Earnings call transcript Q4 2022

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Operator

Good afternoon, and thank you for joining Airbnb's earnings conference call. for the fourth quarter of 2022.

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, VP of Finance. Please go ahead.

Ellie Mertz

you. Thank welcome Quarter and Call. XXXX Airbnb's to afternoon, of Fourth Earnings Good you today. joining Thank us for

call we Dave the and On today, our Brian and Chief Chesky, CEO, Financial Officer, Stephenson. have Arrium's Co-Founder

shareholder website. Earlier today, commentary our Investor also quarter fourth Relations with were financial XXXX. items on results for These letter of posted we and our section a issued the of Airbnb's

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

or recent of remind shareholder Securities in number expressed to that to to our Commission. this results Brian, and in I be from factors I forward-looking filings we due uncertainties. materially and and Before Exchange forward-looking it statements making like a factors. our in will turn with over statements those letter variety call the would that of most Actual everyone the are statements implied forward-looking These on differ involve may a described under risks

consider remind or circumstances. contained these to events on subsequent We information urge reflect factors this the we you you undertake obligation update and to call to no that

You not statements future guarantee considered should should performance. a of only and aware be that estimates these are be

results. we intended reconciliations to will shareholder be a comparable not this non-GAAP during for We to some our GAAP provided posted letter Also call, financial measures measures. non-GAAP These to are measures financial directly most the the discuss GAAP in IR our website. substitute

pass the I to will with And that, call Brian.

Brian Chesky

All and afternoon, Well, good everyone. Thanks right. you for joining. very thank Elie, much,

personal want tell quick results, story. I our share to I Before a

waiting From the And of the Obama receipt old themed guest Os for me room original a to photos is Last again. cookies started retriever, the walls. chocolate have I Google. Cat and desert. the first golden is the my run we may the for boxes with family the in them. Chip, When that Airbnb. around cherished on called listed have night and guests The followed hacking welcome listing my And arrive, you cereal. As basket and make day, I've chip memorabilia story guests dinner from the years of breakfast office my I hosting of I off McCain airbnb next seen, [indiscernible] Airbnb. tell Seltenova, we airbed There's tour early I by Airbed. My building bake got Airbnb. recipe Beyond histologically November, together, the We

to hosting. with staying on behind years Now first why I you Joe Well, home been the am connect is the XX because love way to best an at also the I I our will best products only our Airbnb way your for is original be doing guests host. people. amazing having as And host to this? were And And It's idea I makes that the that believe be one. themselves. companies and Airbnb ago. make Airbnb. successful products But as host with understand

summer release. have be XXXX resumed I've the updates as hosting, insights first-hand we'll of new some new products this I've part of May exciting informed that releasing, Since some including got our

the of get results, quarterly year before recap XXXX. we Now want into to our I full

in in While this fears impact. with from of Ukraine, we we're with start of and out seen also X we're XXXX. high inflation, pandemic, are which still the We've years dealing still the living recessionary war all

year Revenue was we and on past basis. Net because billion, yet, exchange, billion. was by our $X.X just shares months. income $X.X billion GAAP are XXXX exclude of cash -- for able And over record $X.X when the you people flow billion grew year-over-year. flow balance a begin XX% margin all this, free profitable in travel, a revenue of XX% free marks XXXX year $X.X year-over-year. represented cash our Airbnb. which a flow this And through of back repurchased year as foreign sheet, in increased And we stock of free first last and continue X to $X.X year, was to finally, XX%. billion And full And our buying cash strong

we each during more Now height some company, headcount. our difficult a made X kept modestly increased us we've spending we've past ever and reduce the since. the discipline our very to leaner of In the pandemic, making and only years, choices focused this over of

our XX%. outperformed periods. while million. In comparable quarter fact, $XXX In is single our income down compared XXXX, up past every actually in was to headcount In revenue XXXX X%, is net QX,

million, year than ago. free a Now $XXX $XXX XXXX. XX% this million generated QX than we million $XXX of this higher cash is XXXX. was and XX% is flow, And EBITDA Adjusted which is higher higher QX than of

quarter, we a positive the trends. saw business number During of

guest despite First, booked evolving bookers of uncertainties. number active remains had economic Airbnb travel Airbnb experiences and QX, Nights QX. at XX% guest demonstrating in demand of excitement strong. highest our on increased We in ever

guest continued strong see supporting trips we booking quarter, QX. the to a advance for During also backlog further

pandemic. before are and the increasingly cities to guests bread-and-butter is Second, border. the this And returning crossing

while volatility. all currency Now nights compared year. High last XX% remains grew continued and to we And to globally, urban XX%. density accelerate travel cross-border travel regions increased both non-urban domestic booked foreign segments continue increased saw nights to growth strong. despite Cross-border

stays on Third, Airbnb. continue to longer guests the book

We in million at a QX, long-term Airbnb. gross stable During active ago with in we on growth X.X year supply nights booked XX% remained And finally, total ended tremendous Airbnb. XXXX of listings. our from stays saw

growth an China QX. to ago, in grew listings acceleration excluding a all supply we in Mainland the by July, XX% relative or we XXX,XXX listings listings, year Now to in removed representing compared

factors drove listings in X believe there's growth? We this probably Now that growth. why accelerating are

can during or earn supply. the supplemental income which often First, an they Post that demand attracted to times. drive critical Airbnb, is tough

our are Second, improvements product working.

