brand over in because our a the money

of the Brand about And people really educating think laser education. are balancing differentiated that product. way to the us It’s customers. isn’t marketing so way a performance buy marketing demand. we highly marketing on in for then is and And really is supply really

think we unique think to time, over the think investing amount And will it’s that And really of all approach. really about just the increase. the in only this brand So loyalty a our we brand. is I continually

Jen Shi

helpful. you both. Thank Great. Super

Operator

question now Kopelman line from Canaccord. open. from your Kevin, Kevin Our comes next is

Kevin Kopelman

you the fourth give Thanks a trends us quarter, lot. It’s booking Kevin from of a quarter-to-date. the Cowen. Can sense in

XXXX, of be in the the slowdown, growth in you yet same terms You would in Delta to mentioned as seeing letter, acceleration that compared back that kind just quarter the of helpful. to are shareholder QX levels given

Brian Chesky

Hey, the to Dave, this? take you for question. want do Kevin, thanks

Dave Stephenson

as borders of more travel. business open Sure. people more willing are what are strength we’re in vaccinate seeing growing kind strength starting is up, the to in to continued

to sharing call growth, is it of be strength, that to increasing our don’t booking and We’re guidance on see There going And we’re overall from the today. accelerating. that’s booking value QX gross variability but gross I percentage a estimate we’re seeing rate on be continuing to QX. we’ve the that’s growth shared. bookings included in specific that some have why can what’s

Kevin Kopelman

you. Thank

Operator

Our open. comes next now from question from Suisse. line Ju Credit is Stephen your Stephen,

Stephen Ju

Okay. perhaps I’ll users now data, But data who and you anyway. go registered get get children your start have to to don’t demand this ahead younger have to able younger if vaccinated. of Thank but to say have Brian, know are – incremental what perhaps percentage you a ask until with parents for U.S. waiting you the for much just kids? better trying able not pent-up traveling were feel I’m how may sense you. about I more

Brian Chesky

Thanks don’t think can I I but specifically, for data of just the question, couple thoughts have share a high-level we you. Stephen. that with

that a XX the I turned new think months taken was tend that going think I to its away them. – think we’re what many for yearned have And people travel. be to been world entering that of age has last the I been head. from on golden

to from Now anecdote people, the one not And to taken lot data of travelers point to everything for X nights coming when that I spike would and just the think States. stays, freely But borders crossing the borders Within want a want back in borders. I the announced borders is that we November from the that ability was the of XX% or one for travel open. one booked of that. away into was they international taken stays later, one announcement, Airbnb October reopening Biden or which think States the we is ability things believe on Do that’s United cross ability on come and United you to give saw week that XX, us. and of I all away freely President for to travel the it date travel a

across kind seeing are of board pent-up demand. we what the is So, evidence of

cases think exist to the all is in to here I I flexibility that new stay. think stay, are Airbnb emerging use because here

Airbnb. I XX% getting But I of the cars of It I Cross-border of the lot Tuesday. I’m travel. nearby a really down was of here So, in longer destinations its is our Airbnb to to business. emergence excited think what think stay, the a half at people stays, travel is went be bit. now think It it peak used cross-border living people quite what of about in

it’s Now again. our and about growing of one-third business

this. demand. So yes, a to lot you Dave, know want anything are pent-up I of we if And seeing add to don’t

Dave Stephenson

No, the key. think that’s I

continue we’re it’s Our but to countries in cross-border to in strengthening More restrictions travel, see October. here are their travel continued the and QX, XX% here trends reducing improve. continuing travel

Stephen Ju

you. Thank

Operator

Thill ahead. comes Our the next Brent, Jefferies. Brent of from question go please line from

Brent Thill

Thanks.

