Earnings call transcript Q2 2023

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Operator

Good afternoon, and thank you for joining Airbnb's earnings conference call for the Second 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 Second 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 second 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

cash QX over $X.X booked. nights strong net up for foreign was of exclude free margin XX% our quarter income afternoon, experiences billion for All million, year-over-year. you with of to for a representing year-over-year. our joining another the Net right. XX% Thanks when Revenue ever. grew today. $XXX quarter increased everyone. you. our excited Good And XX%, million, income flow had second quarter share was and XXX XX% And We Ellie. I'm results Airbnb. million $XXX highest Thank you was And revenue year-over-year. exchange,

trailing billion. basis, free a on $X.X our fact, flow was cash In XX-month

And strong billion flow is balance the cash cash free impact our this able $X.X months, last of repurchase stock of dilution. the of and our because XX sheet, in more than represented a XX%. we to trailing of And were XX-month flow margin offset shared which

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

bookers Airbnb remained booked in demand had and increased to Nights compared we region, year ago. every compared guest experiences a first-time QX more First, Active XX% to and grew strong. a year in in ago. bookers

more In than fact, X.X now starting arrivals had guest billion Airbnb. since we've

traveling are recovery guests by Second, farther. to time increased inbound And international Cross-border Asia are encouraged we Pacific, continued to to saw we And cross-border nights year. last XX% in also XX% year ago. America booked compared of this where especially booked year-over-year. travel North increased nights XX% QX compared a the increase

remain quarter, month the these we're this seeing bookings. stays bookings XX% guests trend nights an and throughout we live of remain finally, flexible people acceleration where longer and we reflected work, they in And on are QX, growth In Airbnb. And third of staying see booked. saw our in days. Millions in about total for year-over-year is the long-term that

extra an their typical Now, work extending important travel stays or while has stay also weekend are and remotely night growth, the ability been an of to people two. part long-term by

stays six type long long quarters, been in trip weekend fastest have stays, fact, the growing Airbnb. past In on the

post-pandemic. I incremental flexibility is people just have of think evidence the this

strategic XXXX, want we priorities. through we're that to quick very provide given our Now, I halfway across made update progress on a three just the

to been of at stagnated to we've Since awareness focused a hosting making recruit XX% hosts. new mainstream. COVID, supply started, growth we beginning strategy growth easier QX. is more our XX% it we First, With up tools on are making and year-over-year, strategy on from QX, then, In focused improving this around supply actually hosts. in and our raising the is hosting, for developed working. And get

every an we've And all seen acceleration across gone in active market we've see types, listings regions, supply growth. since total quarter fact, in to strong all all public, we're In points. price growth and continuing

In we million X fact, added quarter a record new and listings. the more listings QX, we active than number in of total ended with

obsessing We upgrades Xrd, over of on how people we our part given want summer our Millions Airbnb. listened. and perfecting of On new that and over XX improve we're people May introduced XXXX core release. to to as features have service. us every Second, love feedback service, detail. means We've our

new many us features addressing told at pricing are these tools our Hosts difficult affordability, use. upgrades new of with starting hosts. for that aimed to pricing and Now tools were

our we also hosts They us promotions. add redesigned we tools, So it told easier and prices. they for and made discounts had trouble competitive to setting that

so similar area their know to to see them called listings we listings So feature charge. a help added they what new in

we lowering and discounts. have guests. changes and weekly prices, received impact. and value affordability And more tools, as some feedback hosts hosts, we the to able drive greater started their having Hosts positive them be Now of from our an monthly for believe already we'll very adopt and offering these are are

affordable in monthly out Airbnb. We are stays. longer more Guests staying also rolled

to jumped discounts. made for percentage account, easier from to by than We it stays And So listings we money our bank for make of took a affordable. their the we started save monthly guests hosts more as to stays longer significantly XX% to months. We monthly new fees paying active U.S. the result, three offer XX%. to with and offer reduced option longer steps offering discount

another of to step room. rooms. to only us Airbnb average our and have rooms lower with average to ethos price Airbnb affordability it's of night, launch of Airbnb significantly $XX took takes address travel. sharing, the back the we ways the affordable Now is founding most an per rooms hotel than one

important many generation for is to sensitivity the price category guests, especially remain Airbnb. this travelers, increased of the for Given next an going

new ever, priority core. today, strategic service. perfecting third beyond expand years big but ideas the there stronger upgrades. the foundational take And next. our for and new we to and of hundreds rolled features to services core and than finally, spent building Airbnb some not to is core capability where profitable years past the come. We out we product the for stopping these launch few we're we're have in And more And is We've because our our that plan to

turn of to a I for makes that listings. I tell to one kind a recent is you what want before known Now, unique. Airbnb highlights about campaign Q&A, Airbnb