made a it become attractive more the Over X easier years, and past host. we've to

their introduced first super our more Super with active through November, help way reservation. host prelaunch. increased prospective House Host where XX% new there. we this for But recruited connect the all number by not are up Airbnb past guidance than one-to-one of The compared to Just of set the stopping can free we hosts with

strategic on priorities. focused X In XXXX, we're

want we posting to mainstream. First, make

to listening this to likely want awareness just even provide continue be tools hosts. who travel to or have. easier you on for you're as Airbnb achieve know Airbnb started and hosting popular someone hosting, this, make If and we'll on around We raise get you've to call, to it better

right value and that Second, we much, to delivering customer our more. the on upgrades greater listened every are including and this And of home their and perfecting hosting months, our obsessing who making And year, people it to feedback, to service large over the of the guests detail, love improving and service. our easier a we've we're core We see want number service. our single means in especially much more release. service, in you'll our coming forthcoming making find this based

the finally, we're beyond And third, core. expanding

to pretty provide And year, next. some have build where this that come. to ideas incremental many products we're to years growth take future big the Airbnb We foundation for for will services for going and

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

Operator

[Operator Instructions].

Kelly from Your first comes Jed question line with Oppenheimer. today the of

Jed Kelly

Great. Great and execution. quarter great

may. if I X, Just

urban the and initiatives apartments? talk you Just one, sort how doing can your of you're around of supply trending some is about

of did you lot Brian, layoffs. And Silicon a there's mention headcount. Valley, obviously then, In

that margins. growing, of having the are You're companies expanding one

to So about? talked initiatives your you some can like talent about you just execute top on the ability of talk to attract tech

Brian Chesky

absolutely. Yes, Yes.

first supply let's So with growth. urban start the one,

come first Airbnb kind just that think start, thing hosts me bit about our that Let organically, of talking that's of by global about supply. more majority great of to supply come how because little Jed, our vast is a network. The we about the and

host are of were XX% guests. the of In prior in QX, source fact, prior our guests. #X hosts And

have the we have more to what's we fastest-growing one And demand. they happening the the is a of people. fastest-growing friends. hosts supply also And is are And of I tell market their bookings, as tend they other see get is lot where market regular our things we think

And network it. a is has that effect so of kind to this self-growing something

initiatives, an easier. we've to of about a landing easier in these we we've amount new Jed initiatives. Number page number a up. learn make which doing also focused Airbnb, have that you hosting running campaign X the set idea And we've Airbnb to been between twice basically a of space, Now landing to addition this seen you have been to the then page, and And that is that, host one, been with called if making have hosting. our we've traffic to Airbnb. made Between improvements big hosting

States. United from last apartment. the and of other Now worked we in multifamily large real the inventory number in apartments, with Airbnb in can unlock developers might and largest Airbnb have the a new addition, initiative a seen we estate from urban areas, Greystar I you called a think the announced homes amount of that in November,

been We from in have and have the cities. And XXX buildings in in very, very Houston Jacksonville, Phoenix, response positive. other landlords

know, I want lot are seeing we So don't headcount. before anything Dave, supply. of if on a you to talk traction of I add urban

David Stephenson

You ours has of that the above It's the in part recover. of it's business, taken actually historic to of well been kind covered strength QX. for because now our accelerated been longer of has this XXXX of part growth areas a really the it's urban kind well rates, that and

the Urban. been we're days early the we're potential adopted, and happy very Brian Airbnb has very So that of And friendly well at as about with apartments excited with business. where the of said, in part we're

Brian Chesky

something was happened. on really just question, And headcount, interesting Jed, on your

put So lot best happening much really can a problems. our an XXXX, And fewer for less and But to there is why some meetings we And on we And think that's obviously, really people company. been smaller of people up a result of all and the obvious What in and efficient only grown more ended more result. a we company that people quickly. we has make I difficult and in decisions obvious is got faster. had was have concentrate we more few explanation focused became -- and very move a them profitable. the that

But general field made function. we because very place to we're best it's a one also, the We're work of functionally I every work come in much to Airbnb philosophy And we a that And think to attractive in get done. more much that want easier on us a it's companies I the every people not to think organized. really stepping positions. really gas. the going on hiring we're not We're our We're to people, layoffs. doing to mind, in in that of isn't mean We're we're actually continue but on stepping huge gas lean, few focused the adding key really freezing. amount doesn't But just cutting. stay tech have

of like -- I that's a analogy this giant we we're what special again, it's on. the kind more Navy, that use forces and like not focused And building we're

with lot course, of getting And success talent. So a of of lot we're inbound. we've had a

David Stephenson

below X% still a Add XXXX. it of where is our couple headcount actually to One was things. in is

We have a revenue is XX% higher.

So gather very approach say in Live about do twice previously actually big with fewer very approach, as as need in And to we're people. and we very in intentional it just is together how Work being we our were nearly important, is other our coordinated I'd We working to person a person. believe that the way. Anywhere

people it. a way very controlled the random effective, And of having week great our for on and think employees' more is very actually office of doing company, also but that's employees in being and not us the attract planful love days respectful being in So talent. is is to -- time back I and efficient the enabling it

Operator

of comes Clarke C. the question Richard line from next with Your Bernstein. Sanford

Richard Clarke

may. I if Two,

changes around, just the one, to the come distribution landscape. that the The I years guess, regard coming might some of with first over

landscape. rivals that your what and a going their loyalty business can talk do lots vacation rental to distribution conversational around into to wrap of of is the AI One program,

needs good take bit for like achieve rate comments then anything do on Airbnb a So rate. you to to very a was result? to more anything the preset, obviously, platform? one, QX it done there Have just any little that in distribution particular but whether take And further second on looks quarter

Brian Chesky

do want distribution rate and Dave, you to after. with take start I'll end with

David Stephenson

night's we that particular that time-adjusted stable. we've with there. With from a in Absolutely, has each rate take on very been day basis, there's the rate, take take nothing amount done Yes.

rate in over value variation revenue take variation just of booking any is quarter-to-quarter. so And gross

on rate. nothing So take

Brian Chesky

by distribution And -- mean or how? you just like the maybe, Do just you Richard, can if you competitive landscape? mean what clarify environment

Richard Clarke

other any to increased coming wrapping you your threat around The competitive at whether see the various conversational regard search with or maybe environment the AI and loyalty competitors from competitive landscape, program platforms threats into that's distribution, moment.