Just the you a us think drill on can the there, you’re what country of and of you inside in to and sense Europe when cross-border, what’s there. and starting seeing happen give

Brian Chesky

to want take you do that? Dave,

Dave Stephenson

Sure.

net We’re September. continuing in see sequential relative in improvement the to nights October booked to

restrictions come travel So as they off.

increase that see nights XX – October booked in did We’re We continuing have sequential XXXX. that we more net in to global

are variations, So, I the but week-to-week right. be think sign Europe. some the for positive up really there that’s a And to and continue to trends

Brent Thill

a anything has been in And you’ve underlying is strengthening as just continued it as just trends? this there follow on, due been to that Or seen in mentioning? anything to you’ve just Europe surprising that recovery you

Dave Stephenson

of it of a lot reality of saw tends of that wanting QX right? kind in QX vary get will Spain kind restrictions strength a the part their by summer traditional into or Italy kind of country, other big pent-up the and is levels Europeans to and travel. There’s Different countries holidays our in obviously opening. We in have for of to demand results peak places. in of different Well,

so country but some Europe throughout, kind the continues. in business just variation there of And can be strengthening by of the

uptick a into even bookings, in leading seeing XXXX. especially nice We’re

early next some So XXXX. the that travel be and we’re is now year to of going in growth bookings throughout in for seeing obviously

Brent Thill

Thank Great. you.

Operator

Anmuth a your open. JPMorgan. line Doug Doug, have from now now question is from We

Dae Lee

the Doug. This for question. Thanks for is Dae Lee taking on

those? host friction do so one, is with line, the follow-up, for time? your this in year for cohorts from these hosts versus your as based along cohorts today. your host prevented have that that now have the a conversation becoming what think a historical but biggest them And are was first the newer rollout The how host, on among initiatives upgrade resonated performing didn’t the And that you point you’ve them first that

Brian Chesky

All what you the of and are first the friction the part question question, Why biggest the Dave for Dave then Doug. don’t points have follow-on. the hosts can I right. Thank – take about for

really, Now great three three there’s Number parts the To people Number a question. number really three, are help. they easy? funnel. those really hosting. of is can two, the about know it get me, And do parts one, of the funnel.

do Well, So about mainstream. even people is very number one, know hosting Airbnb’s much brand

So the opportunity to a easy. people can people getting being been I more States think that effort stimulus host. which than huge the most check surprisingly we’ve is of $X,XXX, and amount the they’ve average seen is realize don’t in United the able make host

have a lot we do to simple hosting, to make The thing it This continually to to easier to is to and of of do tools a we’ve easier trust first we make really we host. of do something, the a it to The to story core continue was that, We have. people innovation and have We really before. number XX making custom simplified the obviously basic ever where steps. host built we’re than of the host. easier thing really to host so that system it more built become and steps we it. easier been is make And doing working. Airbnb tell is the next innovated

or it more And can your easier going that innovations quite have desktop do even quickly we next from that phone device. now November a showing we’re to Tuesday, X. You make it are

to second this They easier – I say, some sometimes And finally, like the like, it’s to want your to and stranger up. we goes How it let So it much hosts. a change? what’s other should part, that’s then home. regulations. making are What to do is rules as conversion the in want people people local what that like rate know talk

talk And really so important. host is having another to to

Now model. the this is power Airbnb the

we’re we’re other platform. Airbnb community bring so a a is about makes the things One to And where of the tell special them that host community. on and me hosts they

excited And a more a be we’re about going Superhost is so November on and what that. program. we’re X really XX,XXX up Superhost continue And sign program. host had that, to we’re that prospective use than scale Ask We’ve to scaling announcing going to the to the I’m Ask

these So parts three journey. are of the

to focus on We these. continue

lot want host to Dave, We’re take part retention. the next the get going on you to a more host.

