Airbnb Profits Before Going Public | Free Press

In financial markets, Airbnb’s IPO was long traded as the most spectacular US premiere in 2020, then the Corona crisis intervened. Meanwhile, the business has recovered quite well and the hosting services platform still dares to go public.

New York / San Francisco (dpa) – Apartment broker Airbnb is targeting a rare quarterly profit on the stock market. In the last quarter, the company earned 219 million dollars (185 million euros), as is clear from its price.

However, in the nine months to the end of September, Airbnb racked up losses of just under $ 697 million.

The corona pandemic sometimes crippled business to such an extent that big questions suddenly arose behind the planned 2020 IPO. How precarious the situation was in the meantime became apparent from the financial data now released. In March and April, for example, there were more cancellations than reservations on the platform: hundreds of millions of dollars had to be refunded.

In May, Airbnb responded with drastic staff cuts. According to an internal memo from the company’s founder and CEO Brian Chesky, who was unanimously quoted by the US media, about a quarter of the workforce was to be laid off. The crisis crippled tourism and Airbnb was hit hard, Chesky said in the letter to employees.

Meanwhile, the situation has recovered significantly, even if the new corona waves are already clouding the trading outlook. After there was a 72 percent drop in sales compared to a year earlier in the second quarter, sales in the most recent quarter fell just under 19 percent to $ 1.3 billion. However, the pandemic is likely to continue to affect business.

As is common with companies with uncertain earnings prospects, Airbnb also warns in the prospectus: “We may never be able to make a profit.” Such risk warnings are quite common before going public, however many other tech companies such as Twitter, Uber, Lyft, the operator of Snapchat Snap, or the photo platform Pinterest also had them in their brochures.

It’s unclear from the application when exactly Airbnb’s IPO will take place and how many shares will be offered at what price. What is certain is that the papers will be listed this year on the Nasdaq New York Stock Exchange under the abbreviation of “ABNB.” Airbnb’s debut has long been anticipated in financial markets.