Brian Chesky

I mean, things. think just X there's No. I like,

just own. not stands to On and offering business. We're I just known lots kind affordable the We're We're mean of of a mean, We're all the categories. competitive as have but We're business. in vacation and we not everything competitors of lot global Airbnb think of in travel, We're I the front, just a a we But over an I have a U.S. class also and the we're a its [indiscernible] used not between. rentals. different lot world. the over grid. also European off and urban business. way of in now

unique a we direct. traffic have XX% homes comes So offering. anywhere unique. And think that's I don't of think have our because ultimately, exist pretty something of The vast majority our we And else. that's I

quite we well. focused do doing if providing that great we over and is really experience the think and on that very And obsessing best we do And what we're I we're for really marketing, experience do perfect then just we'll guests.

have assets other on I'll say, we have. some The brands only travel the don't unique is distribution most front that thing Richard,

XXX,XXX Airbnb lot about is last social a about Let's a PR. of talking There take media year. media. social were and people Airbnb Airbnb are on articles on lot written

we slightly they you a as So think we a building people distribution, around educating back And have much come a marketing them have so and different to our we advertising great. back. really program to want generally on funnel think on general our to take pay is loyalty continually approach product product just to just best come is where The innovating new and we people products. to love PR, approach of full

possibilities the of very about changing Now AI. actually as excited for as the I'm technology, far landscape

difficult really we And our long there's in guests right? will the -- benefit city, Airbnb the uniquely problem. million XXX listings is much a our tail right that fact hotels, because And from of really as parse isn't challenge, problem data. unique a this. matching a homes so more is why million unlike Every search search problem, And XX,XXX the a what's than is X representative no SKUs. glorious. fairly it's single our for If good And stay going AI developments for really search some there. for of matching I us. left be AI that that's think problem. through And Airbnb a going X I is reason last less than is tuned very opportunity you, a to just reviews that problem have a to product like think think which I of benefit these to X.X all don't There's year. reviews are inventory. And

Operator

Your next from Ron of the Citi. question comes line Josey with

Ronald Josey

Brian, XXXX that's you next. is maybe you get a out consistently sort down infrastructure? coming that it that helpful, the tech be mentioned Or the of newer investments products what's insights is terms for provide pike? of core, would and been key are building Any in extending just more there beyond the we it question can

guest I we talked then in billion arrivals. X.X And believe the letter, cumulative about

versus the users. in returning And users newer more user so of about can overall that brand, just and if the I was talk mix wondering terms you awareness

Brian Chesky

Yes. XXXX. for Awesome. Well, let me start with investments

like kind is I in P&L. network. about have a We resources then. of And year we're news some and So expand to the services don't we're I We beyond products X started -- though this changes the going many friends. the new think my material business any in good is global think investing didn't and great back very that Airbus thing you're essentially my core, see to the

relatively I So opportunities, amount incubate think can investment. for that products low services new a and we of

going going on be as say guest the see, far innovations I'd as and And host you're side. what to there's to

products been deliver that our we take and aircover we lot side, general NPS have like a launched free, to a principle for charging. X host And has for we for on claims, for X% pretty side, host AirCover. it's reimbursement On claims away number always been value And so we've ago. points, of the gone more Novembers XX amazing. giving the rate host want is host up

product away of most services And on opportunities some host do primarily there's service give view to pay for our might think for. innovation Host we're going them. that and But our eco to general we are

side, the modestly. started we On very guest

which launched services. But more now around in there's insurance, we been really think have countries, X and opportunities is many travel that's like successful. might seen I really, You that the

to that beginning new think and going people right to service see matching product and just you're Airbnb in there's creating experiences really And more in for the change the experiences more we're lot something I ramp is coming I be think to years. in homes step Obviously, up. that to traction a a lot them. And level a going around

of side, be side, some that end-to-end some Services of to opportunities what that's stay going on opportunities a to So the travel and innovation. guest on we services lot have, would you'll for cool the host revisit the there's say. I tuned

I'm awareness, Oh, sorry, brand brand awareness. Yes, sorry.

last try full brand of On focus public, that now our we awareness, as -- I since funnel been to direct. part, said always XX% it's generally about a the we generally went sustained again, It's we the on XX%. traffic is approach.

efficiency we high a generally, that We brand. performance way is our marketing. ubiquitous Airbnb like pretty things have is on the extremely And brand approach

So really innovations. want around to what different do awareness continue our invest now we is in to

we're on X are Number be to offerings. be And focused educating there our people new going one, to and services things. on going

to continuing be every categories. we've -- there that. running people for people as around have been host. campaigns million will have So times fast we XXX And We're grow million going hosting. categories around viewed raise awareness as viewed example, listings, to XXX also for We're

I new want know, where how Dave, you as that on much traffic far as do about anything Now branded? share from coming to don't is returning,

David Stephenson

it's retention beginning interesting is millions and what's of been growth. been that of guests, performance come think over our saw Airbnb years new actually we've booking that I we since into of But that's mean guest the new I Yes. COVID. driver from powerful Airbnb, we've those users had our strong users And past the new a very been that strong. those the of majority the also since users, 'XX bookings from to of has of the introduced frequency 'XX

we've And look users to so that the type Airbnb. really new pleased to track able that historic on the similar users that very, of very with we've been had

