ABNB - Earnings call 4 2023

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Operator

Good afternoon and thank you for joining Airbnb's Earnings Conference Call for the Fourth 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 Angela Yang, Director of Investor Relations. Please go ahead.

Angela Yang

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

call we Dave Investor on the financial of and website. issued On XXXX. today, Airbnb's shareholder Relations results our Brian and a were our Chief section Chesky and CEO, These commentary of Financial fourth with items the Officer, letter Stephenson. Earlier for we have today, our Airbnb quarter Co-Founder posted also

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

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

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

Brian Chesky

$XXX We I and marking afternoon, XX XXXX everyone. Nights you, wrapped million had results Thank with Experiences you. am with and joining. QX, Booked right. All strong another We share to was Net our quarter. excited adjusted for Thanks income good in excluding tax billion net of was million. items, grew margin nonrecurring XX% income our adjusted an loss quarter $X.X XX%. Revenue ever. representing fourth net But of highest year-over-year. when million, $XXX

For our stock. authorization highest our XXXX. approved Because to repurchased our today, up billion excited Directors and shares to the $X.X flow balance repurchase strong full flow $X of share billion was $X.XX of of our we announce And Board sheet, our during A cash year, billion, common of our a free ever. I'm cash Class new that of

core. service focus hosting Our strong beyond expanding strategic priorities: the results in and our by XXXX driven X our perfecting on were core making mainstream,

just focused hosting First, We've been in as we're making making traveling on Airbnb. mainstream. hosting popular as

also to approach we the in in Our saw $X.X million overall we sustained to double-digit results and community year, raise million XXXX, QX, globe. regions. our all the supply All increasing experience. by continue improve post XXXX, grew of around growth going XX% host are show earned $XX all, awareness that year-over-year, Active more our than across listings hosting X and This In end working. exceeded around host to is the host billion.

service. core our perfecting Second, we're

our positive Over option, reliable years, affordable We've X we upgrades the and features significant already and made more new launched are to more and Airbnb to core first seeing we've a make XXX a than improvements service. impact.

period For host of is a this XX% a post X/X weekly to monthly discount. our ago. XXXX, by compared example, have and now cancellations of QX offer And in decreased or year same the

improving and we'll core never will the In focused We perfecting stays. on of stop remain service. reliability year quality the our ahead,

and now investing years perfecting some ready and focused chapter. our we're expanding our We by We're international growth great on are we we on last beyond the Airbnb embark point. more service, unlocking markets, is are results. opportunities core. the to spent next at Finally, seeing an inflection core in X underpenetrated

mean, Following been. countries, much of made we're other of beyond time offering Airbnb to and service business the the want a Korea, was is offer playbook us just Switzerland, service past now our the over seen before our with ever because that X we've out it's Netherlands. reasons is in Belgium better rolling for and Airbnb. success And bigger quarters we've to strategy believed why. our people them are new. and to few And now piece And only love recent improvements to expand including reinvent a core X we core Brazil Airbnb there always hundreds a in Germany, more But destined we years, in now than stay. I something that first, than this is place

have of Second, and we've new imagined. we do able there world, do never to talent AI, have to the best more. could attract things will us And the much now it some and third, a so platform with we the to in been shift allow is capabilities

we While Game we service we can efforts company AI led Sells of in with years, and as Co-founder developing most Planner across our of in interfaces AI, accelerated acquisition our original leader world. In developer believe we've the a AI the November, using for AI SIRI. some by innovative been the the and become personalized of

core we're place, to With ready now critical expand our these business. pieces in beyond

this a more end of multiyear will year. with be we journey, share and you will towards the Now this

Now saw of also on QX, highlights. positive number very a business looking we back

the year regions. in First, and we X.X active surpassed saw listings XX% listings. nearly supply X QX million million over We X.X the growth growth all ending added meaningful million hosts supply XXXX, with year-over-year. across platform in grew

saw we real in the demand. a is regions this growth Now And with highest the highest highlight.

network there's happening strong a real here. effect obviously, So

see growth exclusive with these host to similar majority to supply and also the professional among of listings relatively continue individual We Airbnb.

on second, continue Now we see demand strong to Airbnb.

from XXX,XXX the amongst of quarter, remainder Now Nice and this additionally, following Experiences and momentum in volatile compared of is the for is similar year-end, charge all. lowered bookers. listing their compared growth [Indiscernible] removed we're XX% pricing some finally, And year guests. less marked which from app our listings, in affordability a highest Airbnb didn't year for QX bookers, more to nearly And for affordable launching ago to these up also host, Booked app especially we to our in Nights gained and downloads throughout a Booked listing we've Since or grew tools for Nights X.X price in new is gross host several encouraging. make Throughout true Nearly driving price to transparency Booked rate XX% XXXX, also which introduced particularly of guests. the active quarterly accelerated have app. cleaning XX% first-time bookings. seen use features ago. And increase features, area. the we at the first-time by year million fee. others and actually of listings October, the XX% to hosts of This were

average a our year, is So night. X-bedroom the was Airbnb period. listing price period to $XXX X% the same while rose is down This of X% hotel work December, on $XXX from around In nightly paying last prices over off. affordability a same the

start, on Now I Airbnb's announced Officer. before end Chief the now turn to executive year. latest want last I of at share first Business Stephenson To is Dave X to we updates Q&A, the

our than years, X and past business Over stronger an CFO, is ever. job Dave has incredible as the done

a that And drive someone a not that whenever of world-class finance our world-class of to the together Dave. quickly doesn't He's clear about outcome Dave a to operator. qualities One series leader. turn I remarkable is need I so to is also that operations just compromise complicated he's values,

