Business

Airbnb, Inc. (the “Company” or “Airbnb”) was incorporated in Delaware in June 2008 and is headquartered in San Francisco, California. The Company operates a global platform for unique stays and experiences. The Company’s marketplace model connects Hosts and guests (collectively referred to as “customers”) online or through mobile devices to book spaces and experiences around the world.

Asset Structure Analysis

Airbnb reported total assets of $20.6 billon and $16 billion in 2023 and in 2022, respectively.

Cash and cash equivalents were $6.87 billion as of December 31,2023.

Short-term investments were $3.2 billion as of December 31,2023.

The combined of cash, cash equivalents and short-term investments is around $10 billion, which consist of 48.5% of total assets($20.6 billion in 2023). This rate is very high.

Total current assets were $16.5 billion, accounting for 80% of total assets as of December 31,2023.

Liquidity and Solvency Analysis

Total current liabilities were approximately $10 billion as of December 31, 2023.

We could see that the current ratio is 1.65: 1.

Airbnb’ s liquidity is  very strong,  with cash reserves and short-investments.

Aribnb’ s total liabilities were $12.5 billion as of December 31, 2023.

The debt ratio was 68% in 2023.

The liquidity and solvency was very strong.

Profitability Analysis

Airbnb reported revenue of  $6 billion, $8.4 billion and $10 billion in 2021, in 2022 and in 2023, respectively.

The growth rate was 40% and 19% for 2022 and for 2023.

The gross profit margin was 80%, 82% and 83% for 2021, for 2022 and for 2023, respectively.

The gross profit margin is very stable.

Net income was $-0.35 billion, $1.9 billion and $4.8 billion in 2021, in 2022 and in 2023, respectively.

Why did the net profit skyrocket in 2023?

Because provision for income taxes was offset by total net deferred assets.

In 2023, total current provision for income taxes was $0.185 billion, while total deferred provision for income taxes was $2.875 billion.

Provision for income taxes got a loss of $2.69 billion in 2023.

 The profit margin before income taxes was 24% and 21% in 2022 and in 2023, respectively.

General and administrative surged by $1.05 billion or 110% to $2 billion in 2023, up from $0.95 billion in 2022, primarily due to an increase of $991 million related to business and operational taxes, the majority of which is non-recurring.

Cash Flow Analysis

Airbnb reported net cash provided by operating activities of $2.3 billion, $3.4 billion and $3.88 billion in 2021, in 2022 and in 2023, respectively.

Basically, Aribnb has never had any capital expenditure in the past three years.

Airbnb’ s free cash flow was $3.4 billion and $3.8 billion in 2022 and in 2023, respectively.

The number of free cash flow has been more than the number of profit before income taxes.

Repurchase of common stock was $1.5 billion and $2.25 billon in 2022 and in 2023, respectively.

Aribnb returned shareholders by repurchasing stock, but not by paying dividends.

Summary

We reckon that Airbnb is worth $70 billion or $80 billion.