Operator

Evercore. comes next of Mahaney Your question line the with Mark from

Mark Mahaney

or cohort I host into or converted have host Okay. and the mentioned at that that guess our or something you to is like Two Could sure pipeline, much I'm that's that you've but of imagine questions, got that host being please. maybe additionally, know that actually percentage think something. look a you that the I data? cohort all? just pipeline higher, I guests you said when qualify shows you at higher. robust just is ratio, XX% how that quantify data

And China. then briefly very just on

the we Just was you when of is just on it remind know can outbound, reopens, of get fully us your as so back you've said that market can an for a in how China will but that how you? material back -- that reopen XXXX, China gradually the -- I much sense opportunity business to outbound

Brian Chesky

start, mean Airbnb. in out Yes. who year. in Yes. as XXXX, more started I'll We've hosts than new Mark. prior I XX% This seen is available of that third QX guest

up year-over-year. going been actually has this So like

majority as with they can do new of going property a is they'll connect up. also wow, more the by it our individuals, this So makes becomes that it realize, makes are host, sense Airbnb and listings of because too. vast but people, And number I lot managers. not a And ubiquitous, sense

of host So where host and interesting becomes effect kind there's guest becomes then guest. this network

leave are outbound recovery we the in to that the think China, We as big be in far the travel. we to expect We pretty China. to going of be As business. to want for to think the hundreds and that world, be there millions prize China to is think travel China going gradual is Z best way Gen essentially of the people people

being a recovery gradual I we around experience they're pretty an are expecting said, authentic world. think want they That when in the traveling China. really

David Stephenson

kind And of booking gross in China our low percentage of value. the single-digit was kind of pre-COVID

So opportunity. our perspective it gives you some of

it could it be large period to -- think an be think we extended will for over take time, while but very a larger. I of

Brian Chesky

other the And cohorts you X Mark, trending right And just that yes, thing, are up. are

host. XX%. of for in think XXXX, I In XX% So XXXX, became QX XXXX, guests In XX%. example,

up. So it is picking

Operator

Nowak Your next from line Morgan question Brian Stanley. of the with comes

Brian Nowak

I have two.

new I'll how your sort help Just of the guests cut XXXX? first year? fast about 'XX grow did us in could in little about about what's are one, And Could guests your Or this of bit sort margins? just EBITDA and understand how talk you new growth of guest first and how hosts. a grow fast talk thinking and guests you sort

any And then balancing to around just the the adoption other that sort tools update rolled and on you've between better the second one, any quantifying of load or supply or unflexible of metrics out improve demand.

Brian Chesky

you if Dave, to. Yes, want Great.

David Stephenson

Yes. No, sure.

even guests, new thing disclose number Airbnb of their millions not of I'm in that we've new guests that terms think the they're guest that similarly, stronger I the introduced guests growth. On don't rates. kind the exact the I of of Like we to performing is since rebooking historic new than COVID said, pleased and really

the So really good have guests. feel position we new for I about

a Airbnb, also marketing a but make mentioned sure big of of it trying is of to last sure us awareness strong A just getting of in we of introduce as might before. about several have brand that years, just able to of that not And option earlier, again, is that Brian lot Airbnb of them. Airbnb have kind millions the piece thought making true this we're some we've been to consideration for people new

think helpful. I that's So really been

better right because host have ability to problem, Airbnb us matching great it's for the flexibility And Brian match. on trying to a a that key have of and gives difficult -- to think to And a demand the have we earlier, this to a mentioned supplied. flexible I that adoption benefit feature of lot flexible are to we distribute and and more us do say the a except way as we where the that very the we strong features don't guest match for have the right

Brian Chesky

things of since searching one booking one is pronounced more ones of variations in And for Yes. a more some behaviors endured. noticed using incremental those Airbnb entering were just we of the And lot a shift say, like pandemic. permanent we've most Brian, of the changes is I'd before have the that on seen probably And the travel And gate people. locations features, is with are features. even flexibility just flexibility lot and people We people they built more of were when a seeing searching. these before we different

And really so responding where things we to just were are going.

this the not And exactly down have they is go. I know the places. think there's travelers business want and I in increasingly, game where that and to heard be people want they of going XXX,XXX But is XXX,XXX we're road always goes think families here to to long-term markets, go where when

So pointing is have kind our available strategy. of to product the big of game where part of demand supply, the we name that's a and

Operator

Lee the Horowitz Deutsche next Bank. from comes of line with Your question

Lee Horowitz

pricing you came on impact expectations the these continue to to Would seen guys at that surpass grow. growth and appreciate at up we've mid-single So probably year-on-year. mix 'XX ADRs, mix the quarter FX-neutral maybe underlying in ability that pricing will continue but impacts. your offset initiatives with to looking digits

pricing ADRs is the you overall when the about can't strength guys. again, of supportive think grow why you So industry XXXX, of for given

David Stephenson

to higher greater higher foreign XXXX. nights in the XX% accelerating profitability. year-over-year QX, have rates were the impact mix, in on a kind GBP-denominated travel clearly cities, X up come, exchange. to It's decline drive And driven largely there's regions. financials. excluding ADRs. Yes. by But or Obviously, foreign what People ADRs were double-edged Thanks you also back of pleasantly Yes, they X% ADR towards minus the edges more -- exchange the greater cross-border right? for nights. ADR. is down bring It's for revenue, helpful are mix than X% lower they that say, when from greater our in the going year-over-year forward forecasted obviously, we modest flow-through of we of in ADRs going cities you and because back ADRs brings were changes ADR sword, to are euro