Dave Stephenson

a What is the broadly we’re seeing we’re new new booking listings XX% churn how new had seeing the it Like some a step hosts of – days. let been tell rate the that and improved. within makes three rate than increasing. a of can exactly It’s the are Sure. acquisition hosts success step and little are receiving early for me eight new that lower to XX% days. of of to back new all it back I has or that host But hosts. our things too historically receiving actual of work going in listings it booking retention share overall,

more actually quickly. they’re more successful, So

host host. on, may in have the have that of that that Airbnb been are traditional the new they We’re seeing hosts are individual only property to coming Airbnb, – host successful exclusive that largely have of core are kind that down listing a That’s – it’s was the it cross of we’re on. times. from in still host where kind individual that two, is our pre-COVID majority of or of the that And host bringing the actually

historic of health host is we’ve overall past. growth quite the that we’re with host new the the had types in our hosting and consistent think I community very seeing the strong, So in is of

Dae Lee

it. Got you. Thank

Dave Stephenson

Thank you.

Operator

question comes next from Markets. Our the line Capital of from Patterson KeyBanc Justin

Justin, please go ahead.

Justin Patterson

app? more a about question marketing the broader around recovery to been that, that Dave’s consumers? question, Or flexible I this going a That’s success one. Is for have think with marketing? two, within then of lot Thank to had are that clearly how think should behavior? And the you. do learnings urban something And consumer you steps forward? you’ve of stays. Brian, what that pace brand next is you. Thank the the the Great. your make feature What of

Brian Chesky

question, the for Justin. much very I’m excited you Thank Flexible. I’m with Yes. right. All really

feature tool announced or flexible new just I’m to So On when traveling. that Flexible, Airbnb, a search where is recap what – they’re about XX, we to allows if they’re search people May this on

go Flexible. page says home really it to right big if to it, so And see you’ll Airbnb’s a you now, I’m actually, button, do

on a now you completely view takes whole you browse. can If you of click where button, it to Airbnb, that new

product a organizing essentially If house, of We it’s new really Now something this this of do tree process We labeled. house? and listings, every is the our catalog it really says an had data, a through has to millions inventory. photo made actually of is structured went this been special really of built. really, a we we tree And properly organized extensive all successful. our feature is sure getting

have features a We they’re say, people, allows looking time a for times. I’m to six been months. dates when a – they’re over the have for more any place weekend next traveling a week for if flexible also X.X those flexible billion Well, that or month used than

the many Flexible, type is type listings the Maybe flexible I’m a turns and point about the have to field levels With in, about what people lot book to of properties it home so more likely more excited people if rates our another Airbnb are destination, because Flexible, town in the to never to you in use the lessons? likely I’m what you up, they’re might don’t to more two, on Number be on a small Well, way I’m we’re first to more lesson, into the heard really So that thought allows conversion really are have going the to this. where of And of. destination. we have demand unique discovered. it’s that supply. in able showing thinking really it be locations wouldn’t property. a There’s find playing is they’re right? It

this that So on It we’re tells travel. us tells something. that a in new us paradigm also there’s to

stay. I so is flexibility here that And think this to

in that. where when able be a I flexible by of really we’re answer features, travel the should new think I to And one is holy having to able to a of guest should this I and question do for go grails go.

to to cool I’m show. continue to categories is that for So Flexible. November invest that be going of announcing new feature. four some in us can going There’s what’s On X, this we features next we’re really we’re

So in. I tune hope you

the feature XX flexible months from expanding to also six date months. We’re

a take you important to because, XX And be so again, in and question? And now next see that are to anytime feature. want do will you we’re think I incredible demand. major down it’s continue available way in the us searching it balance Airbnb, supply on to the properties going to this invest allows and Dave, these second people can when this months. road, So really the

Dave Stephenson

Yes.

really XX% QX think at right? urbans yet about XX% pre-pandemic parts to even urban. kind right? strength strong traditionally step been while are has – our thing our urban Cross-border has urban is The of high-density been, where and been results business returned been still has Airbnb remember XX%, mean, Cross-border back of I XX%. that levels, and cross-border to happened the of traditionally the not has those two at our yet business one kind strength business. that’s I and more of

it’s growing but quite it’s So back, nicely. not

about the that our seeing of strength we’re that, recovery is overall. be you pace business to think I what additive urban will that continue the and say So to

the pace different. also of it our even what’s that the XX% cities the about is a X%. interesting the XX XX in little think revenue cities the recovery approximately urban of world now comprising and about contributed nature is top are Historically, of bit I top

of diverse, So in is. travel spread distribution getting terms just our it’s more more where of

revenue think urban it’s even world. a comes I of So still the broad back, the be to more version as across spread going

