Earnings call transcript Q1 2023

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Operator

Good afternoon, and thank you for joining Airbnb's earnings conference call for the First Quarter of 2023.

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

Good afternoon, and welcome to Airbnb's First Quarter of 2023 Earnings Call. us joining for you today. Thank

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

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

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

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

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

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

to the With that, I will Brian. call pass

Brian Chesky

had [Technical XXX was in and start XXXX. This Thanks Booked a All now. QX I'm with excited change. strong right. joining. QX. record to to for We our everyone. over results Experiences million high afternoon, had Good share Difficulty] you We Nights All right. a

was profitable increased XX% quarter GAAP on flow a QX And most making was revenue our for free million, billion. the year-over-year. $X.X cash basis. Our this $XXX income Net

free stock billion. to In trailing This strong our sheet, our stock. Board fact, able And of of approved XX%. Because common authorization pleased up Class $X.X of our was months. A our cash billion free the our of XX-month represented repurchase repurchase a that for to cash billion basis, new on flow in XX-month a to X just balance last flow were a $X.X margin we we're $X trailing today, announce

during the Now saw of trends. number quarter, we positive really a business

uncertainties. Airbnb First, and than ever ago, in number bookers and on ever Booked Knights highest macroeconomic active our more we've Experiences are guests increased compared before. traveling of to a seen QX XX% continued despite year

for trips a we in saw booking During supporting the quarter, strong advance, further guests also backlog QX.

Second, more last guests are year. to and XX% returning QX in gross to traveling booked increased Cross-border compared overseas cities. nights

Now we by Asia travel nights the to compared this we as international time to than last were increased in Pacific XX% encouraged more saw Pacific recovery increased regions of QX year-over-year. booked continued And during other from XXX% especially Asia quarter year. the

growth seen booked Additionally, cross-border XX% America nights year-over-year. we've high-density increased year-over-year North last XX% urban booked nights And quarter. again, XX% QX in of relative with also once to increased to

Airbnb nights groups use as emerge use QX, were across total long-term over long-term of XX% stays. regions booked. guests for to are Third, all new cases gross Airbnb X longer past continuing guests and seen we've the age stays. for In years, And stays use

and and America. with supply accelerate. America QX. world the to Urban supply growth We And this and grew in XX% double-digit up QX, grew fastest continued growth saw In year-over-year, growth in supply finally, fact, both nonurban we growth, Latin from in XX%. is supply the XX% North around

priorities. we our ahead, on looking remain focused Now strategic X

for started and on our to it hosting, hosts. traveling raising to be popular our better easier awareness We as mainstream. making do this, hosting as around is tools working. making we're to First, And get hosting we're Airbnb. And providing approach want even

In active acceleration fact, our in seen year-over-year the went we growth total every of quarter in listings. since public, have we

perfecting we're also original from This as Airbnb our rising direct Last guests input part service XX feedback want rollout on over of people we with new love introduced features on week, more. our pricing service. our tools, checkout was And on obsessing Rooms, We customer all-new hosts. and single Release. Second, and over take and we to of XXXX core every instructions, detail. prices, our based Airbnb. Summer that and means launched transparent included service, the faster the to we upgrades an Everything responded

a about bit what going more in to a I'm launched will be share moment. Now little

core. expanding And our finally, we're beyond

We have some services many for next. big launch At new beyond. is that we foundation markets still time, and in the XXXX to world. building We're ideas plan same and Airbnb for where underpenetrated in to the the Airbnb take around products

and So markets, mature we're positive focus increasing our are these we less on already results. seeing

rolled we this for let expansion they fastest-growing in fact, a we So give playbook now has, X our just as In so playbook And growth. now out Germany are X examples. -- worked me And accelerated markets. are and result, of our Brazil, X you well.

expanding now to world. other it around markets the are we So

to hosted with And world. with analyzed of and hosts and the all every a feedback go most unveiled X, the our Rooms May And over upgrades and created improvements Airbnb, our on prioritized introduced We design-driven sessions social and blueprint customer a community. policy over new the to of Now before bit all want mapped the little questions, core of to every extensive took interaction this it screen, every approach to for we we blueprint about our And then feedback we on XXXX common of most thousands Summer we a We Airbnb and service. and calls and millions service. entire Last we introduced hosts. was Release. all guests we against issues. our I features week, and posts. media perfecting ever XX from We listening talk set based guests experience:

few you. a So with let me share highlights

told fees the across display. price aren't prices total entire Guests total now app. enough. total us, display, taxes our price can With guests before transparent price is view the First with

tools that it's pricing it's charge. heard the pricing what Second, tools, to hard for new know use our difficult hosts. from to and We hosts

So other now in in to discounts we and demand our booked finally, well Airbnbs are more hosts help it that as promotions hosts. this for and can made listings to high both they area. see simpler listings add priced prices, are set not. And their are also competitive And includes that getting as

U.S. Longer save with money discounts doing We're X easily it. monthly account, set their is third and can by stays. we're stays And hosts on cancellations. few affordable reducing guests things bank now can offer paying more a flexible about fees expensive, after months. so more be and Airbnb can our

Rooms, introduced of travel, an started our it all, back sharing. with the of ethos all-new And take ways $XX night. Rooms the a also to we most Airbnb to an Room. original Airbnb on also Private only gets us of Finally, one Airbnb average founding that price they're idea the of back affordable

staying us the XX% a want Rooms with affordably. over travel fact, know more who book. In they're macroeconomic have in of about guests to $XXX But to Airbnb they before they current want that told are night. people environment, under And

to with passport, guests every helps host So a that's which Room comes get Airbnb host their book. before know why they