Airbnb for So to guests other stay it's more places. on expensive and frankly,

had want great benefit is providing on kitchen, to other stocked versus we're might and ADRs higher, that a stand we've at maybe The the right? still location, value. all even alternatives. think I great can Airbnb reasons that washer provide the why ADRs a Airbnb while dryer, a fully you are

forward just so the host want great we they about, guests to continue things And that's year, are like to And our guests. as to talked we're we look guests. that tools sure some make provide value we that sure to the the Brian's to that in to building great tools of continue make giving paying are that providing which sure they that -- understand prices provide are making and value why to

for year It's our and just through internally. even drive through kind as down why come the mix, through to headwinds that which from in maybe to that -- pricing. modestly sure we that structure we're So then being of doing ADRs, making largely ADRs of the cost other rigorous our be ADR through is, support will margins might we're is thing really in declining the same rates offset kind efficiencies by be the roughly the EBITDA anticipate XXXX full year as lower we our some

Lee Horowitz

come plays impressive iterate you thinking then that rates hosts on guys for into could. should supply these this I continue to XXXX, follow-up are is elevated that about Clearly, to growth we driving maintaining keep When will you that are at through you easier the funnel the particularly supply on product can rates, to I supply, given as think at Great. And anything about point. by showing there everyone make be how from that to the Helpful. the it initiatives and platform? fact if one seller

David Stephenson

bookings. supply. proud hosts we quickly, growth -- Yes. enough too letter and we getting much they're We too happy they get XX% we super we important are don't in our best grown marketplace, of our Very since grown highlighted then of aren't highlighted then because balanced enough supply have yet booked happy nights get get actually, get it's to they the letter that right? by XX%. because because And in If we And selection do the XXXX, our guests by supply in kind supply not the don't continued our the a want. have that a early what enough, have and experiences is not

strength balance $XXX,XXX to come the just Airbnb in nice active shows make So it and why X.X and just to here the And fact on we've there become last host more actually had we've a the had proud for is want very host easier that, from year where million the then I'm and demand. of that Airbnb. we'll of beginning in the hosts which of year, then to listings

be incredibly a providing there journey forever demand. XX I we've is where continue to will keep been us years, and And XX, think doing we'll supply the well it for this So to do that. for last

Brian Nowak

Yes.

think been focus think I I around think a ours. it's we're look, just big I And bit I we really we're a this. of say, muscle building of a to more think

on So in the whether building, supply product innovations, it's awareness, even focusing the key markets.

muscle been the really team it's I has a great built. think

Operator

the line from question of with Jefferies. next comes John Your Colantuoni

John Colantuoni

to rolling pricing you're headwind going that to out. new like of start they're wanted discounting and sounds I expectation to the net sort that the is It ADR. with tools be a

be I perspective but about customer improved through great assume can just walk get would of the strategic it the So to it's new on sort for rationale you that. experience, products. your

the right of with experiences XQ And in the basis sort be the back second, pre-pandemic. this the on trend about XQ to historical in think seem throughout and experiences a quarter-on-quarter and saw and way Is we year? seasonality cadence to the nights of on trend nights

Brian Chesky

years John, back. in we a Airbnb, feel when we And to hotels. amount And of for discounts, take have key value and just best I I'll think the is XX an we Airbnb, value. we as come. continue I long started the On have pricing make use that as value huge X that Airbnb, ago. let's years to a start. product we're to of think reasons great and best we sure the step like at they going affordable started, to people and growth to people that started as that deliver And affordability have alternative

And so that X we're doing. really things there's

rolled countries convention fees. all-in in the first with The show price. get lot the a time States, a But total from we pricing -- rate. you And we them And our base able the of And companies additional we neutral. a total for there's then our many hosts. around lot actually in Europe, our has pricing before of see rolled out, time travel Since price fees want and show thing upfront. to impact been United pricing guests out In we've to in out, heard check of it's guests, -- be the it to world, December, transparent listening low we includes bunch spent bookings the taxes a we've spent to not total do But display. when is all on

what around of they displayed specific implementation pricing. it a we the they Now we happened that of you to people basic if I helps implementation lot of turn be show people very been a can why where price we idea positive. is off. toggle has think competitors. understand different But to there And know might there was the prices how toggle and changing and prices our The but see on than are active the why chose also can want control was lot on to speculation on response -- very as I a chose a up did -- or

impact impact the gives people short more going run the but and to a been it the has experience, again, in So actually long in better positive run, just on very control. be on is because think it's the bookings I booking neutral

search is The better now prioritizing results. listing are value in we second thing

So words, prioritizing bookings. in other total take the we're total going in the to when we're into account price price

then thing be to pricing is And final tools for showing building to so going that understand they're tools, guests. we're we're hosts they doing the third new the that price

of talk we don't when are did, One modulate they the final if And of we hosts, they paying. know the guests price to things learned some fees. the they

anything it's may add lot here second Airbnb, but short it at do long think is on you in what to a know, I do I in think more some the I don't modest the demand run, run, drive or going want have Dave, the to impacts take ADR, question.