Dave long-term leading supply to our an plans, development growth and at and businesses As business be is host all will executive continue will and there growth dedicated we Airbnb. new to than do growing paramount includes drive expand activities driving expansion, this. beyond across have and our nobody this to better core, international to it and global existing Dave corporate

position, Dave as thrilled am be takes will our Now Mertz on this that Ellie I CFO.

finance and IPO the years, has our already been my our of you led one she's XX this am hand XXXx. Investor Business Chief Corporate Xst. pivotal leadership, And Ellie during from of we've at where under for most And adulthood officially into has adolescent record company already and Ellie to Relations. role. Analysis, that as Dave has Ellie moments and I You right Officer; Airbnb. her with history. transition on to for grew strategic over years, will growing started Development role March She the thrilled stepping several and a past company's our in impressive overseen track revenue know see in many CFO

So from you call, hear next Ellie. will

David thoughts. to we Before I'd a few Dave? to just to over love questions, share to hand go

David Stephenson

X Thanks, Brian. concentrating this role, In as role focused by I'm Airbnb's new my Chief specific driving Business really areas. growth I'm Officer. in on about excited

third, and world; the of core. global First, underpenetrated and our we continuing countries; supply in businesses around beyond and our to expand stays as expansion grow high-quality leading launching new efforts second, experiences developing the

this CFO next said, a is us our has Airbnb. I month. think better phase couldn't transformational for of a of next becoming into I look growth. Brian lead person to to the year Ellie As forward

And for up so open with that, the let's Q&A. call

Operator

the Our from Ron line of Josey Instructions] first comes question [Operator Citi. from

Ronald Josey

Ellie on beyond well. more ask the expanding on as wanted you congrats core. just Dave, and the to I to a role bit Brian, little

on Planner. to And markets, we can from, Brazil AI us it more also apply said being us you now then the just about But under-penetrated leader the Can how and markets. in newer learned Belgium tuned give that lessons personalized thinking end year. is it, Game think about as a to of Netherlands. just the Switzerland, acquisition of these and AI. Germany, Talk you time to Korea, the think about do to you're stay newer given you little these I talked then towards insight about you a call

Brian Chesky

the Yes, question. absolutely, Ron. Thanks asking for

AI. So let start me with

just use So of city. about city, like good a to is mentioned applications in those zoom real-world have think And top out bridges. cars. it I roas to like we we're roads landscape. a out bridges, would infrastructure about be then building way AI to let's One AI, the and And we to have on think metaphor. talk I lay that

company. model be a large is not obviously Airbnb an Infrastructure So would or GPU. language infrastructure

going infrastructure. So be to in we're not investing

be obviously, So language AI, open relying models. Google model, makes we're not on, a Meta large building model. be makes We'll great going a to

open, ever So on build interfaces to And I one created. those real AI the are believe is ChatGPT layer. innovative developing It's is the can make AI interface. interface. classical really an is and where And leading way if you really we web XXXXs really infrastructure. application or typical this They're most the XXXX, maybe the as excel interface in we same powerful. But one sense of that infrastructure. a can The very of to the models interface though it's Google, say, not were are the

underutilized. So probably in a are we feel sense, models like the

not have fundamentally your way on since generative iPhones it. Here's phone your saying the the another advent phone. changed all apps of look of Most AI. Take and those

So you about And We rose platform think platform shift represents shift. We to of AI is It's the the what had during the know, a Airbnb power. shift, the thing as really ultimate I behavior. shift mobile, mobile. internet. is in a there also a had rise

a that we us. I would ever they everything, the AI in an one like That single are that's real technology for companies to AI around allow things noticed I AI We're interface think of unlike went the with Imagine platforms. And time work cross-vertical early services from And you is evolving changing a ultimate you to be generative no because efforts Airbnb, to and Apple I a we we've to we but know, developing than Concierge, short-term expect vertical this they vertical going announcements companies AI. And is provide big should the the talk think creator launched to to seen AI AI more interface doing or already largest specific these a studied vertical. late personalized And acquisition endeavoring later from was Game 'XXs, Amazon with specifically will when game, you where ball we interface go an like much in so X-X adaptive anything not did when space. aren't It nosy. company and about And or on the experience very products call leading -- you we're was the that that X that feel us of you've you've the so tech seen company just Siri. and app an And large built a have ever we're and horizontal really is what XXXXs, to an think before. are year. App this that's and Store. this that was before. accelerating platform a on. going books the the single interfaces, And It's see Plan think from I offering, some as

David Stephenson

I We've the markets. question penetrated things. under think a was, learned do few

and need sure just in to have that we we make great nights. First, great supply specific supply