came you in we And As Mattel and Malibu Warner I'm movie out partnered celebration the sure premiere, with to of into transform theaters. know, home the in Barbie just Dreamhouse. the Barbie Brothers a

on since Only our our Airbnb Dreamhouse that they'll as way that world. Only in effective part playbook impressions it we listing than as a an give and The more was saw pop caps moments, And on is, inventory were press be Malibu most an more you Airbnb of than iconic and some and press sensation, our We of on going homes much sense XX,XXX of as launched introduce forward. Barbie is culture in to the how most our guests, generated a hits campaign. the ever. Only guests media inspiring and has social hits the to popular global part twice, IPO. of twice XXX is it with Airbnb's been now Airbnb important from campaigns many unique it Airbnb to And are announced. new million

that So for to QX. share results those have are we the

forward to I and look with answering Dave And that, question. your

Operator

Thank you. first Instructions] Barclays. question our at [Operator go Mario We'll Lu to from

Mario Lu

question. taking for Thanks Great.

first is on ADR the guide. third one So quarter the

quarter. listing said upward You up listing ADRs? that's explain you pressure it's mean of Can the what in by help shift kind mix type the you

Brian Chesky

listing just listings, shift home type right of types in simply that's mix of the the size type is Yes, mix location, either geographic of the of mix.

up that. to quarter due the it's third up exchange. And foreign in coming coming ADRs so also by driven being And

Mario Lu

down? Okay, take third terms this flat? over Does And especially to provide mentioned number Or that the rate, the you're to guys got come are rate offering going that there should the then a expect stays take you're it. to you your keep of kind after operational take mean, time, offsets Thanks. month. we of section lower for that rate, on in operational

Brian Chesky

take some other do we come expect rates to being said, not or be areas to There our I change opportunity saw after but where geographies offset up. where huge want that very could trip sure for types could materially. some make to results. down, take we're drive value providing that's is that could this the answer Mario. we best the conversion always a can rates identified we month. it be that. or would by down We segments may And really our want great Yes, by take that incremental That guests. We taking third I

is stable. it for I And And launching we're to the way margin over pretty so expect that generally, hosts expansion incremental guests going by years. the and coming would services be to see

Mario Lu

you. Thank Great.

Operator

We'll move Kelly to Jed at Oppenheimer. next

Jed Kelly

my great. Thanks taking great, for question. Hey,

you like think Just units adding half? unit into inventory us back about give are areas? urban can the your following update rental how Thank just it the and the you. that call an up vacation like on urban pipe, some of vacation should you more single then listing versus still And of we marketing on and smaller

Brian Chesky

I'll to Jed, start Dave. can Hey, Yes. and I hand over

been just supply strong. me really, let actually our mean, I supply, our So back up, really has

were, we on. as results might called flagged hosting. You work a to the why And that been we something mainstreaming this created That's remember COVID, need we very an successful. initiative being we have

growth Urban urban XX% is growing And vacation. supply is faster whereas growing fact, is actually growing fact, in year-over-year. growing XX%. In in XX% is vacation

individual So XX% I'll far of of that around as hosts we over as professional Dave. to stable. individuals. our what pretty remain number describe versus hosts, is hand as the And hosts

David Stephenson

a did the on revenue year. on results. half remain pleased to year-over-year I second the our XXXX. mean, marketing relative more forward been flat half with as to total year the expenses really first basis marketing XXXX over we a to pull We've this marketing relatively from of percentage the half, the of We back expect Yes, year

or traffic XX% So I remains mean, that unpaid. of remember our direct

we an for other awareness others. the house drive important events kind And then big, we're when that's to And strategy able of Barbie uniqueness marketing. a about Airbnb our things more our do like is about think like offerings. and dream of this differentiator I the powerful versus that,

Brian Chesky

a add year just it's one about articles written last approach. marketing about us. just, we I'll got is thing XXX,XXX funnel maybe full Yes, And

And media, on about So social of every people talk means media just now or just a you're generally social also is seeing what only I Airbnb. conversation. is whether the Barbie it's think lot a topic program

it's a and brand. you verb, you time a unique, going noun of lot because I to just brand, that marketing have get and over pretty when your expenses a of and to think of consistent have to is And the think a consistent when revenue we'll be send invest testament strength the those brand's benefits. something I a in you a

Jed Kelly

you. Thank

Operator

to go at We'll Douglas next JP Anmuth Morgan.

