Airbnb (ABNB) 17 Jun 212021 Q4 Earnings call transcript

Welcome everyone. It’s Brent Thill from Jefferies.

We’re really happy to have with us today Dave Stephenson from Airbnb. Dave has been CFO for over 2.5 years. Prior to that time, he had spent almost two decades at Amazon, almost a decade at P&G. your perspective Dave the appreciate really time on and story. We in your may think, you to at, all the feeling you think I bit happening? be and know, shape a what's recovery global the frame know, we're a about, high just level, market? you would better into spending And on of we're curious everyone world about wandering just the I of the sense time you're perspective seeing, from what just and travel kick back where little road, on the off, give us how

That's great. Thanks, Brent.

nearby. travel a in that but we're world, the really You demand for the are but And wanting U.S. know, trends they seeing clearly seeing around is have to locales U.S. the connect a on travel are in business you we've that of is back. all rebound our And family parts kind since seen home, of just in those other Europe strong a And know, friends. than to in And, of to of you in working travel. at stuck to world. back with the come just beginning know, the faster much month travel what of been, starting We're is increases growth year kind seeing to lot the really and every people especially and the we're globally of year. ready we've seen demand, domestically, seen what and we've rebound Zooms

Europe. in about especially we're optimistic the rebound, you in, know, we're the the Obviously, seeing travel, U.S. we're so, optimistic about seeing in And obviously travel

largest in continue and travel, more allow people seen many the the to see travel so, of especially believe going unlock rebounds that And ever to in we're to we’ve on that history. continue we progress to we if Europe, borders

things be better you're in to starting of Canada, are what's pulling specifically? even It has U.S. the look when know, like everything coming what out, us you some of kind news seems I seeing have back to how on recovery other the you you we're don't give to do ease at Europe, what just of even the just kind in world seems Yeah, kind maybe barometer, little of to it really to, the felt fine frame of thread and starting be? a, a room parts more we know until Europe much if full think the a a of you had best way bit, simple would and sense

business be perfectly what end you the think I'm it's the forecast thoughtful levels, results to we our well year, XXXX, hard growing month than Yeah, the the to about predict know, up overall given prior. I the is how Europe single trying every strong performance. U.S. know, you real future, of our our in if trying future, seen being strength to the we've last XXXX unpredictability and above in month above better Obviously, doing

open. half So, mean, depends And whether downs. the there the on not I very the stay just any it about lock or back borders optimistic we're further aren't other of year.

U.S. should we their in of here America still are Asia Latin a have know, You relative year lagging the strong the globally. back rebounds half and to Europe. recovery in and

mean About XX for in most three what company? your the years, weeks ago, service you to update comprehensive announced the this does

the over Airbnb now, people functionalities to that. of are that to we upgrades has when they're service they're dates with the – are making way hosts means wanting traveling. our the focused are are core that I we right. locations Things and really finding sure our they we or features supporting traveling give also that on in that that know, do XXX either the but they're These you sort decade, enable basically we're think willing guests to refine And that, like, it travel. more the really taking last that created features building it's and are that flexible are guests

feature for instead a like a to dates, find fixed month-long date searching of guests. real getaway a actually or flexible weekend a can you a stay. vacation that's on that where So, our week-long We or search benefit

their They flexible in the specific is them. get exact to are with people they sometimes friends want family. out, they And to want also critical want location their less just more their to to destinations. and be travel, And

another that's so we've And that feature out. building been

finish that doing people and them of is flexibility the the the are are just So, and blurring then improving of we're increasing. building that a travel as service is and finding helpful living finding we're of core fit Airbnb, are lot what functionalities on to

questions I'll if can David. of the those from clients I've you me and bthill@jeffers.com and bring has anyone One up at questions, gotten again email in the with any conversation questions

rising Airbnb, back are things, accommodations many you thinking we hotels the other incorporating other how in capture go Many parts about go are a have hotel trip? going to not or how on trip with effectively to As forms we of to this or know you if incorporate the rebound experience? and the and of you trips air to overall other you're perfect ask, acceptance of

and is experiences the world. to Airbnb providing on stays know, guests focused You hosted around

last, things match tens guests. with the unique over one know, millions of done unique you and know, is of of millions that the experiences well of plus we've decade stays amazingly to You