X,XXX top coverage is we XXXX and But Release media, overwhelmingly the heard was XX the like will most This over stop impressions. the million that ever and social we've our If concerns. important our has had done most on never from It wide On to In thing Press not really their hosts response listening, feel our improving listening our we Airbnb. we're expectations. to went launch. social. guests Tweets and Summer far got exceeded got positive, and it we're is articles. press week our last

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

Operator

Sachs. go Eric We'll Sheridan Goldman at to Instructions]. [Operator first

Eric Sheridan

Release in and back from to I you to couple platform of help the understand want months? think the and better traveler a it come terms XX to out next supply what growth generating you days of to back of you look over with Can ago will come coupled generating the do room. concept the XX, as and demand us new Summer growth that

Brian Chesky

I'm are Yes, How Yes. here. you doing?

environment, of Airbnb of the things are looking especially because about doing on guests economic to affordable on they a for price travel they Rooms, Airbnb. been night. Airbnb. I'm to listening Airbnb one And most Airbnb. ways of very told travel We've to of lot affordable this $XX in one us on a is ways average is, the excited the Rooms And is Rooms So Airbnb

interested XX-year-old next it's the an more that we going a product we to do in what and economy that a launch also incredible that me in, wanted. launch could Essentially, very that affordability to So we is to product this of to I think are offer would be wanted segment thought product be a capture this will people value. the more have relevant travelers. and wanted generation And

And obstacle. our over had rooms we listings there already an world, we looked all product, X of the at million a and was bit private but

before weren't to more we they the one with with needed realized to comfortable people host pandemic, comfortable, the book. staying we staying And During people another. they're get help that understand people

the that's Airbnb so we launched Host why And Passport.

Airbnb of local think money save help Rooms. be encouraged is travel are are the this I people interested experience, a that in lot in stay going to to and looking to

bathroom there's a Rooms. lock And to the We we to all door, Airbnb private. also added are the different these features new is features if in help definitely privacy if going understand bedroom think

people thing have going Rooms. Eric, able list think is new Airbnb travelers, to to campaign are be cohort summer, I'm The Airbnb. and inclined overall coming brand whole may for major we we marketplace going in should travel are weren't say, to a be bring hopefully final younger to successful, maybe where we now I is to the travel promoting going of this If that a this that

Operator

Patterson Justin KeyBanc. to at move we'll Next,

Justin Patterson

being Release. can, of I some if how might just some question up Brian, made you a the on going experience into forward. talk you the So you forward comments around and or Airbnb helps lean around Eric's AI initiatives recently that AI? you opportunity Summer reshapes reimagine going about Could follow about for travel first, meaningful the to

And guidepost you guidance. only on I then explicit year give full appreciate Dave, the versus

bit more in the around dynamic understand the a and half new night Given well some year-over-year second assumptions of about shift us and the as that help little as you flattish tools pricing go expense could Summer the Release, the into margin? QX comp in room

Brian Chesky

I I'll since bigger. bit Valley. give of with might certainly test people you a an even AI. be Well, platform as Internet, This as big Justin, the of AI. shift biggest the about revolution start, it overview Silicon Great. a is we think And think of of and I to certainly came why don't kind and many It's how

base the The major the large those on all of Google GPT-X. as are base reaches Microsoft built model. this going a So think is models, investments. of couple to be has Entropic. language like models, models, base of infrastructure These

dollars models the cost of of towards power. tens Some these billions might of compute

And company. not an we're the going and going like top think It's base to to AI, that And a to the on design In words, on that. we're do so We're the the we're on project. infrastructure of the building a interface other cars model of essentially highway. tuning top as major of build not infrastructure of model. But going highway. the

base tuning of top is the on So the of model. the model

going model just to paint on you customer I'll And the a the based of data the is And picture you. for have. tuning be

doesn't to to question it's the to ask of ChatGPT, about between same the get pretty both If close and much doesn't if answer. I, to a going you a answer know the And were same question know pretty we're is I going us to both reason were are get ask us. that ChatGPT ChatGPT, and you because to anything

that totally is it far destination it matching aren't But really fine in search lot to this questions, travel this like out of that many questions questions. They're a is Now from questions. destination. how for turns

the they're are. and depends is, answer your Another that on questions what preferences who are you

more going you you about is I a who to going of going fundamental do to robust about different. when want? build Airbnb questions: example, you going, learn for pretty questions Instead think like you And where forward, asking and and are you? be us X you are you ask what and are you, want I So profile bigger that more

these we that role is a Airbnb what are is global we sense what and And guests product. build to partly other learn not that accommodations, a service with to Host community. the the of of ultimately, to travel hosts. think tune This know ultimate you travel and And is community in or model. a we're people. We largest why travel job you. about the Passport. interfaces, want concierge But our world-class understand eventually be is more and then could in travel. our companies, the our And And Airbnb investing AI AI just is building other we lot to could to Unlike things about more ultimate match continue Think services as host. the is I building a us beyond travel most

big So to going where that's go. of vision we're the

I think expanding it's an incredibly opportunity.

