Airbnb (ABNB) 1 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Ellie Mertz	executive
Brian Chesky	executive
Mark Stephen Mahaney	analyst
Eric Sheridan	analyst
Brian Nowak	analyst
David Stephenson	executive
Lee Horowitz	analyst
Douglas Anmuth	analyst
Jed Kelly	analyst
Nicholas Jones	analyst
Ronald Josey	analyst
Kevin Kopelman	analyst
Justin Post	analyst
James Lee	analyst
Lloyd Walmsley	analyst
Kenneth Gawrelski	analyst
Conor Cunningham	analyst

Call transcript

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Operator

Good afternoon, and thank you for joining Airbnb's earnings conference call for the third 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 Eli Mertz, VP of Finance. Please go ahead.

Ellie Mertz

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

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

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

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

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

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

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

pass to the like to call I'd that, Brian. With

Brian Chesky

QX joining. We results and year-over-year. Thanks quarter Eli, you, share everyone. XX% XXX was of grew Well, you. Nights billion had million Experiences over another to excited Airbnb. and Booked. strong $X.X for All right. for with I'm afternoon, Revenue thank good

$X.X was billion. income Net

highest billion, the flow Now net income XX%. allowance tax an adjusted this was $X.X benefit, $X.X ever $X.X net release a free valuation adjusted tax onetime benefit margin income even for of cash a quarter includes But and income our represented the was of from billion. of excluding this And billion.

XX-month balance a which trailing ever. and of on cash $XXX is strong million we flow highest our over cash our repurchased fact, stock. And flow In $X.X sheet, our because basis, also billion, of was our free

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

nearly First, active have we year. added X this million listings

at compared rate, new listings Our highest to and the supply the Urban supply We XX% and a the same again ago. Airbnb. with increased individual demand. regions QX growth saw once supply hosts in the saw across among relatively we year majority grew highest all nearly to regions in growth with of similar double-digit supply nonurban with professional exclusive growth

first-time growth to QX, same saw during booked app nights app the with Airbnb Airbnb. Second, of saw than the XX% year to on across in acceleration gross nights bookers QX ever more We a last period booked of the Experiences growth QX nights compared the in in XX% encouraged and and year. of was ago. season Nights by in a we record compared geographies, XX% all and grew Booked particularly travel an we are

year-over-year pre-pandemic Thailand basis. expansion international Pacific origin has markets Asia experiencing markets in and finally, in year significant Asia Pacific, Indonesia, In a growth momentum. increased as on book Cross-border XX% growth an all recovered nights compared our QX And XX% to are above fully gaining ago. to such seeing And Taiwan, nights business we're level.

X our able been strategic results making achieve these on continually we've progress priorities. to Now by

And hosts highest of the is active saw active with across growth strong types. working. focused regions We quarter mainstream. hosting benefiting. hosting we making our the we're number traveling as popular We've on are results as show that all First, making and listing, QX listings ended of been our and the market approach

improving During than Airbnb to host experience a hosting, more started raising making it QX and by growing easier overall awareness get around billion. alone, continue We'll the $XX supply earned for host.

on prices. and Second, tools this years service, are collected started our how customer twice and improve These ago, to upgrades things feedback to and we're off for then, And of features core product year since XXX launched millions a both paying more more to in across we guests Airbnb. we've alone, reflecting this pieces And X display of doing help host. service. the as releases included our year host new entire past new price improved service. And We've total of has set such competitive feedback. than address upgrades

For tool we now discounts easier redesigned offer and discount. almost X/X add monthly to or host hosts for our the And it example, and weekly made we promotions.

added similar hosts feature a to let similar-listings we listing feature. in nearly used see know the called launched prices so also listings We area, charge. since have the X million new that hosts this what And they tool,

fees, shared help prices and search cleaning we mid-September, we've reduce reliability. made to progress lower In and improved

have of aimed introduce X features We where at more as part dozens new next we'll improvements Airbnb of making even November Wednesday release our coming reliable. winter more

is our beyond their finally, priority expand And core. Airbnb strategic third

to made we significant new services expansion. international we've profitable laying offerings, been the And and years Now in on business. in a in progress building few and foundation past the strong focused addition for

seeing markets, We are great underpenetrated and we're investing results. international in

we've in Following XX% XXXX of on booked QX in were to they the gross XXXX with compared and in quarters one Germany become Brazil, Korea has growing than higher fastest nights recent origin basis. seen countries success, our now

Airbnb in As international markets. continues recover, to travel momentum we're greater building for underpenetrated

With those to results your I questions. forward So and QX. for answering that, look are Dave

Operator

from Evercore Mahaney We'll Instructions] Mark at question ISI. first our take [Operator

Mark Stephen Mahaney

And X I have questions.

to Brazil little improvements on optimized, you and these could optimizing Brazil And to that seen in any sellers, mean. those? markets add while when forward? and take you on see spend things like of Korea. time other Germany, update And going particularly the for some sellers those to like I for about then you've now we opportunity talked that listings of services keep terms host, is a that in monetize ones? offer more Or You expectation are a it you could Could sponsored secondly, just is Germany just future bit already this

Brian Chesky

this Mark, Brian. I'll it. is take Yes.