with, a we night, [indiscernible] actually know, continuing is to And you to end individuals, great for a a and that shared we're are up parties, $XX,XXX range so match know, able from, thing that been great families, stays we're be you you will. travel. to those two business wide the we’re for work we know, up great room on we've for of probably Because

so, how people wide for of can And have array travel. this incredibly we opportunities

that that to support you from might the And want might which talked All we and tens do element person of needs, perfect about sure is problem, perfect are need a of every to so of unique trying we're rather supply able kind back than harder trip, features which millions a trying end that end for millions a are on the with have any of matching to to to make those trip to May. of we trip this many goes to those up guests. match oriented in launching of around functionalities better up and unique job basis

can you strong so this want You've how and go strategy? your or through actually you can you walk think about experiences had business, a Kayak you to rock means, a important when in to put the Lake experiences accommodation tour, balancer what the very is and want Tahoe you overall on you that

I their different an think hosted think you of event, right. with time augments their experiences it And can – Airbnb so all do. and hosting the like things and It uniqueness and is activity. in people it's the group individual to we a supports emphasizing for expertise sharing overall us that really quintessential ultimate individual the the individual of

of so of person completely then to very experiences kind been shut team significantly the business bullish down the the in midst on COVID. you COVID you making term, COVID to there's we're online while for completely proud experiences. and and know, the impacted know, of because, prior virtually And was long during really in pivoting I it’s obviously available

a setting many and their of the I to us. to actually the will be you was time, lot experiences a excited continue virtual thought enable provide experience very for powerful now to of back hosts same and I'm grow know, a coming is And some person, to of what very in force. in So, significant that are that experiences and over creative business

a the we'll got questions email we've Dave, those clients from couple on first. go hotline, to

somebody questions One that the had to company to the do interesting you cancel protect you to of was, initiatives when expect resume?

we're investments very of expansion to know, about judicious going you of the Yeah, core. outside our be incremental

experience different hosted is of unique the business barely to we us core And have core And through importance on we gives in the the pandemic, massive. we've just that's individually what have and surface focus know that that scratched really clarified of that us and us makes we core. You opportunity strength. and clarified that this stays

extent kind where areas we so, while business, be, are will you will which specific one a to offering And about with much individual way might, opportunities the ancillary be like, could than and we hosting. things is around in that do we would in the else. so unique And more year, core cut back time a And we and that is even generic that add-on until which that this, in anywhere would of invest more the core again. it think of might to to be generic, until would that transportation, would that rather way [indiscernible], do it be very we holistic found a Airbnb it the a we along we know, there we many that piece, last doing

client just, to from How seen a mitigate Another overhang? is widespread to, we've you is restrictions in of risk? restrictions moving Airbnb this are this Barcelona, places in question more like on regulation, you relates a know,

rent, these this You that – collected these relationship the the cities tourism been know, cities, reset in had, revenue. of over taxes, stronger. cities, cities We've right actually a are hurting crisis tax really hundreds that been actually has and with finding recover many to we're many we've been decrease been a it's bit of help them that has know, the billion our for travel now to world moment they've working tourist and around COVID related you frankly, $X.X for never of

we're like the that better their recover is, want marketing have last be and communities portal, to so portal, which launched in we organizations like the to work we has and them with they And with communicate which to with Airbnb a world recover. doing destination to be to activities things I ways cities enables doing continuing a understand that is And communities. what around Airbnb again, able the in to year, said, partner city XXX help partnerships the them

So, and are we see forward. how we positive kind actually going think has in crisis work this back to a step been where cities Airbnb way a time of with can able COVID

really front. I'm confident the So, regulatory on

you're places questions sign not the of the like you just One keeping lot you and the out of fall the of demand into are Zoom. how looked times up which fulfilling, of in of know, even a beyond want finding and for we've probably it other this demand, know, is to now, summer, many will accelerators, this a seems the that gotten, we great a us obviously, have journey places lot is there's is

know, So, of increasing an be walk right demand the can you the equation, the, about, supply get you what seems to know, environment? you're and through to you're you the doing thinking supply what how side and

U.S. constrained travel. around been, is you but the the kind very continued clearly strength as majority and the ready in majority all The optimistic the that in Again, the is of talked summer. we're have receive And world in guests non-urban, We're our vast of – of hosts beach you the have, know, kind the ready of we in in beyond inventory world a and Europe, earlier, incredible seeing our plenty XXXX we're still know, exception our to of area, and here open have relative about vast rebound. around of the nights, supply U.S. around hosts majority you available when countries the actually the actually locations the August and know, has world. have available they're to strengthening down in we quite rest obviously, maybe you been to nights The of know, world.