I'll you is giving one we're customer to just the going be be XX months. Number by to is of tactical end benefits biggest doing going the some things Airbnb. in service. one to This next

Airbnb is our is strengths that service offering the is of The kind. a one Airbnb's Airbnb of of also of problem One one is with kind. a

a less hotel. consistent historically therefore, And so than

service to people we literally hotels from can millions Airbnb every I on think staying Airbnb field front they a have call imagine customer playing doesn't. desk, relative perspective But because of night. And level service. AI hotels the have

We to user between have XX agents different that policies. adjudicate have

deck, Some XXX I these one. that are and this augmenting of And later That's AI a all improvement faster agents. is year bit to service, What do think number as is transformation. going able better year. on huge a by next be be many us cheaper into It's is be pages give long. to to used going the something this to hands is and as

ChatGPT. before one And think one partners it. of right widgets example. is in give And the were on interface OpenAI two, is the the decided is I few literally more reason I were that interface the available GPT-X OpenAI pure the product. building for actually much ago, why told to our plug-ins. are But AI I you not photo. travel. space right decided now we into our launched Sam, tech our I Number rich to launch first an to for It's let be plug-ins on for work fact, It's bottom And media. with the probably the me we plug Ultimately, months that we pull supposed multimodal. of the And It's of launch, just travel before with him at the right was It's video. in interface immersive. app. A

I for So think we're going the to real interface. opportunity be that's our building GPT-X And us. into

built changes should AI some next see with you So big year into our app.

developer is and say our I'll generally. productivity thing final of The productivity workforce

will like employees easily XX% especially our through developers, significantly in be, to could Copilot. greater medium more tools productive think short I our the term, allow GitHub's and throughput this

this So term term. on all say, to I'm really of excited is the and long the short

right having we're to this if revolution. be the the at any in kind thing I of of going innovative And benefit That's features the going indication, the the have most is just think over most last of are the to the say that 'XXs be with is happened companies I'll think And companies cultures. the the XXX innovations, from of shift Internet. last of I definitely years what will launched that couple AI forefront

David Stephenson

ever we're since, made of get the we And efficiency, right? of operating profitability, COVID our rationalize some And midst focused, in in profitability made it. the back where roots. streamline proud progress difficult in we've progress company, our choices just done that made in terms of very substantial really to we've our and the to get We

community We've We've anything We made changes our only to costs, going of of improvements overall. headcount of forward our costs. have marketing our grown we our efficiency, mode. And since. infrastructure cost operating obviously payments in kind substantial been good great rebounded, that for even operating in XX%. make reduced because support kind by it to our to businesses has continue Basically, strong from as rigorous company stuck better, progress core become a we to us more operating moderately

cost community And be of anticipate support, the ADRs, in so any in of improvements daily in even average year, rates. to infrastructure, to our to cost will as going moderation enough make we fixed continue we're that and seeing leverage offset this payments pressures we're the that

Operator

Evercore to Mark of ISI. next Mahaney We'll go

Mark Mahaney

the that you Brazil Brian, this fastest-growing on that more we that talked markets bit, could about? replicable about that you be space, this that any how Germany other Across If there's you anything you your questions. being caused year. think Dave, -- just marketing your up travel really can perspective, specific kind X of Two double-click And then say is? a those did that be commentary dynamic helpful. to and that become costs in accelerate much markets, those loaded would to why efforts examples would could on so secondly, front-end of online of from there's little the

Brian Chesky

sure. don't take you Dave, one? why Yes, the first

David Stephenson

Mark. Yes. Thanks, Great.

earlier In full mean our front-loading in just like marketing on marketing we marketing. out in with terms in can that kind reap that we to what of of this operate brand travel we that such success do earlier of learning investments great the we out better. our investment the the I return year, just of that brand we year. we're had to The more seen get learned felt season last is And we message get the it's year. that the costs better year, for year, strong our ahead in needed even summer campaigns, peak

this So earlier. marketing kind the about purely is up spend moving brand on of

it of market marketing, haven't into that is of And to actually element these it lesser brand geographies expanding countries. had a some more historically new is where in well, we as but an extent, investing so and

the just It's So revenue our largely it the earlier. in message will same more percentage of was as to get the that as marketing we're remain XXXX. a marketing out expenses front-loading in XXXX

Brian Chesky

share Mark, bit Germany. just about Brazil I'll little And and a Yes.

ground, just It in made regions. a included ago, as international and really although need some included that was countries generally, in it's the world. most the many many influencers the added And expand full only included And having in States. adequately campaign We're product And and to of well. our one that. a playbook these And the and people outside sure funnel we've social a is on playbook companies United media brand XXX markets developed marketing we Airbnb So approach. PR, that now localized. years internationally

on that's like expansion. focused because the focused course the recently, over were new on segments So of the we travel as pandemic, mainly and longer-term stay. not And we're some of international recovery

X Over is really, you our as company basics gotten know, back the obviously, we've years, focused, more to last really and profitable. significantly

over billion in free Now flow. we've done XX-month cash $X.X trailing

So we focus feel really on like now good international to is a time expansion.

Brazil. So and we with Germany started

was campaigns again, markets, And in lot to to our ad United funnel. involved it the brand of It our these with localizing bringing involve and full States influencers. product marketing a It marketing, PRs. pricing local working

incredibly a of These it's full pretty results positive. our approach. now been So fastest-growing have The are markets. funnel X

I'll much Asia know, borders And in with Number is cross-border Pacific. the We're being a playbook bringing of has problem been massively kind other We very is a much hasn't last recovery looking down been going is years. Asia. locked underpenetrated. as So delayed. market think market, you Asia with the travel, fastest-growing one opportunity few we're now This huge couple years X you at the around And to over of to markets probably there's in historically is the this market. give the examples. there world. the the And as and Asia historically next internationally over be a Asia

you are is people Airbnb, know, lot young young a the among Asia travelers. has to of travelers. popular And travel, very as Now disproportionately starting and

Korea, to and Japan, going for are opportunities India Asia be think huge we So China, Southeast growth.

lot We're in We're big U.K. a seeing very markets big very But France. We're Europe. great now in growth Germany. the is in Europe. of Next in there's

ever We brand run haven't marketing really robust campaigns.

we we greenfield actually at in really in of because Northern Now lot the Italy. in I France aggressive can like see we're big And of a Spain, in looking really aggressive getting Europe think focused getting few other in more the more Europe. markets really markets. countries we've only a We're and we're Europe. markets focus penetration in strong. we U.K., now there's have And And and are think big now similar I we when on other

bring Latin some is large finally and a then we're within growth to markets other going seeing We're America. really in markets, And Brazil, it America. to now and other Latin of like some lot Colombia

international pretty over is be growth think boom a I to big the X years. So to next going X,

every vary one I've much is And Airbnb to every The playbook especially, effect the country because market. works a it in quite works with very learned Airbnb thing doesn't about no it's much. different how It matter that have well cross-border network business. is,

David Stephenson

I of -- us been well remains leave unpaid, Yes, that our continues the since that's the question so case to and traffic working case. without reinforcing just don't how playbook the to just want and for is COVID direct be playbook or XX% the the and

So well very is for this working investment us.