David Stephenson

listings. the want as they're We're not the just of that appropriate a No, make are prices on think significant you in being pricing sure their helping setting hit anticipating that ADR. all to ADR key and decrease a make points I We transparent on result tools. that sure we're for host

beginning that more trends, where a experiences the comparisons consistent. we're point year-over-year reach to are So finally and on the much nights I think

exactly of than better XXXX think I it's guide XXXX, like so kind a And but years. look historic won't much

So back line a to year-over-year be to able use you'd getting for are we -- your as forecasting. trend

Operator

line Barclays. next Mario from with of comes the Your Lu question

Mario Lu

year-over-year. growth one $XXX,XXX further. I is could you number wondering number, the help down if that was break First the listings on

Just For see normalizing? completely growth say reactivated of were example, urban were portion of new versus good trying listings most travel a this these listings in to how or areas? it organic

David Stephenson

brand thing In Yes. year, we about combination each I then deactivated given some have and listings listings mean we all real the have of is have we and listings how about work. new those reactivated X. listings, listings of any think

of think I'd of been we're have the other those the right. and In I kind deactivations of in trends to words, up new fewer showing say each and strengthening our that activations. improvement of

to total contributing specific I you. the sum any more give so have And of don't is each those to breakout all of growth, our but towards other

the like the X it we by about other of the of X listing of listings again, seeing is would type. growth was think region, like the I listing urban only broad-based I Urban mean earlier is the other highlight world It X and around in questions just areas. maybe the I wasn't accelerating how growth even -- was in around then kind give were of

seen we've comes So really urban nice the back. growth where in that

dynamic own see demand. them leads demand, deactivations for this which not over both where It fewer is and organically there's we be on hard that's just to where Airbnb, tends there's to proactively time. listing It we growth. get that have get and more back our work you'll or self-healing to listings, marketplace also where

Mario Lu

In were earlier the booking the travel for year. second Europeans on lead is this And your you time mentioned summer one outlook, bookings.

just growth thinking times any and look night about lead is thus So the on puts the takes XX% year? versus pre-pandemic? room how provide the any for commentary of sustainable rest to far when globally And you consider could

David Stephenson

has book Yes. relative earlier tend to We're travel really pleased really with Europeans even the of year. European in booking to lead our to up. times historic see. to see on their great beginning here them Airbnb the summer and the been rates will coming

think, I kind optimism shows the summer. travel have Just, this that to they of

seeing then time And broad-based, we Airbnb more overall. lead slightly a just are longer generally across

for that summer shows I optimism confident think travel nice for just people they that their a So again, book can feeling season.

that. much not I think say to So than more

Operator

[Operator Instructions].

Your next Bank question of Justin of the comes with line Post from America.

Justin Post

Great.

give you secondly, the give I you in the mix results can think think of in cross-border Asia can And XX then if don't the the you months? -- Asia now you over do impacting I how but us it 'XX? in K, know China recovery about next

David Stephenson

growing -- of has still next were the fourth Asia still Asia in versus the XXXX but is region been in -- they -- months, kind I recovering, XX right? quarter. fastest down the The XXXX Yes. and mean

And long quarter, long-term travelers the the think very we for terms the of the And quarter. business on APAC that optimistic outlook it's China, we is over fourth about of about for, in in mentioned the something example, outbound bullish So term. like Brian even fourth as Chinese pretty XX% feel was opportunity. for the

Brian Chesky

as any big that's in slower means I a the is index a just area lot countries. a is market. for and cross-border of travel the Asia bit of is huge I'll recovery. slower think going reason in forward. And part. pent-up demand, Pacific don't just the Asia Airbnb. even travelers, strong is countries And for more say higher we've domestic most They maybe been been basically I us Z a one these Gen that of across think the historically suit But it's a of recovery. of is a growth thing I a why Asia think that And is And is little Asia a of market which have people probably just seen more on

really bullish over few So we're years on next the Asia.

Operator

of Walmsley Your UBS. Lloyd comes with next from question the line

Unidentified Analyst

This is Chris on for Lloyd.

you outcomes room guess XQ, levels 'XX slight can to helping XQ by lay on you ADRs very assume guidance kind 'XX of $XX.X the that rates saying as and the start your think to, billion you guide? of nights. range of out maybe would in in similar be gets bookings potentially 'XX, for Just we about I us and XQ say, gross detail a take

flat situation a -- down on to better. I to I basis be year-over-year potentially to get ADRs to talking is is what a being guess, guess, you're flat ADRs in basis. better could are need XQ? ADRs to slightly I happen here where would to on for year-over-year a

David Stephenson

in in for flat didn't Well, strong didn't be urban quite if better quite just Latin pricing? America, came come overall if to in would example, the to mix maybe cross-border as as come be Asia as there's or differently, stronger And strong.

think not regional down I year from So it maybe same, rate, of as the down be implied why you for should same for cross-border comes forecasting be slightly of it guide it and in a and anticipated that's lot And the growth a directionally forecast mix. last continued QX XXXX for rate. precisely back ADR our urban, just and will we're good the take your the look take year-over-year.

Unidentified Analyst

and to as core it. more thinking about follow-up thinking How that? Or Okay. quick the about just be talking of were the expansion experiences really the should 'XX. And we being on within we should be Got X of side maybe expansion you business product about opportunities hotel guys kind in related question opportunities.

Brian Chesky

I think just say, important are above, the network all Chris, of ways I would fill I to mean hotels gaps. a

a can't of have make people have and I they to amount to unique here to something. here we come be me But also get finding think we don't sure leave because huge they want else. people without something we come traffic, anywhere so

of can you think our product a core amount about So of our I Number has huge business few us. think one, growth a ways. ahead

providing Airbnb, the want right experience the it just each better easier providing the find value. way to making better step service And perfect by we and first so of core to

longer stays, of X/X we use emerging use a our than cases. nice Next, obviously, lot have of which emerging is book. those more are cases

out that horizon. focused also and really network And beyond services and to We gaps. are finally, over our those fill continuing new the then all we're obviously products have experiences on just

So balanced very we of above. kind have of portfolio the of all a

Operator

from the comes question next Your Kevin line Cowen. Kopelman with of

Kevin Kopelman

So quick a one.