Let's about expansion. first talk international

it's So Airbnb recall is question. probably this And countries on everyone in a the aware, as XXX is great in region.

higher is one time, significantly So there's We're to same most could global have travel penetration amount if on we fraction hand, network. of what of the the than many penetration that truly one At we've like of huge growth think percentage our a States. travel. of we the countries. States we're we the global And United in of our get a Airbnb in United the in companies that penetration the all in even other is Mark, seen just a

regions. seen involve So the a to higher It's decided And the We what double and it four-pronged Brazil. year, was approach we've PR, and on and kind now this Brazil before. size was XX% product playbook Korea. last pre-pandemic. local than out it these updated roll playbook. we is Germany ground optimizations It's rolled marketing as just of is out same now in to that in optimization, rolled We out some it general

what Korea. do we Brazil I Germany, surface of would can we've in scratched what and But just say the is

larger, I around China, Japan a and now think on significantly Asia are those India, and could we're at good looking markets Pacific. trajectory. They be

continual Europe Mexico. lot Southeast countries growth a addition number some in growth. can of We Asia, have in in a number optimizations we think There's to in more we other a of areas where see

markets. and that. going one focused months, And see XX I dozen know, to opportunities, large going in think to about have the our There's penetration as really half our in we're around that's of the these next on lot markets tourism So world, expansion major dozen, biggest opportunities. acceleration near-term we're be of a a you a

to for services host doing new a we've With don't and of is sellers, And is building regards our these including that Co-hosting we've future host. have of service match so have anything service where time we to recently, don't right been we pilot But services, announce sponsor in into -- we out unlock we've space, can what foundation doing a they out pilots co-hosting. that tools rolling these we they to listings. think don't with been the a now. homeowners is States, and also that been systems popular have to been supply. the that rolled extra but United in parts more can homes, we've have We've but have And turning France. time we have lot to this a

to -- to over of you're think for couple going new out roll going see a we're the I of years, services So number host. next

Operator

Sheridan at Goldman Eric to next go We'll Sachs.

Eric Sheridan

apartment longer the expand quarter, potential map a term, just number could I consumers on evolution that for rentals. about about investing rentals, the product How long-term products you the one. and thinking you talked elements that's of the car platform, road about over have in those the initiatives? in platform think different of do Brian, maybe probably to interviews being behind even offered product

Brian Chesky

focused. get I doing we the I really think like get pandemic we've and margins to back, company now went years, felt really last really, breakeven to we few of by hunker focused, the around benefited company to of Eric, basically just down, flow When mean, revenue. cash obviously step XX% we really lean, being occurred, from a had a

on our benefited core from this benefited we've business. from really So really focus focusing and

now are ready to of for to was that. To Airbnb just to your more always housing I do short-term point, We're we its than re-expand It getting attention core. much do always think intended Eric, beyond more our travelers.

think, top are hosts actually could Airbnb making build I dozens we on the system. working Airbnb of guests we're of So there services, an platform. on quite ultimately, that extensible And literally more and of

extensible down offer lot can the to I so making it think of platform a we these services. comes

the about of couple ideas. day, we're think are end of at a the really thinking big I

product think reimagine generative are as our I category AI opportunity an we of product about and much thinking First, catalog. that to

different think match It never in you of generative you've types can you AI of powerful. and about really really, lot sell a be offerings, products new if before. how way can could you seen So a

an travel like unlock as So imagine this that opportunities the Airbnb agent never almost think we've being can We app. seen. ultimate

Additionally the there's the opportunities both guests lot a of on and to side. host that, side

lot And thinking be a this. through so we're of going to

the see in updates years. hopefully coming you'll some So

Operator

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

Brian Nowak

have I X.

of lot guide take the comments rate. a and know moving the little the I comments pieces on maybe one, there's and ADR revenue First the between bit. a

looking guide room rate Just in we be about that of single, sort things? high thinking the sort sort are confirm, take with XQ? to guys in growth way range the low double-digit wanted should to of and right you night of Is

that them you I give be And lot room have cetera. and X upgrades, features XXX one, night you have 'XX? accelerate 'XX Can impactful us we could a the you sort think Brian, then X growth into to that know or innovation, second of and of et just you, of go as you most

Brian Chesky

things And we've Brian, things already on referring shipped? haven't sorry, you we or are working that that we're shipped to

Brian Nowak

Well, to great. either Yes, way you you already want one have shipped that that would be if go.

week, you next If good about to you that us have ones would be want other tell too.

Brian Chesky

Yes.

why about me that talk about and so let next yes, the for how bit So I and of a you the about you So done. sense talk guide beyond. we're -- some don't Dave, of thinking things innovation already I let going can we've forward? can answer week give little me maybe

to we've for X stays. total X and things out improve over did guests just to of hosts And customers given I would were us based on display, It out May. So last that millions actually call the we and price would on call I be tools how Brian, host and things, monthly feedback, idea Airbnb pricing listened. have if was XX both upgrades just

let go X what So me just happened. and through

before is display, price total On display popular price out taxes. demand. total we on based rolled This

does We fee. app X now this listings have listings this. reduced kind removed only have have travel a or our we rolled are their of cleaning out, that cleaning XXX,XXX million actually now that We the fees. not Since do

this think we is So working.

steered being value total total think on also now towards of a inclusive overall cost people price, are basis. We better

see pricing Since monthly better our to to them listings has value. surprised usually have bookings competitive been And a Because the a you people tools. know we now of where find tools, new are charging called really your and other pricing sure out And are way we to host where listings, that make it's offering new best most listings similar tool rolled are second also have what The about always can new half around are discover hard this get around charge. you this we you. the prices. discount. home worth is And offer what host