Operator

We'll move Bernstein. next to Richard Clarke at Sanford

Richard Clarke

about I supply very to that to if how to the point, showing about quickly, the supply seen talking demand. of the I Any about impact way conversions? extrapolating we the And impact growing shifted the that XX%, you just the full at XX% of XX% you've from control right like been at XX%. Should numbers Which Is may. What's or you growth year pointing those to you change? then QX Is you're supply? you're guess mentioned hold that? obviously growing forward? Two, be impacting XX%? against but to more maybe one impacting XX% is think going prices. that demand I results, guess this the

Brian Chesky

economy for major grows there's affordability issue. than prices great when up. prices happened as what Yes. And don't is is were supply and a faster generally XXXX, faster our a I supply at If been go that grew bottom supply. a high as be problem start good growth was the only long-term out, to that's constraints, going this demand this initially, as as the have And to strong Richard, in we in risen, than is thing. demand XXXX, our line, level? But back I while supply. why think

most affordable the make enough the have And of we things to so can we to do one make is sure platform. important Airbnb supply in

we And as initiative Mainstreaming a identified mainstream growth we we The as wanted called is And Hosting. hosting to and number did easy it of year in we major needed to really initiative so mainstream ago, that things. a strategic we created idea traveling. supply be an hosting, need to and we a as said, cool. order We to make safe, accelerate,

top one So to we the we first years. for be which offers launched many time AirCover, else bottom protection. marketing is up, set No campaigns some it. They're going and to in did

seen, incremental up. XXX,XXX the going quarter all We've It's happen every My that travelers whole is generation in actually of market think to demand to hope going know, listings. moderate. a since drive accelerating bring as We I you IPO. to out keep is Airbnb. supply the expect what's will going we from hotel that's And the they now prices CEOs since this coming the think new summer, while prices of have said, to single up have want to prices

ultimately, are we to wider I selection, more with come the important Amazon, very, more Airbnb. are the people just marketplace. like that of a very The So that's more affordable the consideration -- affordable like a -- think will we

So level. that's the high

an turn cleaning in a fees. know, of issue. going And bit is I where or listings are sure to we in the people listings guests. single fees. value practice it's a best this to this with good to going marketplace is that price think toggle, rewarding those remains do, Now overall the the U.S. competitive. listings, But of really the U.S., a lower And there what to heard had demand think a demand some push going price, the host total better cleaning making cleaning I total from that lot was every you regard are fees higher with an hosts total price people we And as price. hosts primarily -- And have booking on display to see issue to have and a value of no is the driving when

We months. December. have It's to So coming set this we'll how everyone, the out available plays it's beginning. in just pilot see a to so in now

expectation our affordability. we of around my on what is But a launched last features based release lot week,

to now We affordable continue stay more competitive products. to to more much the number this monthly request We're since. to allow going We continue hopefully, many hosts going is address more add is Hosts monthly which discounts. supply. And have prices. discounts, have of affordable stay offer -- weekly stay one set to travelers,

David Stephenson

Let impact on points. the has neutral business. two And more really of actually me add oil seeing is what gone a overall price The well. we're implementation our

want , worked The don't seeing which who So make the in selection. we've that can to see all pricing, has about care And implemented, the it it those selection. like most quite well. people the that they other marketplaces even make

not the to ambition. XX% XX% to our nights long-term back -- is growth growth other the then rates, And

amount quarter. that comparison You in in compressed for hard of which a that came in quarter, the comparison growth a year. travel the and of Remember remember last significant variant QX that versus Omicron, second here we second hard to delayed makes people have COVID into the their nice QX, large travel have do out a

Operator

We'll question at our next take Morgan Nowak from Stanley. Brian

Brian Nowak

two. have I

about Brian, one, to first economy. just issue last go to back The is how your answer in affordability an the

lower platform, or shorter user changes conversion yet? Airbnb traffic sort impacts of the the on price-sensitive platform more of trade first price that have one. any seen That's the On signs or or you stays down of

back to well. answer last to the go as one, actually, Then Dave, your second

that about should similar? the to lot how think How the or spoken through the the around reasonable XQ, comp the how about in moving thinking a a past, was about shape room quite of structure of think there's and nights we bookings shape are of the pieces comps year. XQ for I think you've that of XXXX now way year, sort the the but

Brian Chesky

second, take David, the want on get and do the first? with to I'll you

David Stephenson

it than Yes. impact probably of shape has kind I nights And has mean, been hard of the of the impacted on shape obviously, the to exact revenue. demand. perfectly demand Omicron more predict

revenue that of of that the seeing, the frankly, the growth second pressures that America. we're seeing North think the especially as ADR growth is that and we're quarter. we overall see has, on I elevated rates continue just guide just We have revenue in been overall XX% there kind kind some to And revenue of pricing, XX% in some higher between of here

some in travel. of areas like seeing year we're that of in lot future Latin that But America, the Asia for half the about, Brian in acceleration growth the a Pacific spoke acceleration of back things cross-border or more continued tailwinds and the

are those in some the than bit more tougher bookings we're demand QX I year. but half time for of things out books turning seeing of Omicron this in this little benefits the for to stable the a comp that of half back the given we're this have we So on back the think last year, year. overall is last be the half. year back at we the year We the highlighted time letter XX% did seeing

gives just half. interest the it So back travel and people's us for confidence in in willingness