Douglas Anmuth

for Thanks [indiscernible].. is taking the this I question, Hey, have but two.

just platform the the the on are that where one high does other and full actually are the you to capturing? it first seeing case opportunity seeing that is people okay this on raise an walking And like away right you your you your the are see prices Or platform So higher feel it second prices outside side the to guys that's affordability. coming through for do thing that that aren't now? the Are year, consumers point? and with

Brian Chesky

think. more don't we're I don't, one able say hear you the not I Can question. time? to second

Douglas Anmuth

sorry, give on you upside for you the it? year EBITDA see Yes, adjusted to did to raise confidence full where your guidance

Brian Chesky

And take incredible we the Airbnb as have, for people they that as alternative our the have being pre-pandemic. and that remember prices in always the hotels. obviously spend growth On the over hotels. much in Yes, nearly Dave. risen world affordable size said, have to pre-pandemic long an on was been spend first $XX that Airbnb, about in That question on to started every as to many dollar run, think I as hand I'll I'll the the is business so affordability, has and since twice

So a as lot continue big is our very used from got one a And that a community affordable to small player in of be. I to think that very large we're wasn't still make the sure as be market. to year, it feedback of Last affordable. Airbnb opportunities we we

People, in a these made changes. What I'll highlighted prices my seen on bunch then, are we than question. prices. So average, on remarks. we've since your lower of opening of though, some book We the answer the listed Airbnb,

the called most why people a was feature booked. listings listings, similar very times Airbnb. popular money offered us that see And many the do affordable that we gravitating listings So hosts which listed most help more made towards value. we're stays the the what see think It's in we launched partly best discovered I getting

for this And are also year. in essentially so in to want out our prices guests I house a thing, which tools. trying a win-win better the to flat was, sense, one by is by year just point build really

I think X% now they're our America, year-over-year, in but are down X%. about up North prices

as down. take, it that some hotels mixed you seems are as larger shifts, are you X%. much homes, which our because you are hotels, prices to it North of are in to And down the aren't or like take upon public suggesting, out remarks, up based Now, some booking between when XX%. X% actually going come And data people they if hotels compare depending America on

fact, those come prices up. In might

of question, we come and people very lot I demand on a going at your the keep think focus one there's kindspaces And prices to answer to then come. can affordable, be reliability, to I great of think for value. Airbnb So also if to

David Stephenson

just time. of And made then of year. reduce unpaid, COVID terms our the back some major that it talked progress our that improving going our in this profitability, to hard we're of costs, I'm margins our core, expenses the midst we over do our of direct our shifts leverage lot And We us focus get where to to our for a fixed really The of and things XX% of profitability. profitability. traffic of continue on gives continued to marketing overall proud just like increasing overall overall remains choices in or about,

community We things continue or overall etc. costs, to variable our support infrastructure like make great improvements in support, costs, costs, operations and

And doing cost then fixed an growth. of been we've excellent with being job judicious our just very

modestly, enabling the us our overall. and XXX over hosts. moderated for to growing that investing matter several deliver the I guest more even actually call, focus behind last things So on to as our center and think that had like, we've improvements And in We're Brian about talked headcount growth innovations, most we're is the we've years. Airbnb

focusing going our costs we're to fixed manage to continue that the matter. so things on And closely,

to the half be exceed the for to over year, margins confident of So prior feel able back the our we year. going we're EBITDA

Brian Chesky

we that grow as think I'll we faster. we add that that, I get And more just efficient, I think found actually

great lean being for incredibly So incredibly I focused, think disciplined, incredibly growth. has actually been

Douglas Anmuth

Okay, thank you.

Operator

question next Suisse. from Stephen comes Crédit our Ju at And

Stephen Ju

you. thank Okay,

but the So Expand commentary Brian, shareholder there letter really us the teasing isn't itself. a bit beyond little is with the about Beyond there statement the much Core,

please the to might in might the these but or be directions experiences, be updates services any there, could may what about and be you some that in So either doing you what new host of addition and share for consumer. terms be Thanks. products of thinking

Brian Chesky

today want thanks about do my I going this Steven, back to whole space. What Hey, It's and the me just recap start of up. to for just are I how we one next? question. favorite questions. think Let

for drive but We think value. Airbnb. one to are markets kind. continue make the reliable to size And just one Core, sure many about and Core, thing more the mean, Before And even They're hotel in can talk as Expand is focus a could I I almost of than Airbnb. make often value, that we stays the Airbnb about big anyone spaces is to say the of that the hotel that need hotels. in want Airbnb which better we Beyond an about consider is in think reliability. nearly next I staying a times XX industry the that we I

I generation of up new you're to travelers Airbnb. a whole to open going think

runway lot just more a there's business. think core the in I So

so surface, only on perfecting that's we're partly our the core. are why scratching think and I we focused

Now, most beyond that, adjacencies next, let's nearest the talk out about international. what's from starting

in has One Airbnb top world. around scale most got a the of under-penetrated actually, Europe, and markets in United the of a in of, lot things we've in seen got Airbnb the countries scale but of is that we've States, we've lot lot is a

lack you we we Brazil. pandemic, XX% penetration more example, than the were of the larger. in Just about nascent ago, beginning a is were also pretty of more Germany. double the Since a had years ago, Brazil an concerned the years and than to in couple give size, Germany is few We