America. in payments installment just to the [Indiscernible] holidays approximately we full XX% third approach what targeted where funnel engine countries countries, approach. a that the to Different are is on the showing that have price sure because build like just full done the local just we approach. But on to have that even And marketing up that very X work flywheel. drive making So things have of direct looks PR, In there, enough these have traffic and having social but can unique that brand include make very in Brazil and some full in all continues of marketing, influencers, we our Airbnb then effective marketing a to together this they're big now top the than marketing, in and majority us. of that we're it is Latin log-in in locally we -- we've we're to when sure Korea, small these have points. or ground expecting. communications, the expectations And subtleties funnel ensuring funnel ways all the growth unpaid implement of that remains do use team have on the supply we're at of we product, true like. search countries. being right different Lower stays then

Operator

line question Goldman Your of the Sachs. from from comes next Sheridan Eric

Eric Sheridan

about looking And both as QX, demand? you're I elements see the by you sort the thinking exit environment what way dynamics idiosyncratic and was the for blocks and building of macro at curious sort sort how the XXXX. are the company the growth of of supply driven do is from

Brian Chesky

remind guided was on we a some -- what XXXX start we exiting seen saw interesting, so kind right? the rewind of really we year. nights were costs, stable demand and quarter we there's When October. growth of see at comps in lot in in growth and to in strength, yourself we demand accelerating into travel. to of demand last we're which have demand then that in -- [Indiscernible] what quarter, you But that a that pent-up XX% kind coming Again, exiting were the for ago, have December. January those strong we seeing fourth we this QX. And then and what the call softness And actually come in of year, we the just tapes continue to revenue expectation. And harder then harder makes November is as of from demand and for against kind and saw XX% we of some

things. for people I think bus that of very other see robust kind buying we a demand necessarily urban just versus stay continue to on

to in continues greater to established we're that America America Latin Asia growth excited and our and we're growth see see the in a continuing things Europe big experiences over North the to in be Pacific. even And businesses So trend. and

rest as continue we penetrated, question growth of as So us to where and that's things, that for invest said in I doubling I for year. the the these sure about on do to under going down expansion we making we're countries drive think last the

Operator

from comes KeyBanc. next of from Your the Justin question line Patterson

Justin Patterson

the a there's further, cross-currency year impact been from should you talk potential of regularly that think this that? viewed time right, lever? the that is in actions over So now interest in pricing And around take course past? about pull All view then more to the that investor of phasing could a about you'll the disconnect financial as the there's we where the just the How you value we sign fee. right of lot and why the than

David Stephenson

it ability [Indiscernible]. it clear, And just the updated To what when service. to our us implement forensic be did Yes. we announced is of across we terms recently, gives

it. to So service of update the us to allow we needed to just terms do

differs Now currency uses the for the when the of their the listing. currency host pay fee that only to from guest the applies set

of to cross-currency transactions anticipate XX%. than we which to the be our anticipate the X%. majority gross different don't of because approximately our to majority of is this cross-border, the And guests XX% our So fee affect only booking value. the are closer we fee to changes It's closer

a guests we're that begin in our where the and So complexity making and Why test providing of going that just testing and now? are, sure ensures to understand There's evaluate and the we business we're what that will just see we should results point things be April. were size months. year, benefit a our change to That did getting. for stay fees We last to saw maybe beyond our had fees relative value that where to the and the great was high opportunity an too we our we host. long-term like X we're

a make our we're just there's our in we be take and in want nuanced think make value and degrade hosts how I we guests we going those sure giving over we're to than our principle more to going that fundamental continue choices to where more forward. to time,

Operator

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

Brian Nowak

of big X I picture X sort have and accounting.

of lower of have conversion power guys to you new on a and gross existing progress second and sort getting And prices versus around big one, et cetera. If host the the this the interesting Dave room Is get tools improving mid- we're around of high growth have sort for about in revenue, calculation? the the or we're pieces guide. moving host lot thinking kind of in missing of you there of growth through bookings lower are we're areas night are room one, to of sort prices you've to and hurdles to U.S. kind single to a that overcome to the getting host, if And that of to picture and U.S.? or right, talk So there's can sort Brian, flexible or pieces XQ to made what of night host made more just digits. moving you U.S. lot sort us changes around of the Ellie other

Brian Chesky

I don't Brian. Why start, Yes.

the X quality going really think is could that on conversion buckets drive probably of One Airbnb. to third product of optimization. our really work work like of next you are The And is is affordability. So big and reliability. really

So couple we noticed affordability. and call I'll was all our of, there was ago, that let a feedback A of X, guests a about start Airbnb getting that more expensive. years it, me with from talk quite lot we're getting

services. so hunkered down with for tools And starting a the see toggle on and of display, upfront suite really total a make guests last we you to being rolled and fees can and now host and price their and affordable, cleaning total taxes including turn year, out more price where