you offsetting a guests. in $XX you Can how flow cash funds including held last repurchases? you're to allocation cash balance beyond on thinking on And share you give and billion $X behalf about potential year, stock generated the repurchases do comp? for see of Given capital update just billion an go have not on in sheet and us the

David Stephenson

billion cash stock. the cash really position, with That right? end the of of Yes. our We pleased year. ended with back of $X.X billion the $X.X sheet after is on at balance buying

exist. keep extent potential be And future. then that can and business we share balance -- million invest cash opportunities, through anticipate our have repurchases this for are in still the the year. But the approval, in We growth that cash $XXX we would in M&A left growth the repurchase to sure shareholders also primary to early for in which anticipate existing enough we and stock we're make year. will Clearly could that that sheet vehicle return the be this in to on that will mode clearly, using like can you we executing

growth. the about through is have at be that We're in to business. continue what but should stock-based that But cash shareholders. want compensation. still able to we'll we but long-term invest be return least going $X time, at to say more billion heavily are of how don't to beyond this the to to of share We'll offsetting evaluate this We anything -- to appropriate have continue and repurchases to we and keep of in amount remember, growth much I

Operator

with the line comes Ju from Credit Suisse. of question Stephen Your next

Stephen Ju

the you they seems honestly, total than the host year about host growth? as they're because the throughout because So the with aggregate a making make on get the goes more property behavior available of but host And been number historically maybe with time availability small typical talk they Do hosting been they of onboarded? it the available. has can time when more I'm like a from as disclosed, higher start the course number days we're wondering number if much and growth comfortable that's new really slots preoccupied only

Brian Chesky

casual Yes, Stephen, host is see kind can of occasionally. people we more to trend general The start. that with intent most come I Airbnb to

people surge basis, this of host saw in Phoenix, come dara past Sometimes Super big we on weekend a a listings one-off really example, for on new Bowl. for

of noticed they we to tend number hosts that available is the get generally What over and days increase year. more time, productive every

single on more and get also a add so number more listing. booked nights then a a they're see And And second, markets what upon or of in. we listing hosts third fourth depending

Their reviews. they goes get idea general eventually more as that accumulate they up more ADR the is typically nights. more book productive, host So

hosts bit new recommend is we to they more when little things the of a don't affordably. start reviews do One have

they reviews, a they little of kind command higher can as accumulate then market rate bit pricing. And

some get of are see additional reviews listings is general the we They And kind occasionally, nights. they're general people a more the to then you'll add And depending see uptick build add so ADR those upon reputation. and more to a trends segment in in.

Operator

Your the next of from JPMorgan. Anmuth comes Doug question line with

Douglas Anmuth

on your circle I just on for 'XX. comments to margins EBITDA back wanted

ADRs? lower through about? walk You cost of that Can kind talked on about thinking to little maintaining a those us the just margins you're being with more the variable efficiencies bit cost efficiencies offset you

related, of just brand bookings pull of by just should Is into shift XQ. a of that about more in kind we to more how or in a driven then the shift you're forward marketing going It spending? think sounds your strategy? And like

David Stephenson

impact margin call, we those going declines earlier margins through fixed anticipated will are EBITDA ADR headwinds this We're be discipline. be that for going the and which way to we're modestly. going that one we our but The about able to to anticipate we to continue the cost is year grow the in to grow, Yes. offset of the is decline ways talked of this on that

our X% range. of X%, think So headcount the growth X%, being in

having cost good fixed keep we'll discipline. So very

we've efforts addressed from just for strong seeing cost already of already marketing costs, minute areas and We've marketing because All just our the as costs. important infrastructure we're profitability. well, in of to in those community lot are reductions, ongoing cost us costs, support everything improvements but drive variable addressed reductions a a payments

As profitability. I offset heavy in mode. But we I list mode. in drive things not can am year. I profitability we're to long have improvements that's mentioned we'll declines, that know working earlier, also afford growth invest that maximization time. that the I on improvements then I still a in profit this with further keep variable And of in and growth we what can over our can investing ADR be can headcount cost other the

marketing in change And was way incredibly in expense. of way major a had effective step all through That's XXXX. actually in terms the to our then be from XXXX back strategic change That proven the marketing, the we've XXXX. all reduction

around timing. to seen But we've what XXXX. what getting it we the in world. costs as of even of we're about And for that percentage what as full in the year are the XXXX We're sure getting year make message same the guests is in earlier doing some to just out our be that the marketing a will is was revenue shifting

is So in season, their travel they're ready for kind kind of of to which the make bookings peak summer summer.

QX a our timing. little a just it's more forward and think bringing we're dollars. into as efficient effective more use we more bit think I the getting at so And marketing And effective of

Operator

of line comes JMP Nick next Securities. Jones Your question from with the

Nicholas Jones

go I this? the property runway board kind apartments on that much get managers? with What And of more add Airbnb get to what how friendly property Can in managers see on to start meaningfully you guess, these of it key I to to of kind like And the back markets managing guess, does apartments. do of look kind they're I unlocked?