And be on now world Germany the of in is countries Airbnb. largest to on one track the

So It's opportunity for we're a But going going to a is to to Japan frontier. take we're that growth. and and Asia, starting playbook, we're Pacific with bring Korea. it Asia huge and

is out just is, top a in Europe where many of beyond lot of really beyond some countries actually markets, we're including markets, penetrated. the point UK, other should that Latin I that Europe the of I think beyond thing America. within one not there's France, And

So expansion. international of there's a lot

longer Next would be stays.

only pandemic, XX% the our Before stays. was for monthly of business

and Now think it's stable, going down. we don't and XX%, it's it's

think In is opportunity. a this huge fact, I

is all to believe stay. here stay think believe I you Zoom to flexibility have to to is is here

believe summer, see travel nominally you new is that, winter, going extend people for going people living or If or traveling a either category housing. the away weekends, and whole some lot for more you're a to which between the to

So one I think underrated that the markets is Airbnb. probably in of most

reviews And thought to instead core that going before breakout people experiences. end homes, thing You a But that is five-star a experiences. the and review. have we XX%. love the our put on we've had them business for learned I experiences hold. pandemic, for experiences have to are in it's XX% were left of

experience on even means more than that basis like that homes. So a people statistical

think ready that scale. product is And so we – to is being

spending of lot time. a been I've so And

me let saying foreshadow to years And we tune don't this preface some add May to I going and like you of just I'll to hosts. to a there's And come. get things. got in to couple usually the you're think lot I more service growth I do opportunities which November. our a see and releases, things every new But guests on them. into we before launch by

Eats, of which offer or all a sub-scale. hotel or get I there's of I at guest think services placement, Alibaba, is they've in Etsy, scale. But in the many shown whether know we've a well I you Amazon, at critical that many think resort. lot for services think that, the then for entire hosts. as there's lot on suite And paid markets, or it's hosts. because maybe about services, you afford can questions an other of absolutely couldn't offer all get about could a then a a in got of that to hotel they're services And services But Airbnb, the table.

these do just we call are So ideas. near-term I some the even have would big it of – some pretty But opportunities. just

I once-in-a-generation And in far think like do to what opportunity new that like AI innovation. is to bigger a shift the of for new business huge as and a edge is the probably Internet I the leading really businesses basically more shift, something probably opportunities. us it than as to it think akin platform for mobile, can be

So say doing. lot a about very, strength strong is excited progress CEO of expanding years, the And we I'm last that will profitable. very core. about made as three being business, we're my the it. really I that's what beyond just But building a

sweet we're entering come. years spot going So is to I the where our in coming to this think be

Stephen Ju

you. Thank

Operator

We'll move Bernard McTernan Company. Needham next to & at

Bernard McTernan

full trend pricing, seeing how expect of throughout in affordability. trends impact to XX%, anything the could the the the April Thank that just or focused is tools then quarter discuss quarters? that should if up was pricing saw XQ, June driving for booking you coming that start performance plus throughout mentioned you And on questions. – the where new throughout on the to Are better XX%, that just we we you quarter. just Great. that going taking Maybe you

Brian Chesky

we're specifically What the saw that Europe, North remember both where compressed Let pressure year-over-year, was if is me That we we in was actually And booking increased QX were more in on we is shared booking XXXX the start America. trends. that year-over-year with comparison delayed global XX% acceleration. QX. that driven in by QX what from moderated to the the interestingly, the you trends XX% hard seeing – a in what saw through primary acceleration in to quarter, And growth in we bookings saw April June. which letter, into reason QX total which why there on [growth bookings book] from

telling the we're American And North of strength continuing And and to from about growth which we're is of the I acceleration strength lead that just so into why was think into that consumer. see QX, QX further Knight's QX. resiliency forecasting

of the APAC. as growth XX We're Asia growth Pacific, was pricing really impacts tools. in nicely. pre-COVID, seeing and it in pleased America. have twice of positive the think with great terms our then And It's that And from we really I'm a in the that growth it's percent I growing size out over letter, in we in tools, called seen our pricing Latin number

all North . actually full being As of seen we talked think X% it's ADR down in of about the mixed, excluding the America, we've actually down earlier, when X impact of I those. impact year-over-year percent don't

great I should the prices we're make for tools that improve then other transparent make down, continue the platforms are know is. And either charge they the that's to continue are our we're what to moderating And prices think to our make face value, providing competitive sure going that and better of while so increasing what in I more it they even think for that actually because coming a hosts. competing pricing rate to rates. we'll or

value think shows on to I the so And continues grow, Airbnb of which just benefit gap booking the expanding.