Operator

the from Oppenheimer. comes question go next please of ahead. line Kelly Jed, Jed Our from

Jed Kelly

probably of taking providers property urban couple managers bookings. up and scale Thanks start call your seen them, that inventory for a accommodation We’ve Great. to larger for question. will use my platform

So way of Brian, you can workers? property just to remarks, out for on there work update us anywhere you managers. from provide And larger your you major any with on closer then some the to them in provide opening how did benefits you’re working some trends. call to companies work and the Is the an

Brian Chesky

work for the me let how question, opportunities Jed. take to trends from of and large property you Yes. both anywhere Yes, with work Thank and companies. managers these

build XX% to individuals, professionals hosts platform are the of though and new our of first XX% is one, the for we or to on them. continue So Airbnb, important very our tools

And of innovations also as those so this more the around just for host upgrades to and happened of host. XXX past professional have year the we alone, half many and a we’ve upgrades And had applied well.

And addition so and hosts. in off individual to we’re number to hosts going be a many of professional are going innovations be showing to of on features X, these for November

Dave we’ve I this I in we’re fastest-growing that going growing areas. just inventory area, and you to in America to for of that very and amount really are in we quickly. still part And believe our an really of Europe areas continue nonurban to demand them. of this. as professional example, focused love said, provide So seen a give certainly, they be we’re think hosts And North the And

PwC, companies think the as I Now the a really area. policy. Amazon, this remote of mean, number are just approach. Yes, said, beginning have the from work anywhere Procter as exciting more that far I Ford, as we of offered is a & Gamble

to have maybe come believe do all we flexible from they stay. back to that they more a it’s very safe is all week, is days that maybe days work to Zoom going stay, days had believe to to have to that a that, asking week, think five four week. days believe to workers here people to say five to policies. office have few back week, back a you here three workers come maybe to those an they believe And back is that that don’t And come companies as are even I be a come office anywhere

certainly reach continually And companies people we don’t to integrating what do right if we something to of to be a live with it anywhere are would more anywhere Airbnb of of. on going We companies be takes make to continue and able have so to us. out to now, we’re anything to starting easier announce but see lot for it that that’s course, work and

Jed Kelly

Thank you.

Operator

from of your now line Our the next question line Baird. from Colin is Sebastian Colin, comes open.

Unidentified Analyst

the communities I just versus there was with any experiences? booked on how is talk of are for growth Thanks. is in recovery you your This the doing? in seeing of there? the And difference wondering between nights just could adoption if you’re trends kind of about Reese maybe relationships And Colin. then trajectory

Brian Chesky

these. Yes. I can take

been words, when And like Netflix. people out especially to think actually from statistically leave homes obviously, want In on experiences, eventually, strong. it’s of being the our star get I Airbnb love more growth been like feel want in of our after star X.X experiences. traveling. popular very, a are guests things expected core they a very year year And people With So more And even experiences That experiences years, Airbnb course, than five a homes do last for business guests. really The many product I be happened. house. stay I opposite restaurants, review They pandemic five than and pause. of to standpoint. said, other homes put for of the only breakout And alternative the so watching now that very home more can nights stay. has they they’re amongst

gradually to this growth a ramping strong It’s the coming I’m and up been be expecting five over couple area bullish quarters, over So the reopening. seen this and so. back or of years I’m growth of last very We’ve on big product.