Brian Chesky

Nick. can Yes, I start,

are started So yes, markets if from developed a I something especially people lot cities. made in appealing, moving certain we real started they of it estate mean And the because actually, more to would young that make this Airbnb inbound buildings new we we -- to that getting we started program is developers. our saying building friendly,

companies, did XX we Greystar, with Equity other partnership. we've and working a with Residential, started so over launched. And We

XXX They're have usually of -- these a typical like Houston, kind expect units buildings on Phoenix, We we kind ADR. -- the be of if they are would that vast in Jacksonville studios. put were and majority of X bedroom Airbnb,

sign number XXX days tenants can a a they The days. rent of than fixed to sublease less typically year, a

these them are lot whole get primary I people's they the homes, So landlords. we're rent they're think to to And gone. and idea a going there's is demand of of when lot because a benefits

their in landlord demand a Number of lot doing want who's they they commission. people get free building. that the visibility one, lease to on And Number their cut around apartments. a get get three, control of a what two,

with lot of So traffic based We REITs of engaging on a developers them. positive be going lot are what been many able word there's we're to we're seeing, send mouth, and to Airbnb. of think to a

being what And I we're also think of lot. quite you're us with see I landlords And if to a incremental strategic relationships United many developing is going is this think more think going Airbnb. leases so program that's And States. I happens, to apartments generally beyond the that is biggest now that a to grow friendly unlocks the all in to

Operator

from comes Your Needham. next McTernan question of the Bernie line with

Bernard McTernan

On margins.

that X flat as out contemplated helpful. like margins weighed for It And if ADRs, can guide shift 'XX, margin there's would EBITDA mix if a modestly the follow-up, shift achieve estimate in ADRs. how sounds on flat the but does that for be FX EBITDA EBITDA is you still an just in of on in So pricing pricing. impacts margins benefit come that much 'XX, mix

David Stephenson

Yes.

can not will will forecast have I tell to want impacts, sure to a fair are levers, price the we mix from giving that as order On that we -- of said, is pull said, efficiency. moderation -- shift. we're Clearly, effectively improve changes. great value. we to you the be time for seeing change overall do due host large X that amount how so I to the I over to cost we continue We're much that in ADR time, as those mean, make it to have have ADR tools I

this more can we down ADRs may neutral few if of I deliver I confident our see to EBITDA feel in And come need that we but levers, the whatever ADR more, pull then a face year. margin headwinds

again? main So end And that's second question the piece. I think your then

Bernard McTernan

much if is this EBITDA where the the FX how in Just an there estimate are generated weighed margins revenues the costs given U.S. where between are differential for on year and

David Stephenson

to probably up off-line have we follow a that. off-line on hundred mean we several Maybe million give the can work material we -- on calculation. a maybe it dollars, I you specific but was would

Operator

question next Your from comes D.A. the Tom Davidson. White with of line

Thomas White

you over or of kind metrics several during the you relative provide on guests cohorts Any last the height of guys acquired of pandemic color can the how performing have been that rates, curious any comes whether like levels, customers looks differences to, repeat don't frequency, to pre-pandemic. it be like acquired might I'm that? know, I when just meaningful spend anything it there months

David Stephenson

obviously No, acquired spend pre-COVID rates kind have the been guests. with actual take rate of frequencies consistent very

look very guests we them guests, and really good about so to new having feel consistent. So historic on very the coming and similar

Operator

the Wolfe next question of line Deepak with comes Research. Your from Mathivanan

Deepak Mathivanan

ones. couple of Just a

occupancy the flexible from on see color the of search or product how is I'm supply like I can about to or the look But the helping kind at with traditional experience trends don't XXXX talk initiatives know you on you on utilization platform? the side? in growth, nice a but it's any First, changing occupancy sense. utilization

XX%. of question, that can think higher to XXXX? remains of helps with potential stays balance. you opportunity area of that should do XXXX? product an mix it near for that that focus mix How second a initiatives obviously sort then kind for and And stable the What about we given long-term Is take marketplace of

David Stephenson

like pleased the earlier gets we as measure versus think Yes. than we at in supply we've just at is we aren't out we too to nice in If the supply growing I that Deepak, relative or growth best XXXX the that on at I look much grew growth, XX% guests had look you happy. that concern. us book Experiences of feel and one largely the very kind we're utilization shifts nights been and either not aggregate seeing in kind -- able with balanced. major this give any I'm grew to overall of want that our XX%, line in which that rate keep, any in and We of aren't and host whack in to keep supply mentioned demand, the way balance call. balance, of continue But to the keep the happy growing

of XXXX, XX% tape rewind actually then mean, nights. terms were was of the stays, of stays pre-COVID QX time. And nights. it the in long-term long-term about of I year, at the if By our end all you back the way maybe to XX%

think XX% XX%. quarter. in obviously, year, or I to So to so, XX% the it XX%, fourth was of kind Last XX%

So elevated fairly and it's stable. been

quarter. in that I stays we versus here continue growth first stays -- outpacing think see bit in we and see in is really kind to in short-term QX this a year the strong of stays short-term our growth long-term little

basis, acceleration quarter by driven here elevated XXXX it on bit in still and just down it's anticipate the just we're a over but So a mix largely rates. little coming first short-term the remaining I that significantly seeing it's

Operator

Q&A our today. for concludes over call I for closing Brian the back turn remarks. session This to

Brian Chesky

before everyone. both was team. right, results. All Revenue high And really how to and cash I us want I proud in I'm for year just record of of had say billion. recap, our I these you proud joining am To were XXXX. $X.X Thank adjusted today. we record another EBITDA free and go, flow

X has initially we our last If rebuilding from ground now business, about -- and this through the the of the what company. you years, kind of been Consumer just what up company losing XX% is think a in already confidence really demand we're some This momentum looking disciplined remains more really of QX. much a focused, becoming to strong company. inside high. seeing forward, travel And lot team the

theater I Travel that the for year. world, way Amazon, in is matter is the of people travel. going the what And is of Netflix. to happens very experience think that now world become people many like part now is now this no to the people, Mall important the want office a Zoom,

an this be to and therefore, for year going so around the exciting all And is traveling Airbnb for world.

that, we'll next quarter. with and So you all, you thank talk to

Operator

today's you concludes This Thank attending. for call. conference

disconnect. now You may

Airbnb (ABNB) 14 Feb 232022 Q4 Earnings call transcript