Bernard McTernan

Great. Dave. Thanks,

Operator

Jacob TD to Cowen. [indiscernible] at next go We'll

Unidentified Analyst

forward you're was to there. a wondering was question. you of expansion in this letting details Kevin. on getting already you call so seeing for out that could taking could rolled could comment platform. bit do the include Brazil. on bid lot you Thanks. which I a you discussed take that been We've write had on could if if a results any Jacob increase potential this far. Also, grade, maybe my in that for wondering from of and questions advertisers Hi, tools is in Airbnb investors any Germany moving initiatives Thanks I

David Stephenson

I'll Yes, start.

me take to was a So it's be you do one of I've focused, perishable at learned, to you have from on opportunities He the have to have who somebody Bezos things with increasing of things leader to one said is Amazon. this, the told and regards rate, Jeff business focus actually something the Dave as that you first. most

so when that getting initial perishable was cost where and we're And the really get rationalize we I then disciplined focused share. a travel base. And think opportunity saw still And most to Airbnb our focused and recovery, that's about think market it I on. was

the platform it's advertising common I So, absolutely is the calls. get earnings a a asked Certainly, on request. table. on is common thing It on

good we Airbnb why continue just think do it. a It's not prioritized as the one to as much possible to is we It at most scale really We're haven't very perishable I could grow. of getting job prioritizing it. opportunities. and

is the on So, but table. it absolutely

offerings hosts. there us an for differentiated build little dive a in opportunity for such is just deeper, bit services, to to and this tools, And

Probably for. You They it, of the as don't we half happened innovation. last nothing most of over rate. think upgrades improvements. for charge hundreds about years, referenced, And our almost we of these have XXX hosts, with to those literally in made, do Dave over take around few

our of air hosts make before for we're to million it I more $X protection. cover, don't whatever value these, want providing opportunities. Our take was while like even which we're with bottom competitors free That though, what protection top for hosts sure we think was it. to of charging, is is offer there's all rate always our do a and to lot damage

I that a that Obviously marketplace. of them services can hosts lot creating call a think don't a matching is the with And time host that an have there's one, host but co-host platform advertising that business we on don't really host side. have But really other is interesting. to a people who a homes need, matching home, more lot plethora marketplace more, co-hosts, so with

well. also as the there's again, plethora on guest services side a And of

Dave the concentrating think about not I most I for experience a and can in are, say those, the With that better, I'll be just the We're would we it make regards would So do, before are company But say talk world, in Brazil, have to we perishable. things second. I concentrating not I more travel international that, Europe. Germany America. North just

world. good Germany and We're to truly I these every playbook markets. we Airbnb. everywhere. really region truly into in playbook really leverage country we I global And the have network. focus just almost And will for do a local how think interesting expand a It's but think and social We're PR, in like Brazil brand, celebrities was We a on media. promotions also on often that didn't with focus we where travel

these there's have localizing this travel so people is, we and to. a, product corridors product And really sure and addition to a and making that good key in our we have will supply in the

Germany than into don't it Brazil to the pandemic. stories. anything Germany than XX% want like XXX% is and are you And if I more think larger know good else? Dave, was is Brazil go believe I I before larger.

Brian Chesky

sure can payment often just markets the And narrow but of and see engine is we of engine markets we too approach that's search just key. very that marketing, very things. celebrity methods I'll elements, I but in we search Usually localized I make marketing. have the product. reinforce need these and Making the where areas all full start sure brand think sure some we you hit social, the need in localized. product be globally, the it. with then couple Well, is funnel being step XXs we're one well to often We to mean, a the are consistent that make of this NPR, funnel that full and effect.

are get on like that have we and and for then potential when to in Korea. for for individual on think think we're I And to are even And hosts things and our those seeing that because go back funnel the South important that Brazil the Germany. have individuals Asia the to initiatives full we it's to we're expanding That's the that of why you you remember need build results the approach, that I Japan majority that I'll both hosts loan to double click fact

to So that can think hosts individuals adding to have of we the it's important And out for example, benefit like we add don't advertising, balance. professional disproportionately that just over marketplace be something mindful that I really the take We're that's balance of we of the and it's what's host on more ecosystem, they're glad backs unique about support hosts. there. the individual that that but Airbnb. do they're of even our built part We're important different not We're because professional and community. glad

Unidentified Analyst

you. thank Great,

Operator

Morgan to next at Brian Nowak go Stanley. We'll

Brian Nowak

that my taking out. go it's better, so I size get XQ, question next question drivers detail give ADRs for sort the more just understand trying structure? comp about you location, to the are to of What understand a us geographic being the durability geographic We're but that little about? just growth could Dave, to third earlier quarter year. you're can we in talking about and to ADR of back the in Thanks just think how sizes into is of that up the on growth