So we’re with that’s seeing what experiences.

of Even start all communities, we Now the just over with regards me by saying pandemic, before worked let this. to our relationship world. the cities with with thousands

to in of tax. or You had for today, collaboratively category be and To hotel transient give to billion with a with travel, we cities to stat, created see sure we really educate communities. you these new occupancy and make able them we tax best $X them work to work collected works everybody have this occupancy

without collect jurisdictions. tax those hotel and cities with can’t You working

relationships So the seen because of a concerned with had cities. a we’re with pandemic close tourism different has last lot with what is of concern them. way reset cities actually now. is for been year And I’ve good markets a And in in bit the seeing reset a really are a what that their we’re in that in relationship we’ve our probably

travelers business crossing the tourism of over shortfalls under and international going shortfalls. have reduction and that means these into cities travel, fewer number have travel general of of destinations big borders to Now cities revenue just tourism. cities The many

features the point want we to And where supply that can so a in fact, where And organizations, XXX can happened had also partnerships around with demand collaborate. lot we our done means new to is reaching what’s have think And we’ve I demand cities flexible to cities us it. point of we world. we’ve marketing out destination to and

this a over world. all for us renew great And really so really think period exciting I is a to, the cities with relationship

Unidentified Analyst

you. thank Great,

Operator

Fitzgerald ahead. next question Brian Fargo. Brian, please from Our is Wells from go

Brian Fitzgerald

Thanks guys.

lengths open we’re stay On comment the cross-border if I just travel, trends there. could up, on wondering you of

seeing just on Our what is intuition people length more about you’re thing generally. environment, on that second get plane stay. they the current across probably that And a stay are there. to amortize then But the going of in wondering longer a to want

and any on XX-day any one increases plus, versus maybe hotels day week becoming just the of wondering and XX-days terms seeing a spoke become you’re You stays. thoughts a Airbnb trends in seven week competitiveness if how two there? stays, to to And you could talk what stay as of

Brian Chesky

that Dave, with start very question, hand to can I then, I Brian. you. don’t Why Yes. And over last

incumbent we that lot hotels. was of and and friends, travelers can when An on industry. this You what quite little was impact Brian’s stays just stay talk of two was is how growth industry about company the liked, the But my have I with XX me bit think That of about of length maybe the to the and interesting most long-term a of I question of stays. I asking. more other started cross-border, people competitiveness think with we really old It’s its weekly the category years start started a Airbnb. entered let options.

to lot staying are you If and months, somewhere this. than for current or month doing the to weeks a try of were what friction. a multiple say you city somewhere live, lot three let’s you’re other stay of not your options? There’s players two There’s weeks, a

you’re a stay So be I home. the is to compelling it home. gets more more a time. the want of away the for a stay in in to hotel think very And the home, we longer weeks stay, from length to It a in at think expensive longer essentially, you the

backyard, a want cook. might to to you kitchen, want a be you able want You

You outsider. just like want to your home you’re feel an not like and

to of week or partly think is that or why Dave, longer. that do be And really about is some a talk you a we’re the going opportunity I want about this to even stays long-term us. are big stats excited stays really so for this for And seeing? I’m

Dave Stephenson

Airbnb Yes. this trend highlighted at is that seeing from of we’re use stay our the were to increase. in number of the same Brian on it’s least nights We that the for length find seven of way with that travel just And working XX% cases is stays longer. nights. The continues that a people the that letter to better shareholder way mentioned, just

the and related anything accretes that that it not in increase. trends to And stay directly to of are of going for nights, stay want but those length But the extent have it You’re to specific And a to continues does, to to say that. to hotel room the stay I just don’t about XX continuing. cross-border Airbnb. broadly more length

Brian Fitzgerald

Great. guys. Appreciated

Dave Stephenson

you. Thank

Operator

Our comes from Naved Securities. Khan from Truist question next

now open. is line Your

Naved Khan

second Thank technology questions. saw onboard Two then list that to we social Great. the question work talk just to some on in you just priorities. impact basically around the Apple showed where on that continue hotels. had help And news any is see iOS it Did changes ad you you. your articles I sits your on about campaigns? Maybe of

