Airbnb is poised to debut in the public market this year

Airbnb is poised to debut in the public market this year

Airbnb filed for an IPO on Monday, saying it generated $ 219 million in third-quarter revenue on $ 1.34 billion in revenue. For comparison, in the same quarter last year, profit was $ 227 million..

The first half of 2020 hasn’t been positive for Airbnb, whose platform is used to find and book properties in 220 countries and regions around the world.. The company said it had a net loss of $ 916 million as of June 30.

The planned IPO is taking place against the backdrop of a newly exacerbated coronavirus pandemic. IN USA there are already more than 11 million cases of infection. The Centers for Disease Control and Prevention Again Advises the Population Not to Leave Their houses without the need.

«The fourth quarter of 2020 saw another wave of Covid-19 infections emerge. We expect bookings to drop again», – said a company representative.

Airbnb plans to list on the Nasdaq under the ticker «ABNB».

In September 2019, Airbnb announced that it is planning a public offering. Almost a year later, in August 2020, confidential documents of the US Securities and Exchange Commission (SEC) were presented for an IPO, which finally convinced investors of the company’s intentions to go public, despite the fact that the pandemic went on a roller coaster. the tourist services market.

Founded in 2008 as Airbed & Breakfast Brian Chesky (Brian Chesky), Joe Gebbia (Joe Gebbia) and Nathan Blecharczyk (Nathan Blecharczyk), Airbnb revolutionized the hotel industry by popularizing the once-unthinkable idea of ​​renting out the homes of strangers. Since then, it has expanded its offerings to include full-fledged apartments, houses and hotels.. One of the most successful private startups in the world, Airbnb at some point reached a valuation of $ 31 billion.

The ongoing pandemic has shaken the company’s business and many homeowners who work with her. In May, CEO Brian Chesky told employees that the business «badly hurt», and expected annual revenue will be less than half of what the company earned in 2019.

Airbnb reports $ 2.5 billion in revenue in the first nine months of 2020, up from $ 3.7 billion in the same period in 2019. The total revenue of the company in 2019 was $ 4.8 billion.

Chesky told CNN in June that he still intends to make his debut placement on Wall Street.. 

«Our plans are in force. I can’t tell you the exact date of placement, but it will take place», – he said.

The company’s business was hit hardest by the pandemic in March and April, when the portal had more cancellations than bookings.. However, the picture has improved in recent months thanks to those using the platform for short-range travel.. 

«We believe the coronavirus pandemic has confirmed a person’s irresistible desire to travel. People are increasingly looking for travel options closer to home», – the company says.

Airbnb is poised to debut in the public market this year

Airbnb is one of the most anticipated public offerings in the tech sector this year.  Airbnb’s board of directors includes influential people such as the former CEO of American Express Kenneth Chenot (Kenneth Chenault) and former Pixar CEO Ann Mater (Ann Mather). It is worth noting that Chesky is also very familiar and, in which case, can seek advice from Warren Buffett (Warren Buffett), Bob Iger (Bob Iger) and Barack Obama (Barack Obama).

More recently, Airbnb battled misuse of rental properties for home parties. In August the company announced about a ban on all entertainment events, limiting the capacity to 16 people. During the pandemic, some cities temporarily stopped using the platform, and the owners were forced to freeze their leases for several months..

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