David Stephenson

shift foreign and the QX what We're seeing we're think driven in near is of be here. year-over-year what term to and the geographic mix. it anticipating exchange for homes mix I included larger by Yes, we've up

you or America because our Latin growing could time, a growing ADRs percentage again, like our moderation, moderation some but point talking here over over there. think Asia we're we're and I travel, in cross-border nicely more talking things of nicely, we're time, see seeing of

it's of time, QX maybe to are much been we the year, up it going but longer flat-ish to more to moderately have into it's say last I term, so now, predicting don't over visibility be at decrease the each same thinks and beyond have throughout right which over that that. time, resilient could keep number be year to We better quarter, going few quarters, down ADRs amazingly

Operator

go We'll at question to James next from our Lee Mizuho.

James Lee

for can next consumer my pricing? out reacting as maybe there, thanks I you and America the taking do also life maybe between one elasticity about travelers changes? price by Great, decreased you're shift, about, to questions. unpack allowing terms you here, of maybe use understand from wondering those there, ADR, And out price guys you on dynamic. Two hosts can we Thanks. you obviously, in adjust secondly, can the the better one tools percent. see to talk What if alike North to the talk was so

Brian Chesky

lower the of measure a benefit Sure, good nights we from pricing our increased absolutely overall. elasticity and see pricing price driving we

affordability obviously, gone is declining. all minds average North important We of what America the the booking in Airbnb are have people's have people while calendar it world. actually prices definitely that up, available on the is are around booking increased, think, prices see I super specifically price in where

year, In for So specifically, what North we size, so that was down year X%. same down that was on like of the X% America it mix and have people just location, excluding value. was the but shows property great you average, saw to actually of desire means like, for type

our like in like a kind And actually hotel touting ADRs on is than more. basis or increases industry for North different seeing of So to of the America XX% that's very what down X%. six we're

widen. gap value continues the where in So to that's

James Lee

Dave. into FYXX. about here, maybe wondering contemplating expiration. question your loan more asking one was that's issue, student have A for Thanks. this I how think I you are lot forgiveness, guidance about of anything Okay, investors

David Stephenson

Yes. loan I on don't on a the view student impact have of and specific guidance. point forgiveness

prioritizing to think to a the of travel which is nights, people I why going And face people economic great we're that even what for and seeing is value overall strong and gives just relative is of we're whether alternatives, just us quarter-over-quarter or drag willing in our travel the in shoe to to over doing and get providing seeing of that the things. either greater not economy keep tailwind having are we're drop that value a total by have And other it's we're down moderating or and work make gain the to, on that prices whether seeing. come both accommodation I what travel the estimates, share to we're concerned all on our sure people results. all continuing resilience about think not year-over-year. waiting We're are

James Lee

Okay, great, thank you.

Operator

next Fargo at to Wells go Securities. We'll [indiscernible]

Unidentified Analyst

ADR do you. tools you seeing know if Dave's and you your North medium there. the comments about, equilibrium and marketplace the is, how affordability? was could ADRs you've impact some maybe how that right helpful term balance like Hi, drive you've Thank see I the flattish you know want in for the X% of you that to comments America, ADRs you're issue. some introduced of that where to over on but to of come And when the like and in continue to I will follow-up is And back thank talk place? square reached in kind want you. I the the with to overall kind it kind detail Brian, very

Brian Chesky

yes, start. Again, I'll

like taken relative today up, So account everything approaching to that X% this year for know, rest hearing, like next think prices they to example, they the I I higher for is expensive at presume a I've the the X% We be some world higher. continue inflation are into that be are affordability up. double I ago. And even was digits and North hotels or been it than prices Obviously America in of And recent think while estimates our for case on the our least will market. go to be year comments more to down in price in based time. is have expect most might

do do not then So if continue Airbnb marketplace. host? even where is, the become in remain are the go up to affordable question, to and up the hotels and which a still Airbnb for than to world how balance audience guest rise, But continues much right brings Airbnb. good more It's prices or live a hotels, which that we different relative prices stable larger flat to and you

just aren't no suppliers these with. hosts, we relationship have we so have And

a make very drive earn. for find possible. them balance can any between still is making low for host not a to have the really So to prices income goal still prices valuable down income our affordability guests sure best it's The to as while and as meaningful

Most you hosts most hosts month. A are point, most like booked not you your the XX Now, you lower hotels some that like a we've can hotels. there's XX a is nights. a that nights booked hosts of low XX, prices hotel because to occupancy. is at Maybe a one days business things sensitivities month. look show can more are when booked lot very seen we of not actually get have will They're usually

supply is a bit. deal our that for it while. perfectly just so of There's make that so and lower able to And between a is and longer is more think be to balance sauces. that more point And little guests that it's They one though they of us secret more big lower will the demand they'll I nights sides both it's that that they that add sauce worth bookings, the no to where and money. secret them. much sure price balance for their the working And end equilibrium, making kind up hosts,