Brian Chesky

the United And States. sensitive, States, first seeing, the that people what especially currently are least at is in And in price America, which the question, we're I take is price the can listings have United highest Brian, occupancy. just lowest most North

listings so that people affordable especially normalize, Airbnb why very prospect years Airbnb and we're for traveled want price Gen people options, to over increase we're also in have to bring increase Airbnb to really as low want the just So for next that not continue hotels not rates our as before, occupancy Rooms, new and expect see And the Airbnb that to that couple travelers in going but listings. to really rates more we hopefully, never do continued yes, Z. about bullish partly fast of do much is

Operator

Citi. go to at Josey we'll Ron Next,

Ronald Josey

Brian, wanted you bit new a I more about about the the the economy overall. And core. talked ask vision for ideas Airbnb expanding for to little or products

mentioned past and I and local for we've in other the the other ideas. think services listings sponsored marketplace host

little bit just the more you any progressing? experiences the to recent expanding how on So us quick that the And feel just about think core you too, rebuild, economy? sort follow-up, and for on on calls of a is just insights a about Airbnb vision experience, product talk that then how the

Brian Chesky

great, Yes, questions. Ron, mean, great I

already the before Just to back, expanding beyond focused step kind were core. the pandemic, on we of really

had had Airbnb. We a We at a division. divisions Home division. we fact, Magazine division. had Experience division. We a We In added XX an Transportation different had

efforts. So back a occurred, we had and to focused we of And obviously, pandemic get lot the then had basics. to

what on to new work things, wanted service. the is we we years And to last we our core do over perfect wanted before few

iPhone, out but I great many mid-XXXXs, and of Apple us a launched had to Apple. phone? was And inspiration wanted of was lot with But XXXX, remember not One gateway I the come out in of how answer come because And had of the love it to wanted is And source the phone not And Apple didn't yet computer. a with wanted is the reason their gateway us they is love to many the Apple iPod. we their people. expand people answer our phone? probably how a of many, the because

of people one we love core need team service. first that the to beyond our We have things we core. think our to permission is opportunities, so expansion I've told And I need expand numerous but our

that's why focused over So last the really we've been service. on years, core X our perfecting

being than our more service profitable than beyond now think That stronger to It's is we're core ready the expand core. ever. ever. I And said,

new are things in be to And we're see come. and Summer So next are on as services. years new going next services the we a ship and Release. to going XXXX May speak, the shift products more as year These see even actively shipping. going you're and the to part later we year, Beginning number working of of to things products

not lot detail. Now a I'm a services. of host obviously, lot there's to opportunities. going into guest There's go of there's services,

is tune I front obviously biggest X But to think I don't to have of idea my think I that think important talk. You had I biggest it to [indiscernible] the in cofounders. will to in are when idea working want Airbnb I was has that ever the that note us. XX

an core, is can our Airbnb of including more we beyond build I in the increase what but within profile, model, can we part is And core. just learn then to think so continue And trust go to the robust adjacencies then do continue it that, extensible into sure making offer. there's expand much build platform. platform that more,

opportunities. of new I So a to lot see going think you're

to product. regards about I the Experiences, With remain bullish

Experiences. us a I think we're there Whether still to huge whether around to have is someone that. a prove we product, it's and product massive opportunity able execute for build to that

is of One early. investors too one a lot -- and of ideas great my is bad Andreessen. He And experiences. that said of just our early timing Marc investors life there's ideas, are no

launched It leading it early. probably when launched right like the in XXXX, into pandemic. I was we think

did submissions. better. on timing a I now decided, probably is the let's new we think as pause we take But

to Let's put even relevant out something this are hopefully for more is retool things to the generation looking do. next that and product that

really of remain this. on I bullish So all

Operator

next to Barclays. Mario go We'll at Lu

Mario Lu

Great.

came is quarter. expected better It in first than one the first on The ADRs.

You India be out year guys the expected mid-single saw to for still that is down And growth its growth. region to digits? mentioned, point to then Anything within strength? full X%

Brian Chesky

Dave?

David Stephenson

and Yes. kind rates how On daily interesting have across has higher it's the that remained, of been consistent ADRs, persistently globe. average been

that even rates more we high. saw persistently North the particularly, I in been America ADR think have

So lot many even affordability reasons on of of and we've so making of Rooms talked for finding tools are call that about Airbnb that our host better. capabilities getting price why like tools we're and the these that sure -- for good and guests launching been of the a Brian for has things the kind a

make our that great to Latin to on giving we're the continue we a here to Europe, And as think anything and bit growth don't say except in quarter. should moderate ADRs, continue sure that, have guests. we I see America that So value to we want the in more second to Asia,

still I In year-over-year that in in really terms the ADR mid-single-digit year of think, full should on kind growth expectations probably no our ADR range. of in down be, change There's expectations, growth.

