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Amid IPO Plans, Airbnb Revenue Fell 67% In Q2 As Losses Piled Up: Report

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Amid IPO Plans, Airbnb Revenue Fell 67% In Q2 As Losses Piled Up: Report

Airbnb Inc’s revenues declined and losses piled up in the second quarter, as the home-rental company’s bookings sagged, Bloomberg reported Wednesday.

What Happened

The San Francisco-based company’s revenues fell to $335 million in the quarter ended June, a drop of 67%  from the $1billion it reported in the same period last year, according to Bloomberg.

The company incurred a loss before interest, taxes, depreciation, and amortization of $400 million, while in the preceding quarter it had posted an adjusted loss of $341 million. Bookings fell by 30% in June compared to a year earlier, and 70% in May, people familiar with the numbers told Bloomberg. 

Airbnb reportedly began seeing some indications of a recovery towards the end of the quarter after being battered by the COVID-19 pandemic.

More nights were said to be booked with the rental marketplace in the United States between May 17 and June 3 than in the same period in 2019, as domestic travel rebounded.

Why It Matters

The firm was planning to commence its listing process with the United States Securities and Exchange Commission on March 31, but those plans were halted due to the coronavirus crisis, as the company was left grappling with $1 billion in cancellations, Bloomberg noted. 

Airbnb plans to file for its IPO in August and go public before the end of 2020, according to the Wall Street Journal.  Morgan Stanely (NYSE: MS) and Goldman Sachs Group Inc (NYSE: GS) are said to be serving as underwriters for the offering

It is not certain if the vacation-home-rental firm will pursue a direct listing, or merge with a special purpose acquisition company, to go public.

 

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