Brian Chesky

changes. technology take in in With Airbnb, iOS efforts No, business Naved. regards our that’s to invest to and any not on Apple, not those, of their Number Yes. in. hotels. really the I one, can we’re we’ve both to impact onboard seen just

scale on transportation and about scale important initiatives part had that that bit being unique. to something we Airbnb a a strategy. back talk a we We had bit like was little initiatives very just to decisions the to our And to a year, Airbnb’s strategy hotels. come difficult people That still hotels investment are because in said, number of we hotels. some others. of back pause, believe our with Last of Let’s some one make put have

anywhere you something can’t unique have host get We to offer else.

people Airbnb, stay. Airbnb find That think make place to book always to want we sure of they host. that the we individual to come to a so said, that being come And people majority direct to

And really have sometimes to ways we are think hotels gaps. we great network network And fill a gap. that

continually HotelTonight So about couple investing growing a excited to the when somebody comes to been Airbnb, they very place steadily progress, really we’re I’m has in in and find years. stay. can always the this last of area.

hosts, it’s supporting priority them. of Now a as we’re not as individual supporting big but continually business core our

investing this continually We’re in area.

Naved Khan

on core Maybe we anytime or Airbnb just to seeing hotels in future follow Brian, up would time be the the on soon? that,

Brian Chesky

Will we be what? seeing

Naved Khan

on hotels see Airbnb we Would core all? at

Brian Chesky

most of ready now I prioritization. as are Right many just – sure. perishable opportunities as get and future it’s matter scaling most Yes. the really many it’s see as I expect to to to in mean, as perishable yes. the quickly of host you we now terms now, hosts just opportunities And of Airbnb, are more other a as And on right possible. for possible the we guests focused thousands on have tens

but we are the be our world are investing to and experience, world-class simplifying would priorities that priorities, recruiting make at different, Those hotels. a continually big our be service educating guest so hosting, And service our hosts, in the world-class getting to certain getting that’s level. major are

Naved Khan

Thank you.

Operator

Mathivanan Research. ahead. next of Our from comes Deepak please the Deepak, go from line Wolfe question

Zach Morrissey

from on Zach is Deepak. This Thanks.

ADRs, has But to this that know appreciation also mix of certain of price in shift. some kind starting you called driver far see high-demand noted you first so been on you’re the primary Just out I areas. kind that

dynamic then Just long-term the And to hard kind you kind But know and ago? a I travel some restrictions in the of behavior curious related the we COVID, second, you months if six to and of today little that further. seem versus XX parse and easing, of this Airbnb’s of differences today are context any Thanks. trend restrictions out is predict. can And kind of demand generally in but cases to to of seeing be it’s kind or to demand. you see impediments very Do concerning rising growth? impediment pockets to the just

Brian Chesky

want Dave, do these? to take you

Dave Stephenson

Sure.

ADR. me almost year, Let that with the increase The last trend in mix. was driven ADR ADR in by start we saw the exclusively late

are further mix that has increased some was saw these peak bit larger they relative as the season. ADRs, with said due nonurban travel ADR we’re a what QX. in the Even again, of size that seeing, home. ADRs I we And our the of price the QX, what a basis appreciation then the of were relatively so stable just And on And earlier mix. kind is increase. kind a the little in of is urban, with here in as in QX, elevated regional majority mix, been year summer to increase And then of what portion

really in the no there’s price appreciation. change where is So there some price

have we a I great still think value.

to bedrooms, We’re give more there’s more more of valuable still people, able get. homes terms that place, larger all kitchen, the space they a Maybe and to they very stays find amenities be. amenities, in

And so we a great think we value. continue to give

governments pockets it’s of be differences versus it cases, and willing us. of don’t the world, monitor a the I bit to guests second But to seen in And There’s there continue could right? threat pandemic. I to we’ll existential then I just question a is any so an rising think bit what guess of being think the travel we’ve is it. be more resilience just And around little be – think mindful on COVID in has to the what to And even and more doing in do general find up more travel, it. be frankly they into but to the that positive, of the terms of people, I more face that continue do consistent. various the up way variation trend depending continued and is strains to – And best opening of borders. Airbnb on wanting right

Unidentified Analyst

the thanks Great, color. for

Brian Chesky

last just add I’ll one comment.

is world. seen incredibly whatever to in a existential best And I business the to And changes the model think come. is don’t the I adaptable do end adapt in the it. big our world. really we’ve predict living We’re can’t to changes are you think And fast-changing of future, if to thing

Operator

please line comes ISI. Mahaney Our from go ahead. the Evercore of Mark, next Mark question from

Mark Mahaney

Thanks a is for This Ben Mark. on lot.