And so the give best thing you can transparent people data. do is

the while these are X hotel probably I'd Well, time data, million have are to Airbnb prices in people XX%. point September only X%. prices and year-over-year up globally this is, thing up used tools

definitely direction. right are we in moving So the

Now in I in actually think. America, our North FX double digits, hotels America, while on down a X% is price in basis, towards mix are neutral North shift up

is by after are we So stays, the fees new stays. bank, say updates obviously for and stays pay months monthly on last bunch interface nearly thing a whole months, XX% or announced I'd monthly cool can really X have including you lowered of year-over-year. the we longer growing We now X

just So we've things are X those seen.

we we we've I to is listen think growth. learned adapt drive customers, quickly, like what we as can incremental

some next say next, big don't on we about what's talk before we around focused opportunities obviously, reliability. though, As will will much too pretty are far it I release. Wednesday, as

the I'll this. say is about thing So this last

is, If approximately bookings. are when come to with up get how people or And hotel you who stay The stays not they X is Airbnb, hotels order ask before you about that usually a every think to every Airbnb, and big know in hotel why they're in book do about reason for magnitude night they person what bigger. about the one a book. you going Airbnb number they reliability X people,

to a that speaks offers that other person kind the one of that weakness It valuability Airbnb it's one of wants. hand, hand, on and every strength one-of-a-kindness not the kind, of

make will big in pretty offerings we're week, next that think so to some I a have new And going this.

what that's say. can I So

course, well. on stuff already next I about of think you'll we're I'm what as pretty next releases And optimistic for working and next see May week. October

stay So tuned. hopefully,

David Stephenson

and fourth billion. guidance And quarter, revenue of between the $X.XX have our for then billion Brian, the terms in guidance, we $X.XX

growth, and exchange growth that's XX%. the XX%. excluding revenue of So between revenue remember impact in that foreign And about XX% QX, our is

So same fourth -- anticipating the level the quarter. of we're impact and not on FX

QX So broadly, and QX. between our revenue growth comparable is relatively

the variability quarter, that in here of early nights our being and so with terms we're guide. In cautious just guide, some nights the just seeing in demand we're

be specific on a below being points points but to growth not we're QX. so And a to few be -- it, few anticipate nights below nights

Operator

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

Lee Horowitz

As And expectations utilization or occupancy newer how are Can into tracking you beyond should come those may help you the we year? us or how about be you how extend about you guys track maybe markets, next utilization think do core guys or that towards markets guys thinking occupancy on moving think holistically, forward? occupancy about? with utilization headwinds

may single-digit low one you we've or their other And high remote be a of reaccelerate current seen like. how and one. you could than able better models, Can Sticking longer then us travel help and the and meaningful double-digit what teens to different maybe the to over bit of used just business we've think cadence back cycle, to maybe lot of there in revenue be sustain a market. ratios understand level from than that little that beyond sort hit a this of high prior step period growth that as time sort decelerate a rate a we're take perhaps seen maybe not Airbnb

Brian Chesky

second occupancy with start you Yes, I'll the question. and take Yes.

David Stephenson

goals. XXX% occupancy to amount listings. pretty that to want kind majority enough is their step if be in looking hosts our of what And mean, vast you are financial They're on hit stable actually global money on of basis. back, not remember houses. a earn I it In of some of do of occupancy, to certain to actually usually Airbnb we've individual drive the terms seen terms got all of you they

period, our way overall go over the inventory look grow to So been growth a as our is night. back our in to of levels like overall actually all we in current we're in growth relatively XX%, continue listings strong But XXXX, have kind see period. growth overall. if to occupancy our step you revenue Clearly, inventory, continuing to which ahead and X-year grew the actually we of the back at similar

an So any in fairly to have that occupancy a volatility. be can stable period, time it tends period over extended time little bit while short-term more

we what focus primary it a again, great a overall, because specific as we on by really on matters occupancy on don't that monitor in But local we have driver, listings local specific market is date. available a

Brian Chesky

we're for double-digit before, think we can said only -- think to the absolutely Lee, that growth I'll second get revenue I think question. to solid scratching years there's point X I surface I'd And your many, things out. And come. that company I how to take that really Yes, becomes. this I many as

The first is our core business.

significantly And core who in than sure two, could Airbnb alternative. every one, stays believe service business the anything hotel single a about of it and didn't our is benefits believe if Airbnb to our stay this think I they new. is I even the made do reason I we almost reliable in the larger person all be be today, following: that knew sufficiently was we is, number that an could number

benefits understand Airbnb type of don't certain hotels of and traveling of the or you're in people. that in trip X trips. with me staying we've for it called We've with benefits one new X. it". on And of recently noticed our marketing based those campaign Airbnb done hotel. versus basically is the more always that's of it when contrast of a let better And why the So And stay "Airbnb types better is one unique that the almost the Airbnb things some lot people a research, is start of is

having family do different can versus want at to a with We're you're home stay different place you group, only whole all room -- stay same the when then to in can lobbies you time. meet traveling in rooms And get why crowded If yourself. traveling with a you separated. these the or a to

we've -- is for marketing It's major the this ever be highest performing So year. new going is to the new campaigns. next -- a campaign this running digital basis these been digital campaign And we've done.