to things at So, recruit better we're one to both individual do continue to Airbnb them the hosts understand continue it host years, than this we've hosting. we're and we and of with anyone the for benefits is of to else, think by making going to done

obvious are of are the most You know, benefits some obviously economic the the benefits ones.

where in founded the like extra was them. of great know, environment in you to income you turn ways, when we're You and felt additional was to know, and kind And depths may for that are people to recession. many incomes. a have a individuals Airbnb at that great time time a And beneficial we earn they as some second of economically, recession, in the, to know, earn stress, we have a way economic second a hosting

for educate doing, we've their One about possible things coming educates of this to broad scale also doing and campaign the hosting. about marketing of just made that is what's campaign host been the we’re the about guests great but by benefits hosts both with stays, Airbnb

talked then So, the we with many the experienced becoming been potential guests core we're and improvements about dollars, spend provide matching actually easier actually that and to earlier, marketing And more service, powerful. that Airbnb, it more being when market make up hosts we like them support to of just understand we able easier for improvements our these it at act more to make end just intuitive, host Make we And simpler, we've hosts. the to and of to making the super both things host. straightforward, up prospective hosts. actually more then that new hosts XXX

all to to those we're were supply. doing so things the And continue unlock

– forward. feel improvements business very our with terms confident that that to I'm we’ll of in the going So, good supply, in know, making our and current we're – grow, very available continue about situation you all I'm of

or profitability how growth the maybe long-term think look question it, I balance and you kind scale? Another that around, what you think of client think but question if and margin about short-term in was profile you and CAGR, this how of can do might the bottom ultimately, that reframe to and just of about build know does difficult and think you long-term you of answer, the as continue like, kind to line you the be answer how that, long-term kind that

get earlier demonstrated durable So, some margins I as with that to fixed here EBITDA to time. last and And about believe we our think, more actually, going QX significant can significantly progress We adding really we've Airbnb. fixed reduce to very XX% And back in be profitability. challenging growth have to more profitability. in goal QX, sustainable over judicious overall in than We talked we costs is are our choices costs. we made to year,

cost on our fixed we'll grow in will gain that. and variable improvement. We lower revenue progress than leverage made We've cost substantial

costs. from of making So, payments, we're cost variable nice costs], everything in costs, our improvements up the [committee support P&L, down infrastructure and

we well. this including margins, of the have Airbnb. so for And that not in XX% that's lead growth opportunities to and EBITDA top activities all trajectory double-digit monetization And more as those might line do or while durable having we future even that business can

you And very want world. said, a country know, in have are the and player we huge of that person opportunity to of and have kind a in As grow. stay we're that any a experience any we we around that small huge market might basis,

for our that And very also demonstrating we extended not solid, but So, in kind actually period I'm confident we excited time, that I'm can results, show of double-digit grow manner in both could said, of do both I while about QX just a actually and profitability. it what like an financial do, in the talk we could QX.

When about describe some there drill operational just you bring really what actually to question and are most big for up cost think scale areas structure, was you the finding like, the getting could another there buckets where forward? Are you you're efficiency? that better in, going

approach. as we're to been spent about Well, as very our search probably we Have more expense search we not marketing more spend, absolute one the XXXX. to marketing, dependent return single change, expectation costs, we overall centric, the growing revenue that good engine much percentage a fixed grow, on we're shifted leverage, there. Obviously, going talked get be a basically marketing fixed about marketing and reduction that feel of leverage on increase a as quickly in of has great big – significantly have less bar and the engine brand on had most approach the cost we

U.S. brand. we to global I host. even It's the largely world, don't it's our our to We brand. brand to brands we as not to And we Here XX% of a have in that global feed, European feed a benefit mouth of a number one a brand. have that's other was sub go also brand or market And over It's It's one said, we there. of in actually the brand. market double get traffic can And not when because a direct Airbnb, guests, we truly of QX, Airbnb. the strength have of unpaid.