James Lee

you. Thank

Operator

next to And at move Sandler. we'll Tom Champion Piper

Tom Champion

of time? And guess kind going around good tools some curious now. built long-term then for think afternoon. do And rate, or couple that for Where to what quarters just which like see I last Looks hovered over ultimately rate the you've you a nights to the you. will that Hi, stimulate Dave, you offer stays. the XX% room question do to I'm is

quarter long-term business of updated that. you for you've What margins. Thank over you. potential strong Just the Another do margin see EBITDA time? the if curious very

Brian Chesky

Hey Tom, the one. I'll take first

are of by stays before month mentioned around pandemic. XX% XX% Long-term longer. before, nights And they book. were obviously our stays defined long-term I a or So as the

will now. hard predict two, three, in four next very to the change from it's one, how Now, exactly quarters it

I a decade, or QX I'm the a it's be of make QX. XX%. about in what But prediction think XX% lot going can going than higher So next I amount fair might be is in where say to confidence a to next not with

can't reason And ever day, and laptop via but exist stays. a in school of that history, you've more have the in human did people about time are incremental years that and because school got do not families than is or towards wins Think hundreds don't overall the actually perhaps that kids think a than family Then of that move any can more billion their of flexibility I why in have that of laptop a XX people longer around. and the one people that ago. millions from and has people aren't that, longer job summer. young you work are that have a have in kids XX number the in some

and more people going go still to see summer. away you're So more from the

come headquarters, back, away going are extended thinking moving People away winter. give work Many about the a for people are periods. from they for might but

a as to is longer. real between. but our future. XXX year. And are is a or nights to not stays flexibility to think in So really estate. of And be that housing, a a it's I it a to one booked housing that going leases there's lot There's category be think there's be happen classic doesn't XX year is not in I the this we in around is category going think basic I thing and mean, going have more even name, going days travel million

a a of they're exist longer, really world that new Airbnb. in to they're you player that going ahead is book business the on do meaningful place Airbnb we there time, to and didn't wants if anyone to a And leading can to and And major the a is stay I think tour visit category book book month going a that this. So in do can't really so started or of to actually place do. a going be when way global scene, they isn't with of site another

to basis host that to So stays would able the lots actually people And monthly get adoption. you. listings. want features be only of I of and a upgrades to term, long that think actually that on can't I'll will predict monthly new to also Airbnb, over come bullish. on a to hand unlock Dave, I more we this in area but have ultimately, short term, And very increase the we're lot

David Stephenson

focused margins the but rates growth. not I'm we and and things marketing really in focused Yes, substantial some That are kind thanks on margins. higher great change EBITDA it. costs in accelerated We've mode. the in the progress of proud leverage. I improvements really towards on drive profitable are made based our like we well we Also growth fact optimizing growth, approach, question, am on progress the for I'm remember cost variable helped have margins said, or proud fixed that that overall overall grow of our average of profitability. can daily our

opportunity the will that I I profitability time, of I'm fact think think some as Brian through mentioned services that guests that of expand we the much to we call, services, and to revenue margins extent proud I gain don't the the think our as have have long-term said, that biggest just I that higher over all of a add the the the revenue be been that we will of increase in host able with flow we've lovers as we'll deliver our to quickly can target. that overall to we But of profitability. new kind have. earlier

Tom Champion

Thank you both.

Brian Chesky

Thank you.

Operator

Mark Evercore Mahaney move at to we'll Next, ISI.

Mark Mahaney

you're or to it's but more the lean as to the ask lead and I efficiencies? improved wanted on cost it going of about both, and one you answer AI would you ask would to you to And likely wanted on or impact these it's I'm other, monetization I a this way it if Gen And which ask Dave, a want I of P&L is, applications, Thanks impact Okay, investments improved think financial question to one the more be? which sure to do AI. think time lot. over way,

David Stephenson

Yes, absolutely, is it Mark. Thanks both.

timing. I think it's

of term, so think kind technology, that much we we the opportunity. the product. which right huge such of actually the a future technologies prevention it's do matching we amount a driven, AI technologies, it use fair not in AI of is our actually lot AI, mean, our underlying on I remember I near Gen have, for now a party while Like

leverage more see we'll our think in cost space. I fixed

more to people work overall. needing do fewer So

to so both on think help that some variable going more our costs. and And costs I that's fixed

over more to service time. automate contacts So customer you'll us able see be

is think going but great term, a would may the variable for Gen things unlock near make the fixed with time, to And on leverage. future on it be think and better think I even our benefit you'll over and have see, more little it Brian approach that chime we're in AI, a our and more our guests take we I would be of huge cost there's be time. in I So hosts? service to there, how this do from our to the then one able