this service problem, keep get, that, sure to you before, when we know excellent going I customer ever on is mentioned a Additional front that making think as you're and just reliability, as an if book, be you then as as good could desk where what is focusing a desk you years have a to could nearly the good tipping that come people front in or point many as choose Airbnb. I there a to

So business. our that's just core

Next of States. only we little France. XXX bit, those penetration countries couple in at Canada, have that, there's though down. And really to tip Even a international. starts is countries we're even a of in it region, rivals Australia countries the United and are U.K. After where

opportunity we Spain, like even at to step just Europe these but like just Germany, basically a so not bringing Eastern U.K., massive and actually massive, of and have penetration. And by Italy change the other every Germany, Europe, and Northern but playbook countries. and entirety are Obviously, lower France Airbnb's there country

new us, Latin market a America emerging. is completely for

doing amounts growth we're We and argue say just what can new it's new I now, by on Asia I'd here's that disclosing say. a I mean services, we're just I new though then would Pacific, market. products yes, not playbook. right finally, would And of adding our expansion anything be completely huge

I I a CEO think good job. not have is profitability really we've a strength done though even driving the as biggest

sweet this new great think designers inventing be and think why is I many we've so literally hired going services. products spot for technologists, is to us. a That's I and it

a than putting huge opportunity and things can addressable we I going I short-term going not new November, about And think much obviously to May I a forward housing. again, increase twice market but think out But to before that that the Airbnb. is just more hope hopefully, ship really for for November We're do new short-term every still year, them, housing October, us. we're going -- every talk be ideas we

Operator

Anmuth Doug go to We'll next at our JPMorgan. question from

Douglas Anmuth

you up XQ. early in First, the volatility caught greater

if visibility how macro and any kind that's Just whether curious a kind of or XXXX now maybe then of any you ago? you geopolitical versus have visibility that sense and have and perhaps of into a view curious compares more of bookings driven year if

David Stephenson

the completely of to Yes. kind pin or of volatility. softness It's root cause hard any down

is QX, I just what's, it what I kind because any volatility is broadly, out of our there. little seeing macroeconomic we a softness in we're early. think, bit out call kind of driving just is It's that's the overall and to think geopolitical of relative that demand

am the I with really think for about XX% revenue remains stable fact clearly XX% promising. to I I confident And think that growth. growth our being that, QX QX, is

it's -- early is Our to visibility early again, tell. into XXXX too

about I overall and think of as I'm plans, feeling has Brian kind great mentioned. our playbook

to penetration I are think our in people greater for term. bullish overall, I the buying efforts so get in demand additional about very I'm excited Airbnbs, I'm long making like still most am prioritizing we're things the over solid seeing travel markets. And international

Operator

to Kelly Oppenheimer we'll go & Jed Company. Next, at

Jed Kelly

you Okay, essentially further where a on new show then regulations in give you talked to great. just Can property price. shareholder letter. their about letting update rentals update their announced managers they're the vacation Google the And us

changes talk of the you about is some can how seeing you're Google So making.

Brian Chesky

Jed, regulation. I'll take

over So by say, really generally been general the regulation. yes, last really, we've the would encouraged trajectory of I decade,

these Currently Seattle though or to legislation they France and regulations legislation. Here out national and are the near of country sharing passed us favorable found top to for already the that have Diego of passed has and And workable San workable. that XX% today, home really of had point very is couple very, us grow thrive. I'd regulations, cities on a books favorable continue like have We've like vary, our solutions stats. have XXX generally markets for

started can New York different when probably gone legislation New has Airbnb, contrast model we adopted we not cities in it and actually City, can New a that turns will adopted. to which has develop York we out York, completely other that's that in thought direction. And that that I York I New the unfortunately, make legislation have It case. we can make anywhere

and York a New New in studio different has are year-over-year. in gone it's York to seems up about York A already tale because cautionary even A seeing what fact, a price think lot to In turn of can't I there anymore. X% now afford to New going or we're be go direction, hotel $XXX. into one-bedroom a people

Jersey We lot. which not and are New of the seeing do bookings to York more activity work intention probably pass I more and in a And the anticipate City around City. perimeters people underground, will even probably is go the

So able line to with type city one-stop seeing the generally really be their the cities constructive. to and be self-serve, monitor shop speaking, we're be trend activity the happening ale for data of the We generally in get really, built to to city. portal

from us that on city wanting is make have out the And cities to to going to paid are have post-pandemic in we dollars to of generally, hotel reached sure or we're portal. and seeing We what city, era billion pandemic lot they benefit XXX $X in economic tax. that a the cities able

is XXX,XXX nearly So in fairly happen to because New be well. in read the level. municipal reading going these gone cities, you're the that and about notable cities generally, you going at if It seem regulations a to to happen always just all news, it's be we're York something

now on cities [ there's but positive speaking, many them, of York, not standardization, because a in are lot generally these the And kind it's New we and so work seeing be Google of listed to of with then developments. So of slide lot question... a a long there's to ] able

David Stephenson

not that specific to of Yes, kind directly to I is I can take doing. Google respond we're this. thing going any mean

do vast majority those approximately listings the only you them, Airbnb host, unique host are that step to I think the XX% you remember and though here. individual if get or of majority and them can that of Airbnb on back of

to the of of I have you larger kind you is not the stay, share have competition to defensible directly which seeing is have, we're to of if us. an unique amazing we think listings, one want you taking want moats us, the additional impact that that, from and that really if the come

the overall take of or faster of than continue travel continually. fact, market. to in And we're why kind continuing we In listings at to market, relative share this grow the our is increase

So beyond have that. I to don't much more say

Brian Chesky

just mobile only Maybe only the thing in Jed, I'd a bookings. say lot we're say other of the seeing strength other thing I'd is Yes. -- maybe

You people than of can not were on It's gross like mobile year last is mobile of essentially quarter essentially think to which less nights in And earlier, up Google. the not and direct. that XX% was bookings going a from apps, booked Android. iOS our native XX%.