our things material Those for continue you leads side, of payments, on journeys. I I like And our on rest journey. benefits Like And you the those make to know, part those community are those was variable are long that I that's of the metronomic costs, line. working to then costs, that's yield, of think infrastructure just ending a know, costs, improvement activities. all you But know, and, you Amazon's in consumer to global can support our bottom time. never been marketing think all over So And head a finance will improvement. of business, side. cost great efficiency the the

not, are they efforts rather at changes, are getting just ongoing step are improvement. of those muscle the variable not better areas So, of and usually cost those improvement stronger

competitive to others, a Expedia, There you got you've to brands, you've questions handful you how build Jackson like you got understand if moat. out if with outpost, if go Napa, beautiful at are Hole, just you've go of you And the look to got places. local VRBO

lot You've building there's hear are And a how out, your moat got, others you in? know, moving everyone that to different over to you the love differentiate would potential what's you're really of competitors. going

about have are single you them. Hole And of to all the next brand only to said, small Hole, in brand. Jackson if every that go brands, because travel next a, time or you brand Florida, know, next of like time time, the time Jackson think kind have you these to you there know, travel some you that you France And try you same individual hosted scale, or a strength can think you I very it's to shared travel to that why you key Hole. can is to one we and to we're for. the provide I this think we can't known don't Jackson stays, to I do when unique rooms. what you going you or Airbnb can housing think back I people that know, that's you the know, That's focus to supplies travel come your supply. same want trip mean, it individual unique having actually are Greece one. this have don't I anyone We to Airbnb, and where, we to unless first provide these and Asia, Well, feed, With small sub on is activities in

luxury hotels, You villas, we know, and boutique anything. have like

used to needs because continue better continue as get matchup cases, be business, If travel you will wife better or job with travel is they're an your to your individual to on family things can better can romantic the depending be with come to a and it those do you those able understand your for better, better match the trying then structured trip on do we Airbnb. but unstructured to of with a And we we Airbnb to even different at than – up, the or traveler that of And data like and us we're own want you. individual to you and want with think getaway both a particular to that the that to I of our strength a travel event, we said, for is want what our anyone, of one to will continue need data kind think for do family provide to that give taking. I

but hear drilling love just how know, China, would I this your you? to you strategy mentioned, into region you think know, still to you there somewhat of and everyone is kind important is lagging, Asia

is of The important important for China from outbound business business China. us. is part the an that traveler most

traveling almost the of Chinese is moment. that the elsewhere obviously, zero significant at number around So, travelers world,

borders and it that And is part that the have so important us. of business significantly we're and back, part that until reopen we'll will be depressed. travel come But again, for confident we

of they to of in and world, we that over One come it actually done own time business this China outbound have brand. Again, we back for would to traveling country. power the Airbnb’s network their this look of the Chinese in the goes things global when the saw that we've is, and of strength around travelers home back then the

business. traveling actually So, domestic doing now. levels in domestic we And [towards started of travelers XXXX] a Chinese that right back is building China is and locally quite business well

of just to up So, part it's borders the the important open future. again travelers waiting for for and to travel We're Chinese allowing business again.

about in that easy for an that share to client developed frame more market is another you metric share? is there another at your or overall share Dave, is maybe asking around question, any just way the your there important, look is, thoughts markets, you

are accommodate Yeah, any, sure to and be we I that again, make kind trying we mean, I think of can stay.

more of that especially we're that saw really, penetrate how in kind Latin can America stages just And on you now in people not hospitality, kind longer-term so the about When right? vacation big of even is and I types And long Asia. business focused accommodation a think stays. have. trip, of we of broadly A the might opportunity, stay, all traditional our think area, we of it's part any actually

were to days of of now, actually even our of nights And nights You XX% XX know, COVID of QX prior in XX were or days or longer. stays longer. our XX%

used traditional So, a like totally hospitality a what maybe online this might case agent travel an is or than see. different

know, per average, be, booking know, our are X.X you know, going to so. You or you nights

[people, increase, think continues of that that's and that travel we as going be flexibility] to for a the think Airbnb. so, the a and And living increase, idea be will to and benefit tailwind we blurring

my they if the is Another a you the just have would were one, interesting are home whether an an and revolves and the you meter, kids loud, that have and ready, hosts to certain really know, volume easier homes they the to client, primary of the makes you from back taking those could partner, house, could they get this things, Apple, you And a And around, my view with too kind get a question – ecosystem second it alert, There you a get know, go ecosystem, off, Apple, in that to enable. goes would meter volume know, kind is, of think risk the airlocks, do do an competition? do share? the you partners, know, home, all the the it just of into there's yelling been that the of infrastructure do have getting around I of kind that kids or to how of this? more feel – that you you it's them which are partner you or question they're you question leverage was know, –