Mario Lu

Got it. And is the on then second competition. question

your of in July U.S. One program the launching in loyalty competitors is a

you one? things to are you data with regards can curious is to if threat that points percentage what business potential of you have since don't any And platform? share the a think Just exclusive your to

Brian Chesky

of products, really strong that XX% products. we program I to direct is reason loving if I believe always and nearly your organic, And is rebooker best that's our come think have rate. your back. loyalty love the traffic they And why the they people

have on love So I just Airbnb And mean we experience. because loyalty it's ultimately, think program innovate. haven't the loyalty a a have I to people to good matter really needed to really of continuing

the People as and in be customer good most and quickly the focused want feedback, leaps to And think and I giant business. on taking as we're whatever to successful. innovating it's most possible the have inspiration company is wins. experiences, best the trip listing Ultimately, trips, going

So we're really bullish about this.

classic the very thinking think being said, to and But for years, interesting that actively ways us. at for is compelling, to best really there's right subsidy program, looked do a which I a Now guests And think loyalty is a we we've loyalty point buy program. we've about. approach reward something been essentially don't our

Operator

We'll our Jones Nick JMP of next take Securities. question from

Nicholas Jones

of outlook a So guests a you're hosts lot is release, of the solutions to for ADR and adding comments some pressure. like contributing this little great the and the sounds in bit

of of for continue efforts? ADR efforts supply you to there Is do as compression it to balance to these a how incremental a demand to increase risk result some supply? making So of the available while supply, redistributing join easier

Brian Chesky

Nick, I start. can

is to I and sauce supply So our think ability of secret demand. our balance I try mean, elegantly part to really

seen finds One itself. has is things of the great marketplace a natural the in we've equilibrium it that

be also demand. markets fastest-growing to are the fastest-growing of turned the market example, for For supply out

it creates then individual is ends their tell up They these nights. increases. bunch The and They they ends happening money, what days booked. booked start within vast of making up open hosts So lot supply supply, tend is if a to get what majority up obviously. And a of of them get listing. happening of demand more friends about

tactics. found number But we've a also of

marketing and demand. important is In of as we use companies Other customers. balance a supply a that business to buy an arbitrage to way fact, tend performance very lot it

attract more that that We in think supply will of laser, as And markets have on the never have ultimately to think frankly, supply demand. in and supply value We great the to laser thought really we're way. more of world. a the over performance we listings we it more balancing all add, really demand going marketing

we're think able this I So out throughout balance coming to year. the

Operator

Mr. Kelly with Oppenheimer.

Jed Kelly

of apartments supply rooms in forward? comment stronger backlog Letter And initiative current XQ and year the that going apartments' to ago, that And a with just and it take world? your growing you a Europe other question, the reconcile back then the the seasonality being normal is U.S. Shareholder can it in nights my second Brian, done going how trends should than you guide? was the in approximately Just with expect regions XX% you've implement and job of of we great Can

David Stephenson

Yes, on it's think the what just demand. demonstrating XX%, in I doing strength is I mean, the

of think they -- I to the than much QX, here historically. what you if earlier booked in go people beginning back have XXXX

booking we back the rates year. longer So had for the overall half of

that seeing strength. we're So

why the earlier growth rate And so backlog. that in the shifts extent to demand just the year, in that, that's

given period. higher it so be nights projecting we than kind And what are of in any for will

of direct the demand in kind North booked, a America. terms are and of seeing we isn't of what the is translation across In but demand I percentage very normalcy, think globe to as -- strong nights backlog it's specific stable

Brian Chesky

Airbnb-friendly question. you say the And are you referring apartment? Jed, apartments, just to clarify to When

Jed Kelly

Yes.

Brian Chesky

they'll take and landlords With offers?

Jed Kelly

Yes. that? Yes, can do you

Brian Chesky

Yes, States this to started concept. all believe thought about that first the yes. Yes. have, We think, over was wanted can start. of that a be as place We United XXX proof Obviously, buildings. to We now the over XXX%, We XXX expanded with world. I buildings. use we

has America are work. landlords, expectation, concept. and assuming this have to developers Europe, it biggest estate least is the been going love of And and We platform. some of all proof Latin bring that's at Greystar But then America this real yes, our our If to works, actually and exceeded Asia. response to on the from indications in we'd

Operator

America. Bank at We'll of move next Justin to Post

Justin Post

guess Great. A I of about the thing questions. first couple competition.

differences the As think booking. the might there? Europe? in you your there's big about weighted about competitor host host? well talk you model a think see you where you do And into the in how both versus guest Do to that heavily works the more charge Europe, Can move and you you

timing should spend, different. marketing definitely think about the you How prior seems year on do ROIs think it we Dave, like this that? How for maybe marketing then versus And about is the years?

Brian Chesky

you to first? take second Dave, the want do question

David Stephenson

overall of the ROIs, we've And again, No, that mean, strategy. -- seen happy XX% does marketing very with Sure. I'm on remains our into markets. great marketing traffic our pleased paid strong, returns. that we're the why quite is some which that our I direct-run and the returns expanding marketing I'm brand been have of

high ROIs to Also, the we're incremental do has been making profit, search drive and good, there and quite engine opportunities return so. maintaining we our on we where marketing that have sure

approach marketing add and with have works like to I the good timing amplify social about I that and Brazil funnel and that's well success making. here like in we overall improved So we're have of full search kind XXXX. Brian engine in PR, things brand And that this the that really approach and feel really like investment full that marketing talking the I is about. we our We in we're funnel Germany. seeing and