I'll again, And just or of unpaid. direct say XX% our is traffic

unique. we hosts So list commodities. else, them. tools Airbnb the anywhere brand, we of people to strength of The and our is don't customer the majority And app, strength the build of that strength not think direct the is inventory direct It's key. our coming of reason it's for is they're because

to that direct unique I people changing. general don't So to come that's our theory, to see Airbnb. build that And allow inventories

Operator

Securities. JMP move next We'll at to Nick Jones

Nicholas Jones

today? Airbnb are little in maybe that? of view kind consumers' you think of how marketing do or maybe talk the of Great. more I a of pricing -- on kind role you I an room increasing about mean, and Brian, you what about much can picture premium you the as get offering, trade-off. about plays Airbnb while those the hesitation as maybe there how kind campaigns, talked down is travelers book lower? guess you of some Airbnb a to you prices discount it's do and consumers a feel to feel or kind of advertising guess average you the Is the kind hotels reliability bit paint not And up. Airbnb's offering, to as if is pricing, I a still

Brian Chesky

then talk Airbnb, and original price. our the a started Nick, the was people days affordable cheap chose was start early tagline let about we Airbnb the offering. primary a When I'll with to me pricing, And general reason alternative hotel.

is experience as the to used they Now money you say it, once reason coming used keep the the but back. we hook

stay also turns when a in you're in typically not hotel you neighborhood, it district. often Airbnbs, real Because a out

You have cool this really space.

a meal, of quick can make more home. You much you a a lot have more

more a Sometimes the have important that's our Airbnb. been you're community, the feel we we to be But what still opportunity have to for. connection prices benefits do And looking in local I one like most for there's even has of that affordability always competitive.

really true this if And prices don't they lower XX% host tend Within and you'll you're you not have money. lower higher your interesting is you of prices a a night, when make discovered. the make reason, thing money. typically There's occupancy occupancy lot Because at lower we to hotels, the generally, lose prices, more typically to up more per with and room running right? typically

at more of hosts occupancy they many if the bit, just lower low our they they have price that can a nights. enough sell and But always run

pricing And point highlight Supply, host guests, have so you in would need to win is we to continue growing ample we encourage it's to think the And for there's host. also I just just again, tools, out year-over-year. also offer to that competitive but supply. to a win-win I a win more addition want XX% pricing, if it's where many of a for

supply re-accelerate way Airbnb XX% Could to the supply huge approaching was months XX XX% This and a by are growth we nearly question ago. growth.

I is really key. really, think that

my -- keep be X, while pre-pandemic So my lot. the year moderated. hotels the increasing prices next will We're a huge to answer question. will a both prices in is to but hope Airbnb not more year-over-year, we've made further question, next And and is our are hope bit Airbnb come on up that they'll goes quite undoubtedly in hotels. almost more for be year, little continue prices to And down or whether up last significantly or your from progress

high ADR We and ADR, of correlation very the a the higher ADR, actually night growth the lower the the the typically think nights there's growth the nights the and between relationship higher growth. and lower typically

there's trade-off So a there.

as more continue stimulate that more think demand. we we to so affordable, continue And to we'll be

popular really like of Louis that people like brand. a We're like the is prices. very XX. for brands We're a a a we brand. than are people, brand. not mean much one resilient luxury Southwest I the Now in North typically brand and We're one just offering, homes accommodate Airbnb's vacational Airbnb families we're We're of brand. not family most the interesting different global the XX a luxury people popular one a brand. travel is also American of right? a brand is thing lot and brand. budget most really for most have Apple but of is models. probably just premium for under about because offering unique of under urban band Vuitton is type do an much travel, a they We're rural not hotels. brand kind better

to So one think continue for have going that's I the literally highlighted a But of we affordable, the everyone. something get as we us. more in public continue for drive things that to is growth we to more lot

Operator

And next, at Citi. we'll go to Ron Josey

Ronald Josey

a drivers to and more bookers. that bit question, And pie to directly little comments as site, bit and this Great. about just bookers. you're the on more just doing the brand, through Are there's more expanding number attracting on probably ask there? are to getting the update the trying coming the just on little users how app new bit point trying little wanted one. understand second with Experiences, Brian, any supply are a understand and to your through Airbnb, they I a these first-time I'm

Brian Chesky

free Yes. come direct the to can in on I are mean, majority the of that to bookers still this. generally But vast David at feel Airbnb. highest seeing first-time level, jump we

of kind step back. just I'll So

The a told to a member is #X Airbnb. family come or way them because Airbnb reason people about friend

grow we so media. through word have earned lot After of we mouth. a that, then of And primarily

is the Airbnb XXX,XXX mean travel to most XXX,XXX of voice compared I a articles some have share of year. to companies press overwhelming. We

have voice We a the than travel greater share of other combined. brands almost all major

amount also We a in media. presence of have social huge

it's And we marketing do in education vast these get House, then majority unique on heard months really lot brand have performance the And about Airbnb brand big marketing around house we advertising marketing. Shrek earned we might media. our beyond of a product It's or ago campaign. Barbie the You the is few our spend spend that, a not rented do offering. so that marketing, of pretty

more a unlike use not optimize like we balancing companies, we it really but necessarily literally performance do way can a think other marketing, laser we customers. certain in supply/demand, So use to it's to and on travel hone It's buy markets. that we to

or remains is lot our a direct of direct. it of XX% traffic again, So And unpaid.