Now positive is We've are really prices. listings this pushing seen some better to because important tool knock-on we at more effects. also now demand really

now For fee. or cleaning to eliminated weekly example, stats. fee cleaning and don't their did more hosting discounts reduced for [ listening thing encourage ] XX% a have The we listings of next globally or even provide have XXX,XXX we is, monthly

are are and know, out XX% discount. monthly our have now weekly, of or X a more X a weekly monthly than you of As host well XX% nights stays

product So called Compare launched been this And huge, also Listings. improvement. a we has a huge

and what is not. that listings a then hosts they're out or The to X%. optimization. they'll likely if booked the hotels our are can charging X.X million down The they their that up listing. are we we have for rolled Brian, other see swing. things of a is competitive globally tool which, price more since in getting neighborhood, where are the see X this that apartment and more result turned bedroom prices X% tool, of Well, X% That's similar year-over-year host noticed means whether have they are on, next is provide One product competitive

about year. last think of We did it. to billion revenue way simple $X.X a Here's

we that's All we high-margin So let's simple numbers. increase revenue basis to have presumably $XX million revenue. of really can is the have of $XXX and And traffic if because million for Booked on we round increase to $XXX Nights converting $XXX that points. billion be by website. our we're really of million to XXX like very do revenue

number increased And of so on there's compensation conversion we're doing product remain. things a

noticed, One of the not you is inflexible. big things, as

Here's a think simple way to about it.

out about that be in location, by sold If supply, to point their to more radius be close flex we're Airbnb. their the we where have massive. or demand getting can never are little we a just We would dates, flexible people of more

people our now very in application made typically We optimization are we And download application. United in bookings app. more also a of our now some the native get to to States are a top and now XX% XX

reliability. person launched What things Airbnb, is I'll of to every if some an are The stay Airbnb business. in people We literally person this of limitation. a Favorite. people stay at hotel, every sorry, size would our we double stays launched on the in The those those product about who just thing hotel X stays a for do So that quite reason who we on a could Guest last talk stay in we is X hotel. Airbnb, X is that in of people for

are well, And to had what reliability, Airbnb we are it's habitual, down. was in launched XXX the unique That's, a in million attract consistency on asked rating service number Guest reliability they before. the repeat this with Airbnb. think booked hotels. when seeing ask costs get more They a best affordable, was And better by are why product of we hotel X-star And a product Guest they've so One, go people from listings there's character, good but of comforted hotel of you Airbnb that contacts it considered on we and the review X Favorites. the X higher will reasons. don't Airbnb trips, we standpoint, customer the more Favorites on that's as that and of service have rating we if better in And all towards exactly Since based was experience. the Airbnb we had quality as us So consistent is people the book one, bookings. customer have it's trips There advantage because, equipped. they shift a million always more to November, never are. bookings hotels, that unique course, book data the fewer other they

those last So XXX we're the we're getting before hand X larger doing. year, years, are say just that's this it last Dave? to are of had but last we just The to is some thing did and just last year. I'll We things over that I Dave, have upgrades started, the about in upgrades year. XXX XXX significantly we going --

David Stephenson

In especially again, lot comp January. holidays, nights the year, guide 'XX, have remember that growth of out we you of pent-up demand of and terms versus room hard in much on coming there where saw in QX of have to think we a early stronger a QX was I growth, the

thing QX the this QX. about that's QX Easter I from other is think to moved unusual year

nights their So own helps actually points revenue travel the we fewer on our are period actually this a as nights in the to basis QX, people but in actually doing holiday. is booked get in drag XXX by actually because XXX

QX. shift nights it will to QX So some from

slightly helped and nights hard So the hurt a QX bookings is revenue book and and forget then QX QX don't QX, to little comp. to bit to

QX. growth in XX% So the this of we from is moderating why have language

Operator

from Doug JPMorgan. of line Anup Your comes next from question the

Douglas Anmuth

that bit for help can on commentary core or the primarily little is more a something incremental could beyond the kind and tied of us about drag existing Ellie, just investments better initiatives year? business? of that learn this margins. on the marketing EBITDA the talked Or understand the around just Is or that later expanding some to that new that about the around we'll about you Brian

Ellie Mertz

pointing actually was but start to thanks me. I for next quarter, it to going Doug.

saw we you that terms floor year are what language giving of full guidance is margin guidance. EBITDA we basically in So in that the ourselves the a provided

to XX%, of year we minimum opportunities of hold is variety course a from to will is delivered to said, flexibility growth continue The in down over we which have we a appear. provide we slightly that intent of the the really in As here what XXXX. they as invest or ensure

might in So have expansion, what our international robust the to margin terms newer we a in be? at So those there's markets. pretty budget of but invest certainly continue first, opportunities to

at at opportunities high and marginally our top. adding the ROI Second, channels marketing there's looking always of in terms

the development what road note, our by Third, we often given is our there. product that around obviously ambitions map, resources constrained

And may resources what to we add obviously, incremental look overall then our product of regard platform will much with the said And so haven't throughput the we team. extensions product finally, to increase to and look like but there back broadly by share also in the the of want of meaningful we're flexibility year. ourselves give we to to something that able the year, end ensure to the

Operator

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

Justin Post

We there's of medium kind nights? are in for big nights due key just -- cycle and nights. going how it just thinking and I comp of a year, And the rest do a and forward? tough growing the reopening, to the And to that about now. that conversion over was know level just where want tough about of term? night room getting picture room about over it COVID Is are in QX, you better. all comp The ask can kind partially you we're just like looks the grow supply drivers what but QX, think the but saying, the in where but