So in the refocus XX has priorities allowed core pivot really the product their last business. months, to COVID on to Airbnb

change going As I you do priorities bit focusing year, look of investment core to start outside second you Are little business? if the to your you then on next your somewhat? stuff to question, a could. And anticipate

talked expect short-term the them restrictions to the about somewhat in just Just you permanent Do relation how be a the restrictions Thanks. of to And on being as drag? APAC, a in recovery drag those letter significant region. versus are that they? rental you in Are new XXXX?

Brian Chesky

want Thanks and new start take that to you can be the question. Dave, then to I with about APAC for and investments. talk do

Dave Stephenson

business Yes. a rental regulation time. we’re short-term On as our not negative changes being APAC, drag anticipating over that on major any

restrictions a saw We’re of we and this governments that little there wanting it time, elsewhere. just mindful some variation are in can APAC more crisis especially than by what be do, And during kind COVID varies we in area. to did

Brian Chesky

on then question new your And of investments.

And but Brian, scale But benefits I than done had not world-class actually life been educating your Airbnb. valuable a the to people we’ve what everything growing Here’s year was me, hosts, of simplifying took few college recruiting we I and journey, them you one reduced improving the in very initiatives. back learned including would only problems, you costs I some faster. told not we about learned service all even we’ve we less remember want the last and and the we mean, focus. I certainly very that lessons that, say. all best teachers only in last of about time. do a our in at on can guest we’ve business, more just We as same year. my Yes, the focused world that, once

relentless a this And of has And in a we that service core travel. That going categories this We of to one to new year more perfect there’s so innovation created being think our lot hours I we our category create nearly are Airbnb. XX year innovation on do things core said, Airbnb. been every can a service.

we’ve one and done May in We in this November, releases a did more so couple two to next And again and year. going year. we’re one do

from the last And time so be not you November will hear us.

really going really You’ll excited And spring, us we’re some doing, as and release we’ll new short-term big currently again, well. in the introduce stays. have to that from summer, again big a hear the we’re where summer areas the for I’m offerings about

I as realizing surface home we’re just incredibly think this a scratching new that just But I that to category get is the opportunity. an And with is Long-term beginning. are think opportunity for people, comfortable huge now grow. crossing getting borders, gathering are sharing this will other stays getting entirely of we can be people continues big experience outside Airbnb. and the

innovations We continue new have to of more our people. design creativity to us, possibilities in use will and many front we for

Mark Mahaney

Dave. Thanks, Brian. Thanks,

Operator

currently questions. further We have no

hand So over Chesky to Brian closing back will I for remarks. any now

Brian Chesky

today. joining for thank Well, all you right. All us

We more. this XX already XXX Just to innovations going upgrades innovation. And next been announce of for everything year. we’re year. launched week, recap XXXX That’s Airbnb relentless than to this upgrade XXX year a has more

the revolution. this of Our millions the travel that ever, to And now because our we’re can is And design-driven length for a continue will adapt improving and anywhere Airbnb. live on world. means service world anywhere any change constantly time to even to this changing anytime, travel people approach for first

getting just started. So we’re

next innovations with more with many to exciting some share have announcements you, Tuesday. We starting

you So and thank see all we’ll you for joining week. next today

Operator

for today’s you and hope your Thank have lovely concludes I rest a of call. you day. This joining,

lines. You may now disconnect your

Airbnb (ABNB) 5 Nov 212021 Q3 Earnings call transcript