I think that's been pretty consistent.

On Experiences, the anything don't to again, new following. have I share I'll now. say just

to actively product. We updates are working this on

X as a even with star. who satisfaction experience love XX% give reviews. review, people Airbnb homes, of a leave much As book people XX% have We X-star higher a think leave of customer people I

we coming you'll core opportunities, So should our needs was updates this updated really had to continually in of coming in this yet obviously, on most from our coming the have And some perishable next we product and haven't addressing see and -- service beyond the trying year product. the because just full investing focusing hands improving recovering pandemic, the this But we product. customers. we're which

Operator

Cowen. Kopelman Kevin to at next TD go We'll

Kevin Kopelman

on on maybe and you you line that travel the the about little talked features of of you've a expect community some touch Could for bit. your vision building time community a new more rolling for Airbnb out

Brian Chesky

Kevin, yes, mean even by I explain travel me -- just community. what I a think let

isn't one other just can experiences be variety travel I a biggest place. as literally you a the but to have become, homes and of marketplace quite global in that think to all visions services, community literally build we a a of one where to and company get

like we the we So technologies like a AI, ultimate and of use offerings an lot the that Airbnb can hosts. generative like can the guests travel app be can take emerging And agent. for Where provide

of this, So investing that a we've in. there's to been do number things

first is and identity account structure. The thing

Airbnb on check do. you host same of They leave people. can and we host you on XXX% And ID About as associated side don't the sign that on a companies, account of have robust you the travel have with a verified the can have but they to reviews the most have XX% bookers have information on they -- information. So and don't account, their an up even guest the of people and robust other out to account. book guest to can profiles. a as XXX% account guest also and

a Airbnb bit So this different how community. really does of little is demonstrate a

if invest our types we offerings them in host, continue invest think on of we can We trust, for continue more guest as can in to more then match to of system learn that we the Airbnb. profile and then about and we

think, affect business starting what reason powerful think is cover one, just that than the to statement, see. is Number I so brick-and-mortar obvious we're to is, this so is opportunities. this businesses. And -- think, digital I really And going is I'll is AI AI an more I X that

probably Airbnb are are than, a OTAs and say, from and OTAs Airbnb hotel more quickly benefit So AI just more to digital. going will because

And digital at so the sooner. transformation happen the will surface

there's One go try to the going XX with have we an a policies the issues, don't specifically speaking calling front especially we to benefit service. there's Japanese adjudicate to different of no Right up based hosting host to is, can't hotels. inventory, be these understand languages pages problem customer to can X have areas German and myriad really, imagine a really desk, and different We a of customer XXX and on service, need in a on-premise. booking people that The issue you there's long. guest service is customer is that now, you we're -- hard, problem, compared Airbnb

start changed since is can more solve as up in Hotels.com, these can what it's it's AI Expedia, much that not do better second, with same come agents pretty model a been. resolution in can a we the level has can world. and the where Travel in probably really years support much -- experience. Kevin, provide really supervise reimagining community front But search literally desk by importantly, problems every nearly the search in XX to

we you Airbnb, for changed search paradigm. decades. your couple fit book location, really something. much refine enter And you of box, a it that date There's results And hasn't you a and a

more moment can I could different actually learn about think They Internet a And mobile for like think this now for like you questions Cambrian I could with offer AI, app a where the ask booking significantly could models. they be greater entirely and service. is an you you. travel there suddenly personalized or

and Before we travel could way to lead travel think then it AI you. Internet, unbundled, there that self-service all used about the about actually change do they But way were it became learn And became and with and there's travel got agents, the a that price. that. could

at about, things think of thinking the of the it's we're exciting. are this. And really, just some really we're and these beginning So I

Operator

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

Justin Post

growth? I Supply for night Is year. positive in don't indicator ADRs. do us negative maybe or on drivers you think lower, is up on can about next supply that? is ADRs accelerate you growth higher XX%. give coming similar night know, that do a you And second leading And capture if thoughts room for How question that Dave, And ADRs? then any and how to the as

David Stephenson

back bit little a to growth. and market. Sure. start mean by ADR, Yes, go ADR I'll with I'll varies I it on side, the

listings places. are they people ADRs than is what ones. the But seen, lower the in of higher market, booking ends ADR average up coming the bit actually have in We were a happening new depending little on current

region of kind Europe what's And does that's versus It what's on available what so and the depends North And and a the it on are. America vary prices little between by offset. booked. bit