Brian Chesky

answer to before Yes. And model maybe, also I Justin, about Europe, our I just want something. add in

brand is marketing, marketing. their most performance paid with travel basically right, So marketing like strategy and companies,

that to is press PR mean have was social for X/X huge a largest want Historically, than the we of media X,XXX voice IPO. of travel. we callout just a got of benefit to I in share the amount is week, I think like Last Airbnb. make I articles. got more we

be think for pop PR lot cetera, of minds, to cetera. and in movies, to people's Airbnb in songs, social and we TV a shows, on there's that and et opportunity continue front So media center even culture et in

part than earned the more because story And the media. think earned a and international media expansion then paid is really important the both international and trust of paid game I So media media media. creates of is earned really name

the thing Now we just I one with regards to models. Europe, out point actually both is to have want

fee where we model guest a host fee. and have a have We

and have a We property host hosts, I for a especially total Ultimately, price also guests. we larger fee. it's issue model this can our choose, don't think a choice for have managers. And major have where especially we of with display, kind for host-only

at change. seen to a be going I behavior not they're we've looking think the ultimately, total major price. And

savvy. more I option product of showing on think, partly total people price. most price. towards an that yes, trained And sensitive getting we total why They're our moved they're They're to price. is becoming total

we we total As offer as care best I the as the long value long to what guests about. and overall remain think best going the ultimately that's price, competitive, product offer for as are we

Operator

Instructions]. Suisse. We'll Ju go Credit Stephen to at [Operator next

Stephen Ju

So the I'll Brian, in pay time way. propensity plans use and ask of to world parts of can this you Between product? to talk the a as Rooms Airbnb this given And I another like the about other like type guess time, eventual users audience. rollout seems Brazil, pay it for over among over are you to there question expand position your

to with much bargain like may potentially looks shopper? levels can higher demand you you latent talk unlock about So service how what that

Brian Chesky

Yes.

So talk. I'll

is a the notice on things what you'll week I based affordability. of of mean, our updates were lot -- One last

which we we Klarna, over can installments. in a announced partnership time. as as pay many So is X pay with

don't also by pay to I want bank then because essentially monthly we for costs. what you pay can add, This card also important a increase have account by basically credit where really partnership means Stripe, would lowering stay. announced to with it pay is and also you to conversion for is rent

even of over work, world. people doubt United pay the the all of starting And more United is be in assuming to than really lot focused. similar in these we're partnerships the States. markets no in And payment And correct, going you're a to these spanning So lot of what installments a focused we're countries, Airbnb-friendly apartment. to services these we're on kind States,

indications like markets this absolutely be a this more So emerging be to globally. are like it our end the expanding States the right like the just established in I product markets, compelling will yes, going very successful. over offering. Brazil very to is think before But markets, get all world, We United

a company biggest always thing yes. year. about far them is next people the is ultimately, continue bookers. definitely the great And able as I young to for be every you to any market our continue the brand be mean I boom young to as you're mean, generation. going ride audience, opportunity growth. the to relevant Now of going that's expanding for for can that to most be audience, more a if first-time then And

is years thing XX And ago, I and young a lot of friends my didn't the great XX, and was have about I people money.

Now have much families many we more we're have us older, of and money.

more fees bar cleaning that of come Rooms between then a with to of they'll [indiscernible], example, other I to next will entry-level is grow And think that It's to maybe none. travelers, Airbnb and is a way what buy that for allowing said I noticed, important affordably, price, great discount and way diapers you generation example, when is I I should want down is if see very think You Rooms used a great the products things. the one a us. other to an families, like so Airbnb product people to product. products, in then have for entry diapers And I travelers Gary we we're the This which to think about do introduce travel, to price Airbnb. hosts extreme to total but Airbnb. pricing Rooms Amazon really tool for he affordable capture see I most new think And the going you was talk it, for need and right? Airbnb

Operator

to go Colantuoni We'll John next Jefferies. at

John Colantuoni

active suburban sales the you overall, do What this the of hosts the the quarter Active with shape these vacation on recent can quarters. marketing sort marketing listings, portion front-end urban the loaded spending look of listings of expanded are how cetera? and existing you these et destinations, throughout just through to versus your of investments, more compare profile portfolio? versus walk than has year? on individuals, Then listings brand When new at

Brian Chesky

don't both, take Yes, why please? Dave, you

David Stephenson

Sure.

into about we more front-end bringing marketing our year and loading during here I marketing are especially think talked the on brand that QX shape we the QX. in of spend,

they So higher year. then costs the were as be the prior full it QX in than roughly in it's for year. the marketing several hundred will last basis in QX same points year, And total was

to shape or So of beyond don't much on that. have marketing say the I kind more

to know think the I of been cater active those make our we they is it individual strength home are it's payment hosts. easy listings, terms the hosts, is host to that. They on And that's hosts. to list. well great is is bringing for In individual through And them the We continued of for needs their because we been give that we're new individual require. of we focused those see host and All continues what's stable our AirCover the And on professional that making to -- for remained were our sure host in mix that that individual so our The of easier has case. give which things that individuals. capabilities, this support be really XX% customer what's protected. them great that business, hosts, that tools very

have to grow where we tends is that's demand. it biggest interesting the been thing listings other just our The growth about overall

the as line growth so back, And with urban areas -- of kind urban our in kept has that come growth. been

And around right expanding so along keep come we as business the increasing listings our and world, with it. the

Operator

JPMorgan. We'll go Anmuth to at Doug next

Douglas Anmuth

normalization about versus if more Are want to in and of ask long-term more fees the coming in stays? shift just periods. recent just payments some I base I moves it mix you or economy down really towards kind long-term a the of about with know of talked shorter up. issue stays slowing changes