David Stephenson

overall demand Again, to kind see of starting Yes. normalize. are we

exceeding versus also share of accommodations equaling either you competition. growth Airbnb globally of kind traditional nights look at on versus to nights think accommodations or overall and our and continue we take I the our and key are to that see

around this I focus active at key I of hospitality that think saw million growing on the conversion incredible incredibly we [Indiscernible] lot X.X competition. if with growth, nights I year-over-year. of about been strength lot listings, to price, we uniqueness strength continue supply on is relative to The And the terms exactly strength guest Brian strength that being hope room they're right a So vast of you're us continue million shop growth. not XX% for throughout Airbnb. the whether that and things of critique the majority sufficient show have And or each We unique hosts, of think a home also that right. important. in to gives making and find that, to X just is talked and perfecting year, easier look There's see our supply. you listing the traditional lot to is it we a

we've then is sure So perfecting And vast the the countries we to just the underpenetrated of there. areas which a world. that's is. piece, the Brazil finding view way a last also And country, view, in targeted we're since is to where the And XXXX. growth. we and what a has around nearly think And I when the talked where incremental a relative majority core that's service doubled unlocking opportunity make each are supply marketing wide about in product view we've apply seen

it's underpenetrated countries. and doubling supply, it's in it's yes, down product, full marketing, So it's

Operator

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

Kevin Kopelman

talked you're the on year kind plan the support on color initial marketing follow-up growth margin you Could for the thinking about? of had and on I question. thinking growing you headcount, that your also the initiatives how a to more give about any

David Stephenson

Yes.

X%. percent. at to In low- maybe could headcount, kind mid-single be grew year, slightly of grow headcount digits that, it we about terms more mid-single-digit than of to last -- planning We're

product of Ellie XXXX. it of what same it's on marketing be needs is marketing, largely around going but see what expanding additional we we're probably costs above of some we've as the marketing in to our seen a of such going with core I percentage depending great countries largely, not in terms think development could revenue brand ways, but revenue keep are, see In is was mentioned, actually leverage XX we on kind efforts kind our the markets. what As then marketing, as growth. success And overall in to world. We're our to will

it's not that's going of than may in to the there So it incremental to be any last business support And are extent larger percentage that But there investments this. as included year. was to marketing, materially see then a revenue be newer we'll the other areas. already

Operator

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

Lee Horowitz

gains. Can set your larger and time to competitive your U.S. that the some expectations these sort look particularly Are in any through of you environment. share any spend of against lean sort maybe dynamics competitors of the defending at competitive type or as more for of in talking competitive holding a investments in some share the of share into of investments the aimed XXXX,

David Stephenson

competitors. the were to And kind cross-listed. think try to competition of undifferentiated know not -- take we outgrowing continue able seeing that share. is and overseeing. I North by And to that competitors. in well, take We're on to both professional have the of America of able focused differentiated of a has supply, from we're unique is are often going to and that seeing supply us. think incremental to competitors to and what were benefit It's I our We're net hospitality additional lot I doing and which drive We're take been bring is there. is our to we material that supply kind which having traditional come on success that any do not nights share host trying a

that's where seeing. we're the strength So

Brian Chesky

choosing we for Stan, to lot I'll just that, a of have stay. add competition people places

And hotels. first Our we're main than competition much of all. so smaller are hotels,

about stays in that people a everyone stay hotel. X For Airbnb,

to because, So of now doubled come us we've for our one I again, bigger to the market Airbnb, think opportunity business. of need the size to is you all is take and share them

grew think I share the region. We only scratching we or every every grew maintained surface. region. in We in are

[Indiscernible] Dave world. now we category this the said, are all we used the have As over in brand --

custom-built advantages, ones a offer only to going with the that like the host we're platform. one And on favor, only the our built strengthen one continue to tools including The to custom are offer that. We gas only side.

share. can focus we we're is to to take that, game we best the if going play And continue to ruthlessly. to So to continue executing do continue

Operator

the comes Oppenheimer. line Kelly question from of next Jed Your from

Jed Kelly

Great.

Just a couple.

and thinking that an those the lot about you've Just see to supply year one, we give softness start health room going this that just demand? should of about year. how of a update catch short-term talk you about on rental, we demand can up up of I nights think growth know converge? XX%. And rental to the think starting in to market, -- was you had U.S. great how Should we you're a core the destinations what can then into vacation, us last after supply

Brian Chesky

Yes.

the a So growth, supply the started since that growth company, most know growth supply Dave growth rest. the in during about stop organic why supply healthy long-term one And the is I'll the don't it our let but I indication in comes pandemic, asked us. we're to been believe questions how long talking about run restart at is of that answer supply great you'll that I of just start growth. Airbnb. is we on of Jed, to thing it's I pleasure The going I'm got biggest and of the

increasing are hosts year it. of the it's is That's them and last And the we the mainstream get strategic host fact, XX% hosting. prior people In on friends really number a few started really about making actually throttle last that easy and actually typically highest The -- our did we ever focused Hosting the to new We debt. new things. awareness. tell priority it before, we began, their the reason to year, been. And on put year because

inventory. pressure the the you grows the we're more being have, know, the hope relieve is, and supply Now even you one that of reasons as the we excited faster pricing growth so you it about XX%, more on

what So diminished. see supply go growth constrained, when up you nice typically as go you're and typically is prices up, prices

addressable hotel. believe exceptions space every again, a in very single Airbnb market stay few with we is total the that, for who person So

a So supply that can build get can price the we we right right company believe demand and we then at capture the significantly larger.