And good America, elevated, ADRs a they're more that's visibility for done the work of that In pricing, going we're be more ADRs host the prices strength North we've going of we're down. Europe, able been come forward. more on hoping have forward, to a us indicator the think bit kind to of to and give And Europe been to seeing little I in moderate some we'll how improve too. post greater with of continue and tools in that

indicator. the leading on So that's

think that what we're XX% growth is of leading indicator capable of do strength time. of over the I growing listings a great

the relatively earlier, Airbnb with said growth has line I in been actually XXXX, of overall of nights supply. since the As total growth growth

the because have prices I'm in, supply your at question, that can drive really prices competing likelihood more they or supply. get the so back grow actually can as we more moderate maybe fast don't that least more that the coming also which them first in coming board, the down on down supply actually more which supply to And bullish will we bring quality as can on, comes will market

of the So to I'm see this great our growth. been really It's overall strength bullish listings on year. growth our

Brian Chesky

And maybe, my is like life. for say done my of I'll this almost just years that this Justin, XX intuition having

on a over you, it used seems that no you're brand is when think as I supply hears and important of becomes like But one really important one about long-term once than the the Airbnb a very more is leading so world, all like indicator. [indiscernible] the you're surface. supply ever known growth that's even levers tiny Ultimately, big awareness.

and we And so long then as very Airbnb improve healthy we very, indicator. be And make bit that have the higher. a and sure is we to growth healthy long-term to love reliability supply promote we around world, globally number for continue that then a

Operator

Lee James to We'll Mizuho. at go next

James Lee

beginning when the were down of Great. remember about ADR mid-single here, questions guiding you Two Dave. year I at digits. the

how variable much was forward? unlock implications You were it sales about there? that Is up the just talking wondering fair going secondarily, cloud. in are now. leverage where supply to you we're demand And and about expenses advertising to demand-side like looks like like going I creating payment is on and more and process, can assume talk And right shifting it marketing, forward? you

David Stephenson

marketing. not with sales more marketing. and demand-side actually shifting to I'll start We're

that I talked the is of -- unpaid. we're call. the the is our direct majority on seeing success think traffic what exactly vast Brian or about earlier We

and why to family friends. Airbnb to come us to reason by is come first they're people They The us. directly referred

where of helps less kind focus demand and pie search where engine as laser about we and areas we us. use to focus supply certainly maybe want of a talk for have the specific and the on of than brand kind kind our we marketing of grow marketing countries or Airbnb of features kind have to The benefits overall all in we

So leading with of overall search us. for really to strategy surgical on it of is continues and driver with engine marketing then it, brands but work not the following primary our this well

I to have of our profitable terms the grow that to think right? in improvements then our variable X%. been year, growth -- enable us expense growth, approximately drive this been cost probably discipline ADR, fixed we've the of just excellent, And headcount -- has We making has continued the fixed unlock

and growing count expenses fixed head we're than revenue. So our less

We our and continue in service. support, to infrastructure have opportunities in of improvement strides strides customer to payments, make our cost et we forward Brian talked about and in good going operations continuing then of lot the great make cetera. a And of we're costs,

profitably I do do it while things of. doing That's the making just very primary not and is mainstream, that hosting fact can and the all those expanding that still the our and Like business, actually our proud it of primary perfecting Growth driver. something is core still on expanding growth. I'm margins our it overall and year, the down focus core service this

Operator

question next to from our Lloyd Walmsley And at move we'll UBS.

Lloyd Walmsley

could is that boutique traditional on unique you question, you preserving you of far that's where per a Is longer such the community of supply, kind about Or drive things like features expand about over see market talking sort things some co-hosting. there? Airbnb? the in GenAI, the differentiation too side, of term in more working addressable experience, search My still a way like hotels bring enough path these revenue on on enough makes innovating like have Do search guys community you out that like a while that of sort been your lot user and that sense? just

Brian Chesky

inevitability. Lloyd, absolutely think And makes that's I that No, sense.

Just back we in it. we the on believe very supportive much because we are hotel for inventory a having HotelTonight up acquired And pandemic second, before Airbnb. so much to

have is to thing Over years, renting else. can't thing. a we that that the people is We few core. make our said, contracted get on some our to last really well, most decisions. when individual especially most It's core made anywhere attracts business find That homes. sharing some we and the is initially defensible, focused the you thing had And traffic. the inventory our decisions, we direct all It's were differentiated homes, just

of still we already like travel and more towards now York. take for of AI for just to boutique and for on what people being lot becomes apps can a to to all have and what us to as some York, travel so think a homes tonight We hotels. be with said, opportunity And used I think of I certainly real York, example. Airbnb mean, trend put agent, searching will we extent. a lot others, They're less little New which have New let's is used I That traffic a inventory we hotel generally those for a New supplement in there's so-called have sure,

opportunity there's to I inventory. do way differentiated think even less differentiated with in us a things for slightly

are combinations to be I think our going and home. for always bread butter

heart had supply homes. think total I but market focused. that's is. think hotels. where homes where is, also to as think our because our I opportunity really -- be We've you growth the and that's biggest addressable should soul just been prioritizing not of we of supply only We've wanted

Operator

Wells move we'll to Gawrelski Kenneth Next, at Fargo.

