Airbnb posted strong second quarter results and anticipates ongrowing demand through the end of the year
From a growth perspective, Airbnb exceeded 103 million Nights and Experiences Booked, the largest quarterly number ever, and generated $2.1 billion in revenue, growing 58% year-over-year and 73% larger than in Q2 2019.From a profitability perspective, the company had the most profitable Q2 ever with net income of $379 million—a nearly $700 million improvement from Q2 2019.
It also generated $795 million of FCF in the quarter—a nearly $1.1 billion improvement from the $(263) million FCF from the depths of the pandemic two years ago.
Q2 2022 Financial Results
• Q2 revenue of $2.1 billion grew 58% year over year. It also significantly exceeded Q2 2019 revenue by 73%. The strong revenue growth was driven by the combination of growth in Nights and Experiences Booked, and continued strength in average daily rates.
• Q2 net income of $379 million was the most profitable second quarter. Net income improved by $676 million compared to Q2 2019 primarily due to revenue growth and expense discipline. In Q2 2022, Airbnb delivered a net profit margin of 18%, up from (5)% in Q2 2021 and (25)% in 2019, and $1.2 billion of net income in the last twelve months.
• Q2 Adjusted EBITDA of $711 million was more than triple Q2 2021. Adjusted EBITDA in Q2 2022 was a significant improvement from a loss in Q2 2019. Adjusted EBITDA margin was 34% for Q2 2022, up from 16% in Q2 2021 and (4)% in Q2 2019.
• Guest demand on Airbnb: Q2 2022 Nights and Experiences Booked of 103.7 million marked the highest quarterly number ever, up 24% compared to Q2 2019, despite macroeconomic uncertainties.
• Guests continue to return to cities and cross borders. Gross nights booked to high-density urban areas in Q2 2022 accelerated from Q1 2022, and once again exceeded pre-pandemic levels.
• Guests continue to stay longer on Airbnb. In Q2 2022, long-term stays of 28 days or more remained fastest-growing category by trip length compared to 2019. Long-term stays increased nearly 25% from a year ago and by almost 90% from Q2 2019.
North America remained strong with Nights and Experiences Booked in Q2 increasing 37% above the level achieved in the same quarter of 2019, primarily driven by the U.S.
In EMEA, Nights and Experiences Booked were once again above pre-pandemic Q2 2019 levels. Despite the continued war in Ukraine, Nights and Experiences Booked experienced sequential growth, up by 11% compared to Q1 2022 and 26% compared to Q2 2019.
In Latin America, Nights and Experiences Booked were 42% higher than Q2 2021 and 64% higher than Q2 2019, with continued resilience in certain countries, such as Brazil and Mexico, where both domestic and inbound cross-border travel continued to strengthen.
In Asia Pacific, Nights and Experiences Booked remained depressed compared to Q2 2019 as the region has historically been more reliant on cross-border travel than other regions.