by having have quality will Additionally, us even to think that, surplus supply, tighter a we allow control. of that

growth your grow be, could answer even road that think we of we leading demand and be love healthy could the of indicator do down where to supply the XX% great So to faster. a question, our supply

David Stephenson

Yes.

and multiple what's interesting actually you up over think back look I years. also is out

amount X so supply total back at go you nights fairly amount the years and actually It's growth. of look the total of You consistent. versus growth or

times times of out say over supply. lead demand as, Brian supply helps and performance. and our terms the leads are definitely equalize supply mentioned, demand there that I'd a But things I specifically, things. So in couple time, very greater overall think those of U.S.

seeing seeing inbound very of I really in unlike in and coming and last nonurban traditionally right? the and we've seen the our grew others in substantially markets stable markets, that stronger, in continued strength. our COVID. to we're Just kind the growth And is strength healthy growth is area now overall nonurban U.S. and modern We're lights. growth coming cross-border we're of U.S. We've think of seeing hold very has growth Urban been areas have traditional area great areas, in our been the of back covering Maybe share stays. during out that long-term a Urban strong

stays of or So quarter. XX% last the longer of our were days in XX

So bit was from little up a that. prior to even XX%

closer it's was that's that's of in critique of nights of benefit going away. XX%, XX% lot was bigger to to a save, it back a long-term it still well, there's our when post-COVID go XXXX growth. think Well, I than materially

there. really seeing great we're So strength

that's America. what in we're North So seeing

Operator

Timothy JMP line of Your next from the from Shiba question comes Securities.

Nicholas Jones

hi, -- is on. this Jones Nick is this

in X expand rolling that out hearing to Netherlands. into balancing And at I to XXXX. forward on countries of looking countries was with kind this of of lot I kind X think time? Belgium, playbook of more or it many more to and to of a talk should you new in these guess, out to focus rolling continue is underpenetrated of countries these the how additional are Is we're initiatives expansion from later playbook cadence we playbook You about kind a kind kind international expect this this markets, our to Switzerland,

David Stephenson

Yes.

base it. do kind our are then do I the prioritized think judicious of putting we sure make capabilities. way these a the each is kind things. locales, we being continue do very have working on well in ground on that these that's small the what full our build sure the up a have making see from. have to capabilities well how of specific a established team going us sets of about we're strong, to you'll of and down quarter location just marketing that's unique we're this that adjustments of we expand we working product largest as what helpful. down And working the then we opportunity, funnel None to business to of that We're be -- establishing to for And get we're What's our might perishable list of approach what list. a kind to

Brian Chesky

that, extent, that I say, other massive Asia. really made opportunities focus Canada, We U.S., us, especially add just with be penetration world. I'll point you is on I Korea, should if there's United France that And but think some to of parts think higher and in Kingdom front our did look the at the significantly than and maybe they're lesser Australia, a of

we the we're is penetration reason tourism of mature markets world. market. our in more no scratching around magnitude think cannot is There major fact, Asia. the an States the we penetration equivalent ordinary mature and In than U.S. the most United in only why -- more in higher they're get penetration market than to the And today's service

getting these of to So pre-pandemic, is is just add thing just the continue But Again, in double getting it's one. the going Brazil going in to getting are double we other Brazil. by Germany. size one countries started We're now started we're just but Korea. to started again. We're West in

so we're And continue. to going

more to next phase continue playbook. We going first have we're multiple and is phases out playing Brazil, go on of to And the the we but phase countries. out Japan as Korea, this in

Lloyd Walmsley

James from comes the Lee question of from line next Mizuho. Your

James Lee

about is booking My window. question

window think XQ year, I was extended. in last in

prices would to that any helpful. this seeing you differences As lock are consumers just be so quarter curious Also, And far, seeing for try region? by you accommodation. high in what booking were

David Stephenson

booking bit more relatively back window over a to time. windows stable. been come Yes. little has normal of booking kind We've

globally So there's say it. are as actually lot to consistent It's not pretty more a state. a now things to normal on returning

Operator

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

Bernard McTernan

be more thinking first-time was and drivers full thinking you're anything specific AWS OTA Is initiatives. retail then meaning talking about vertical more the to a Or you any there? like all this cross in just Brian, industries. bookers vertical, Were we travel? aware Amazon, more new or cross And to in like just of? the about international moving product about platform, else that should beyond bring on

Brian Chesky

far Airbnb going that to comp can think core. But go I I the think we're beyond with our years. travel Bernie, in start

road, So think start travel. we're going do down then we and I can with is the move to beyond what travel

the what and that So you will then as successful. are from do the start out the the then are by things we launch move part us things seeing should what was core further of logical And second the we most we should -- further provide our and of we already extensions question?