Kenneth Gawrelski

it. Appreciate Two questions, I if may.

about up supply. double-digit room all week, to want new really every STR the are in happening, growth especially nights lot Western I markets? as it. least growth market? in back what of we The about kind you've for I read At First, go talked XX% where America, -- the with to us missing regulations. territories. a we you Yet know investors North that could here contrast supply this of kind help reconcile is this Like financial in

call demand then And any that you in this XQ. the bit volatility did did the timing in more in and room is of in specific, regions start on be just the nights on Or out Are it some I there you know to start second would called side question volatility standpoint, XQ? a more And out? October? see my Or you the broad-based? specific

Brian Chesky

go Maybe -- for Dave. I'll it,

David Stephenson

seeing in start specific a I'll nights. There's room the with region not Well, it. just volatility where we're

the potential thing it. issues We of this growth driver early year seen September it's quarter. of is which we're October. and the revenue XX% biggest continue overall. been a tell potential macroeconomic of rest the just too and maybe we've we've to a why growth the broad-based little global now, expecting to again, some into still think kind and late going maybe just as of saw that kind And on that right I it early a why geopolitical it's it's more basis That's called we much out we how our see and to highlight between is XX% the volatility

I it's the on think a mean, I side, XX% Brian lot already of have regulation said then And top that of regulation. what our XXX markets earlier

good when ways, I with been headlines a overall But issues our outside people in City, -- highlighting regulatory never tend think they felt make on global many New of regulation. York headlines, the short-term about basis. better I've kind of to are landscape

with extremely world of really and like have us many cities. majority vast We and to made the has things with partnerships City around our things good other cities Portal continue collaborate well the

So I outliers. But think those Brian? are

Brian Chesky

in in that actually types headlines. markets, cities around we're like for XXX,XXX in vacation and again, fact, big there's very read, have see workable like, not rental just seeing actually there's -- growth Census There's solutions. just in supply world destinations say, We're lot a a where And I activity. cities Yes. think Yes. of every And you the report you across I'd cities looked not all we of U.S. headline that at.

think hotel. that aren't exist, markets Airbnb there where of even X/X said I

in that especially rental if in hotels, way, there there's So areas. even lot where the aren't the markets just you a think vacation nonurban about of

few is like overall just while of the actually about they a So percentage concentration cities, that we say small represent very it to way I'd the market headlines reconcile you that have. read a

Operator

from Research. Conor at take And question we'll next our Cunningham Melius

Conor Cunningham

ADRs XX% for to today, likely hosts thinking the you on rooms the as -- of overall. people rate, new new international tools they've Just that just take kind using that to going Is those rate you've but you kind add maybe when that on move implications use pricing are about higher at of of on discounting your that curious as there. the into supply, expands? a eventually listed mentioned that the bleed Just be then mentioned before? X/X after over you more take of tool of rate is lower are you're are can markets, And towards your tracking the supply

Brian Chesky

when tools like at great you're than why adopt one, this Yes, the host tools. can you host. really reason sign is all up, existing I On the tools, first onboarding presented Conor. the rate new take and have higher with a generally, new like And immediately we

of call be that are lot percentage our we highly these Now hosts engaged have they're really do to host, of it, a on engaged, tools. X maybe highly, and a going like, million

But every to new them adoption supposed you're and host, far concerned, is like a tools whereas where they're host, as they're every the -- exactly hosting there's how new an as tool use to an way. is get to older you to on have used certain Airbnb,

adopt existing host. generally tools host we're new would So that a rate at new seeing faster probably than

host They're areas. a in lot the nonurban might homes. getting the ADR-related We're larger inventory said, being That also mix shift. be new related to of

can I reasons I that. So there's of to Dave, lot a you. explain different hand can over

David Stephenson

question can the And Yes. it international host? second on you take-rate was again, read

Conor Cunningham

Yes.

at a kind natural is there as XX% reduction over rate be that rooms you as Just to point? take overall going overall some your of in internationally, expand tracks of

David Stephenson

rate. we want be services the to and made take No. of capabilities, what underlying as would kind of absolute I stable. recent think over rate we think to mean, take our more changes able very way be is to add about that time, kind monetize the Airbnb. is been do We've it's no further actually way And actually, our that I we to

expand the nice been will monetization. It's kind that So core host add be increase guests, what has insurance as way kind said, as have a guest we and it. nicely. but to growing travel of beyond then add small, of of kind for more Brian done it's services And things we adding for and there incremental like

Brian Chesky

we services to could expanded inverse, theoretically, can because in offer new be the is -- you is say that interested argue you might newer more the they to And that new as could which them. markets, hosting

we expand So opportunities. sure markets expand new want to percent to host that services, are we in make as markets as those of and we new new new and host

Operator

to no conference there questions at Brian And time. like are back to closing remarks. this would the I for further Chesky turn

Brian Chesky

Well, today. All everyone, right. joining thanks, for

highlight year $X.X -- our and records. I free the last XX-month adjusted cash $X.X Just EBITDA higher were I to recap, a want want trailing was to of revenue both free flow than ago. And income as billion, margin XX% thing flow was is QX to cash this Net XX%. billion. represents just well And -- a

incredible the focused. And make to And so disciplined really the be out I the this years. made real team the just has want last a work think really has cash-generating over I We've hard team really, some and machine been that call to to to business great done X try progress.

forward winter leap a in Airbnb making reliable as take to going more we're part our with week, updates some Next big of XXXX release.

X, learn So see more, I hope you November Wednesday, I'll to there. you can tune and in. It's next

Operator

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

now may disconnect. You

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