Brian Chesky

pandemic, say they saw, to step it's been fastest-growing long-term our what just length. trip think even I and have important segment and stays back Doug, was that the that we before were by growing,

world pandemic probably for never before the some huge way going back we're it the inevitable did what I And to was there's also think growth the opportunity I us. pandemic. is and think accelerated the

little bit mix nights urban we're stays. cross-border do think now up. That said, starting because being extremely there post-pandemic you're a I some see. are bullish I a And on also to of long-term remain is equilibrium seeing that shift

going people X holidays. they're for years. the workforces. going people permanently to think more the Airbnb be Even the ultimately, incremental going for More of the summer, And one next want think people see more back an to flexible. is with distributed away and more big having is see why may bosses to opportunities And office, reason you're that going are the going flexibility. I more AI, away people growth people I over of the to because acceleration for be global this

to all the sometimes we've short-term here stays are betting stay to is just long-term what we're it product to to platform do Airbnb, stay was more on was gotten So But for that's little you stay, book to and believe have long-term stay is our Zoom expensive on. biggest long-term believe stays. on here built a was because feedback the

So to we based and made long-term on affordability. more over a lot a dozen upgrades stays of

that dial starting So monthly from was X dial with Airbnb. stays, we for a -- to monthly allows you which have on you an really to a wheel like year now month really to discover search cool quick

bank pay account. saves on fees. This can card You by processing credit

pay time. over can You

policies. cancellation flexible more have We

now stay check-in. month up X So you before to can long-term a cancel

for and stays. on upgrades stays, weekly well We and we discounting for have tools new many monthly hosts other stays monthly have as

to I we're a So lot growth. going think see more

to that that I Airbnb no long is we're going the exclusively stay. hosting on nightly will basis think, list a of one people host big see to People of term. starting to intention And more long-term opportunities, come to have

and used tenant go comfortable we get they might to to stays monthly. hosting a able think be having going thing gateway nightly they're more over them stays. a a believe but we a time, basis. might rent be Airbnb be There happen could is are to on Another host a short-term on might to we to basis, uncomfortable long-term is to And that short-term

equilibrium, this but really I still opportunity So I is to major normalization is believe do opportunity is this big come. think we the years But a us. there growth some in post-pandemic for think for a

Operator

Lee Horowitz at We'll next Bank. Deutsche move to

Lee Horowitz

XX has your the help us strikes of your given environment for change are circling your seat, than of numbers what understand grown some expectations last year has of may us environment. next over coming the a competitive months? maybe how more the back large OTA and incrementally the competitive out couple competition it competitors, Brian, evolve seen last you And the you've if industry in years? so. the to Can from It or over in the

balancing are beyond a do stresses said this And talk year, think assuming then, about about international investments progress can you rates how margins coming investments moving with Dave, margins can mind, in you years? how think aren't and next nicely that years guess couple this priorities? forward, I over grow you to about headwind given investment it the the in how of your

Brian Chesky

right. All first one, the I'll Lee, with start Yes. environment. competitive

it's important pandemic. the little industry size. I to is double most more the were of And note bit a is travel only they Airbnb think larger than that than the before

mix been share a major towards shift there's Airbnb. So

going specifically recover, on I to some homes on we're more see than Hosting. to going Mainstream cross-border. we to continue and starting areas. innovating. We're our going think of the continue think we're think adding urban we're to the But we're really I And of ways company. other We're be playing old of focused supply traveling a on few to that ultimately, focused any game, own and focus

our going focused be service. perfecting on we're to core Next,

think new historically whole and could consistency. the a there's tipping to The using road cohort of potentially to I be obstacle down people been where point, Airbnb reliability comfortable Airbnb. biggest has

have said, I only be Airbnb. have biggest with with strength able new products the as the perfect customer of many and just to biggest with services doesn't kind. of is a service to we And is being travelers supplement include The to weakness augment of to and As But hotel. as AI, this have our and a core again, opportunities I it's we hard many whole of we consistent we're the category travelers, service, and introduce are think initiatives a new we on can Airbnb. markets with new younger even that other one

a one going lot the just And only lot Airbnb would And is a of exclusive something many only generally to just if can come traffic. then of Rooms of we're to in and sense, big a of to focus that just going do. on only examples demand, to have offers. Airbnb also things you're is we one the things I can say, Airbnb principles do, have focus on that I the guiding Airbnb of Airbnb

focus to only but we're Dave? be so going And we're to that we things continue going offer. on to competitive, also

David Stephenson

Yes.

I think flow of free proud of margins. I profitably I'm one and grow of to mean proud kind very definitely something for the really margin ability having I'm a and of. things have is us is cash XX% the strong very both grow

good mode, we to still for I this across to and growth improvements in news able think remember of in growth as that and in rigorous behind I'm structure, make that is we're The leverage doing investing going continue forward, we're just future. the growth going are invest that to heavily very our all cost to cost continue while buying our investments future. P&L, kind for for the do fixed our be year,

right to going to I that time, we'll to business profitable not have but continue growth. a we'll that focused what expand primary forward that's should over opportunities anticipate focus on have think So my continue And margins, now. you is

areas increase to significantly is call highlighted mentioned, for the primary as today. those those we and investment seeing of And investing underpenetrated areas where will in we're of great be Our couple success. growth. in a opportunities focus on our one And areas for you

Operator

this I closing over for would back turn that Chesky conclude to remarks. Brian session. time, to the today's And question-and-answer At does conference like

Brian Chesky

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

Just start adjusted we really both XX-month of was and QX, proud flow we cash a flow XXXX. the and to made. and recap, progress free to year for our Revenue income a records I'm that margin $X.X had were XX%. XX% free cash strong is EBITDA billion represents higher was of a than trailing ago. billion, $X.X which Net

If doing, features really continue execution, that proud over the speaking than our last discipline a to and of and ahead for profitable what innovate at think just our and the better, with getting this we product I'm you look I'm many road the XX year. more ahead. I keeps we're more upgrades X excited company's last and years, later based and And on much week more of how has become, our lot been of execution.

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

Operator

does thank today's Again, you conference. that And your conclude for participation.

You disconnect. now may

Airbnb (ABNB) 9 May 232023 Q1 Earnings call transcript