You know, I'm actually that really, I smart think think there's we we have home I than lagged you in partnerships. mean, keyless and can know could do that under more penetrated much much there can with, in do more that these there's know, activities, opportunity. I you more much do entry, we we with, are

we're very the think on – long-term. so bullish I I'm actually

over I to are this home. would actual hosts part to can think that and valuable. Amazon, of areas find Google, be them the important that guests want incremental I that revenue all things like for time. opportunity And some Apple, smarter company, these us have competition, unlock work And be think really I I drivers really with like the we because to

– I I great think long it's opportunity us. that go area, for we So, ways think we're a really but have in to

you get so many business, Jamie let paid, this to get to the be? last some structure an well, this, know, - just in the you your for question about, the wherever comments What you if to on the perspective CEOs thing. you the do going back your pretty to happening? are And CEO of you they guys? How return we've Stanley saying employees or say, give impact of think want day be San around start Dimon Morgan the and the what's office? know, of rest same opportunity you the officer, your Are you're saying Another the the in world running going does the on recovery strong return? not Francisco to from How heard us

we all You actually our employees knowledge of to how about slower know, claim we're in work. trying have perfect should being

everyone's office. you're that have kind Facebook think and like, of to even I think or or that I backtrack you and later. the few work companies, are said at back have least a mean, know, two the that to people thing anywhere. mentioned having you companies you can are that earlier, a finding Apple, one year, four declaring – in There remotely Google, I others, that some weeks from of what adjust other

And kind so flexible. of incrementally that being

in be remote. to that So, actually we don't have at we nor a We're more be for likely in we completely But hybrid will our be we're yet, policies specific be the we've you we don't going company all will flexible, environment, office, outlined to we not taking knowledge. because going our how to is are we exactly know operate want perfect try to vein, time, that still declare, be determined. to more

talent. going we in world. that to to best our the going flexibility attract are do employees to we're going exactly be continue to that that one Now, way to a in we the know What And play provide employees the knows want more war going to flexibility, expect for all there's is so to out. think no which best that continue when I demand the is can

would wave are thing, and maybe Maybe the open. you back the over really, you the getting story, magic pen, give magic you not can things we unlock wand show say what would those be? can be know two or about promise the would items now, if one top many it Dave, wand it's you would getting when traveler it's real the any you there, one know, that's you constraint borders out, my platform, activity, you say global the that really your what you maybe the can think can but global of this know, traveler

our many we in we I'm the returned, we talked travel COVID have what and it kind have about cross-border, business, XX% IPO environments. levels, through to during even QX No, above about XX%. our crisis. was QX thrive we've can and you think though resilient of know, it that's withstand we We're XXXX that right, of has both a the show results, very now and cross-border different really I business pre-COVID and and continued now revenue And of it's – proud showing that show through plus

business know, down And that's You substantially. strength. yeah, historic has our been been [Ermine]

And that a extended us. individual to day to to world, so business, you rebound what a rebounding by and flexible, to accelerate. back that are know, momentum to days flexible major those even if but we're call flexible a Zoom that people [XXXX these trend going when of think as and by important spend in be flexibility, family cross-border benefit just tailwinds much to we'll about that each weekend then before. taking, take seen [Ermine] family XX for I to the take a to of incremental we've more that's then levels], can more vary will one incredible trends Friday, you those four these somewhere. see and People all great means they more think we're And know, incremental on be the and is and year they How forward. even strengths an they're around we trip a are will willing areas, And see continue be us, we benefit or going positive talked can were to kind in we than because may trips more seeing living, expect, of and expected this that two without good our be longer, think going travel and

wand continue of to So, know, more our you vaccinations, the unlocking, urban and you more borders to and all cross-border more magic we've thrive. top returning had, on the will business benefits other know, is,

success you Dave. appreciate looking the the so Congrats really Thanks all in and we Well, we're taking to the touch. great. on forward time share stay story. to That's much

the That's conversation. Enjoyed you time. for great. Thank the

everyone. care, Take

Bye, bye. Take care.