David Stephenson

is but about first-time Well, have you to going what anything, part and -- the if start, we reliability, making I bookers. see and be can Brian, bookers of sure it reliable. the is that round key service miss I'll it's we that growth the they like first-time feel out

we that has work sure sure we get downloads then cover highlighted top strong been awareness, general comfortable business. and and as has to great. they're are that overall, strong the funnel is across done prices organic that it, booking air strength along area full the that We're aware of of like to do approach call moderating been make we've things been which So just people the these the things mobile just international cancellations marketing the countries. promoting we've like an trends making reducing seeing RBB, at doing on in

Brian Chesky

and Yes. I really we're really of one Dave is the traffic having advertising in results said. campaign. good. mean funnel of a things what like And successful highlight reasons one, why I mean, all, a just number first are addition I'll few our

was advertising And think trips things how are a competitors. really approach, better are and have we than we know, a our in as of really than buy panel some have of marketing customers as wanted we always noticed very more people marketing. We trying to As about we approach that the not Dave sales. to education there you mentioned, that full [Indiscernible] educate typically just through We're Airbnb. to different one generally,

money have own staying you're and with or hotel you family, groups, a room makes If rooms to your able your traveling been if you're house -- [Indiscernible] and complete we've X your hotel bedroom sense. different getting if you're traveling save logical share

In running, most digital As successful advertising the on we've and now this It's Airbnb. Get we running it's called, campaign it's ever television. campaign have done,

example, We more with our became the the also tapping and more and culture. Malibu year, into and a Last are turn biggest the it That into articles we Malibu for partnered pop Dreamhosue, got than Barbie social moment Dreamhouse. mansion IPO. press Barbie to to a phenomenon media, Mattel on

just In as fact, IPO, Berbie Airbus' Xx as Dreamhouse all to articles many you the sense. were give written a about

And So can going We're hopefully said, lot of of as again, points of Dave efforts, can hundreds convert service, these that lot conversion of Airbnb. a increase efforts. a of improve And if have opportunities. growth a optimization, coming to customer we map of then product traffic, through traffic think relevant you have basis culture. we to then an continue we where imagine entire there's to through I stay some reliability nice road within

got a we've big pretty arsenal of So levers.

Operator

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

John Colantuoni

Great.

to of in markets still some market? to adoption consumer areas why need your rates biggest you're is investments to this others? the travel any of across where talk now make EMEA where know versus markets Night European there's higher like drive some I could you Switzerland, year. Maybe Netherlands. looking incremental help big and seen sort regions, Experiences still adoption the Just underpenetrated you've and has moderation you Germany key in And Belgium that and lagged

David Stephenson

Yes.

growth more But growth and North stronger to in continue established Latin America seeing see America Europe. relatively we're We still and our markets, in strength in actually Asia.

order kind China that I'd XXXX expect just mean of by coming kind above growth. so be really see year, high And off outbound should gathering of momentum I any of China the outbound is levels. the APAC moderation overall we to end of travel still additional say encouraged

continue strength, to year. the especially continuously we're have, this tailwind rest for playbook we I this going So that think Latin for in growth, international America it's great say that expansion Asia and and of I'd a to be

Operator

line from of Gawrelski Fargo. comes the next Your question Wells Ken from

Kenneth Gawrelski

I'm could either core? you build this to later expanding you how talk the but sure respect more the partner you'll about think tell about year, with beyond our us strategy by

Brian Chesky

Yes, absolutely.

things from of. created Airbnb and just one product -- about So engineer. is that this most the is designers developed organically. whatsoever Johnny from speak And was and an like innovation our and I think really company of a no everyone our our that X I nothing to most business started DNA capital by of of people with great engineers, And created becomes we

to nearly growth be we more think it's X XX always GBV, that our That is we out is said, be of build of brand. and I the billion a a and our able partner. also but having brands we have, have, have, reached scale So guest going with arrivals partner and billion huge us traffic DNA, being scale not of to And organic to number they us asset of because that strength telling have predisposition. in the because want the than to the Airbnb our the just to

a opportunities myriad there's that of of think we partnership. So

ROI Dubai, acquisitions. bar for We've of be to a we're for number going high -- we're the very a done in in to acquisitions Now have going past.

obviously, have thoughtful to order our in the acquisitions, currency and the of free going flow. and free of flow, probably very be billion to $X.X prioritization. always then absolutely going successful. We to that Some then partner buy it's generated stock cash our build, been but with have make very, be we're And cash very have we cash of

Operator

line ISI. Our Evercore from of next Mahaney question comes from Mark the

Mark Stephen Mahaney

take Let shareholder questions. try X about your me There's letter discussion in some rates.

last I forward? relatively pattern rates actually Just you've -- change there forward that years. And you really take a then Is in expand in the going I ability and will in rates Is change don't couple or any have would going -- talked about why Asia. go Brian, been reason won't there that, got reason understand secondly, of to the momentum consistent to And up? think know Korea. that the takes

tough limit. that relatively China companies seems to there. internet try a be of market a it's seems been off Asia And to there's generally lot -- expand like