Brian Chesky

share just efficiency I'll in a Dave long I said, few Yes, mean, I short as term, growth the things. probably the term. obviously think, in

long term, is talk let me Dave to, on just one about customer service. the I click which referred the double Before part that term of near

of strength is Airbnb So one service, the customer a that we're of kind.

everyone a going We to that have really know don't is kind, of active Airbnb seven it's and listings, unique, get. million million special. and listings, seven one and is you more with But is than the what you're sometimes problem

be consider or service will they And hotels so then the if that something there's tipping stand only there I people Airbnb don't and fix issue, think a that think and if quickly that where would Airbnb. can we goes unexpected, I point then can reliability, consider increase many if customer continue to mediate

a so And more than a more service that hotel. are about staying there I arise this in before future, to color could give go customer the issues you to types many Airbnb of little

a nearly and when long. they host. pages call they're guest speak and Many guest these one potentially of a other the different usually all, aware be room. will you even every the XXX the they're that the property policies hotel, adjudicating. in language nearly of world. different host side, us, are on than XX Often We're could the you of are person host, First There will call country and every

things. guests read GPT-X, can human both it amend. all all customer and macro summarize be customer with two If to lot never What even more the to that tickets somebody it customer case hosts. agent the all policies. lot trying It a from we're using is and deal this recommend even agent to neighborhood different going imagine to from people history agents have case a AI heard term, will the tickets. on it's do, the issue issue, able the AI No your a in adopt based countries with then pilot service because And our in can can could an be and right, read that their get can read quickly quickly So and policies, many effective, two more of. a It ruling do can it's and service than can actually going a agent make to should what can may write actually policies. we service ever basically a handle those of

growth. to agent, more to be to reliable, You'll but more unlock an talk which never even will service the also have

Now, this but minute I've to just we What with this worth I offer leads it's and to the of question. a do last AI? shared of can course or wanted earnings, bigger And two repeating. thoughts,

so ask If why going Earth, question, it like it chat the the who and you to reason I question, were we're to and it I same ask and know go the doesn't you right to does And go really answer. mutable truth, you far's GPT is doesn't a to to go get mostly a were like a ChatGPT now, with it are, who and it know how am, the

I bring? go But these of in Where Who on answers who something whole areas for depends should questions I travel? is Where questions. one these stay? turns or to where are. life, travel that. I it that. Everyone What I there's the And bunch a out right should answer should conditional There's Moon, of should isn't you with? no everyone. like of

research the labs to these the bridges, large like going projects, going best language at not but class to bridges, Airbnb infrastructure like applications the develop interfaces. to And building building designing we're we're be on build think so And car. like top is Those are models. large of I in

you've years. I I seen the for And interface over think, that design, breakthrough last think AI. a we can few

not interface what image, the Chat. to want And to than is able not Chat, think it's think you text, do that typing I multimodal. you do want. because It's is it's and I interface, that's much can, video. interface to you the AI right be faster it's see

provide a we that not lot important interface. it's learn And you, think we So new I unanimous about personalization, more just really a customer. we there's that think of you're that a also, whole

can the more investing we're why places partly know that's service than really more experiences, and that, concierge account local you can want personalized every AI Airbnb over provide do almost in profiles, app personalization, knows all guest match and local we about more in travel about if any understanding customer the We And world. on And an company more the guests. their like we that much local homes, world. can be our to that to

well, And about Which internet? just adopted the product-led. I were is on innovative, way. adopted in think Which best think succeed was of the will companies this product-led, And are the very best company's think last want I the we company. company's that thing I'll the best most technology-led think always AI, design-led, It mobile? most that tech. a of be say And to AI the it we frontier companies new a much I

to things exciting the in years see So we're on think that. some you'll working And come. I

Mark Mahaney

Thank Thank David. you, you, Brian.

Operator

does that the for time, question session. And call this the conclude to over and At turn to I'd remarks. back answer Chesky Brian like closing

Brian Chesky

billion, QX and income billion. everyone. thank that's pre-cash right, a to $X.X just flow was trailing Well, year want All XX-month EBITDA us joining ago. Revenue I XX% higher recap. were than you was Net today. adjusted And both records. for $X.X our

a and made release. part XXXX November, started. we In represents Now, set to XX%. of proud getting cash winter this progress first in the of we're new the many accomplishing upgrades share year, margin of will I'm but as half in tremendous too. you of amount We've a ways a just features be free flow of our

forward look to I more quarter. with And you sharing next

Operator

call. for conference participation. today's you concludes this And your Thank

disconnect. now may You

Airbnb (ABNB) 4 Aug 232023 Q2 Earnings call transcript