I a So more know bit just grounds there's I talk but add China, wanted why optimism region. through to question. more about Asia you little than a to that ask to And see for that lot in just

Brian Chesky

why Mark, Dave then don't with take yes, I will rate. [Indiscernible's] and take go

no Internet mean struggled that doubt So Asia. companies in have

China, in inbound in not China domestic we think they in an and I particular, struggled longer. business, business do have any

in stories is Although, of company obviously, lot that well other countries doing Asia. there's a in

global I network. travel know, So we're let me just Airbnb The why, talk about as is unique. why think is that reason you a

to And get were on And so to then in going you're Germany you're Japanese homes go? want platform. not not have XX% to want platform to our you're You're and a go probably probably hotel, stay you Nights global to to to a a use going stay happen. Japan, the Japan want if in going are Japanese and to platform, would a you German and Japanese the cross-border. going you reason And if in platform who platform. Germany of don't going from that and that not to because is to Booked

one that not market, it's entered. so of to And as a in well a about country a the that we've And seems single global noticed think network. things this we every regional global is work is network, we've everybody

Latin underpenetrated. I'd in of is has very, and the And about were course, And that And America, example. in and we more will there well? work also, say this younger other older Korea to is is thing the thing cohort. And Peru people the the then, big have young success an was tend Latin other that very been of gravitate there's than the Now generally Brazil, for North quickly. America America. a population question, And market, well, massively phenomenal. just to grown emerging Ecuador, Asia We than is question a population we know Europe Airbnb --

other hotel, effects think that the mobile they're network the little think Airbnb. travel cross-border might strength every time. are ASA of So will strong where be to reasons amount all young, in Dave? bit in that a than Asia there's cross-border are fact Airbnb a are more I the region really no just just predisposed that book take any be why -- It going I applications different not the to people of network

David Stephenson

take up rates, they consistent. should a in be Mark, reason then, on be And of There's no going terms should no, kind basis. why Yes. of real there time-adjusted

pricing GBV of We adjust not a changed our the materially have as percentage you for timing. when

revenue mentioned So In that as cross-currency rate testing earlier fees, major but count the the fees QX, again, shouldn't year. gross timing. is booking to we be in as that timing, largely implied value QX coming we going expansion call, are of revenue take little more but a the a over this to largely right, to higher, you due Easter that's the due in

for driving services term, excited incremental with that longer drive about and revenue revenue am and now ability the incremental I So to experiences opportunity margin. and our

time. longer a of period over So

in change real will there's margin basis east. But no services a time-adjusted absolutely our experiences. towards term, on think I the here come from expansion hosting and guest short

Operator

the comes line from Redburn, next [Operator Atlantic. Instructions] of Brignall Your question Alex from

Alex Brignall

on First guide. QX just the one be would

X% the the one you're expansion on of is trying which X% understand obviously comment it X% take rates timing, like extra But comment on Just revenues. the more just be than Easter there's rate revenue. higher seems notably what is because which to to implying on would take to X%

immaterial. into you more is bit to one, it a have something that like now have there which in the is that on you're terms the can it pace terms but relatively means out you the be another back detail of that to nights. expanding, It its chance of that if comment, to presumably, and contribution sounds on in that little it's what rates, will currency. Do of Is be the obviously, you're going Dave, So you to fantastic, amount is cross fee, with. second And it? consumers. going saying then just add rate it the take the but room just you friction And to take pay not not that last your it's lever displayed test feeds that when where people an expect

David Stephenson

Yes.

QX areas. X the are say rate double expansion The why there because reason there's hit. in So is take we a

timing, the and you to You revenue due the from gross QX. value booking to decreased increased that shifts have in have QX QX

gross booking fees, over some increased both booking period amount, by greater expansion say, XXX points, revenue you of and values. decreased the you gross revenue So get in and that XXX values to basis then

guidance -- impact We'll is don't I step be they back way. of majority you country a Yes, to actually charge understand demand platforms or the it's cross that if the currency, the we that mean capability April. have, premium what vast be overall. why it, we're for. of give unique going that's in launching need So other cross to terms to in tough. either substantial a We to

for about that thoughtful we're of will on benefit to make but we this impact no mindful cost. incremental we has away be giving that largely And terms been the -- the and of sure we'll demand. were we've and choose, just it So monitoring capability in we adjusting fee if so overall

Operator

the end closing will have remarks. our some over Mr. for back I question-and-answer turn the of We reached to session. Brian now call Chesky

Brian Chesky

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

And Just what to accomplish to we've cash cash free and strong another represents I'm of to really higher. was income proud year, flow revenue QX $X.X billion, was margin $X.X net quarter. able billion. adjusted recap, been were to flow there's XX% this, incredibly trailing and come. past course, XX%. Adjusted Revenue records more of and of EBITDA at both XX-month our this a free

of more the Thank all throughout much. chapter you a beginning forward I look sharing the new and marks XXXX have for to year. You very Airbnb,

Lloyd Walmsley

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

disconnect. now You may

Airbnb (ABNB) 13 Feb 242023 Q4 Earnings call transcript