Airbnb (ABNB) 6 Aug 242024 Q2 Earnings call transcript

[Audio Gap] [Operator Instructions] As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of Airbnb's website following this call. I will now hand the call over to Angela Yang, Director of Investor Relations. Please go ahead.

Good afternoon, and welcome to Airbnb's Second Quarter of 2024 Earnings Call. Thank you for joining us today.

we Chief Co-Founder Financial today, Chesky; CEO, call our and Officer, the have and Airbnb's Brian On Ellie Martz. issued for of we results today, a with letter Earlier our and commentary our XXXX. quarter second shareholder financial These of section Investor Airbnb's. also items posted were the Relations on

of call, remainder make spend we'll Q&A. the opening remarks on During then and brief the time

in of forward-looking implied these no obligation I factors you factors. circumstances. Commission. and risks those involve that on we everyone turn and to shareholder like remind undertake Exchange that results letter Actual most it factors Before that uncertainties. forward-looking to variety expressed urge we call the the be or and update over due are statements making may this forward-looking would a subsequent from in of this to to you and a call Securities to described number reflect We in statements remind consider Brian, our I materially statements contained information recent under to on our filings will These differ the with events or

performance. financial You With during non-GAAP will results. financial GAAP GAAP not to are measures statements intended to These aware I that our measures for future considered call, be Brian. to only the website. our call comparable this in the a are Relations the to measures. non-GAAP We be shareholder directly will posted Investor not provided be substitute pass letter that, guarantee discuss most of should some and we a should estimates these Also, reconciliations

million in XX% Airbnb. marked everyone, joining. experiences We booked. afternoon, $X.XX for had year-over-year Good billion. to QX right. increased another strong All thanks Revenue quarter for nights XXX and

net income flow. free Net generated $XXX billion $X million, and of we cash a income margin XX%, representing of was

as quarter. program. repurchase Our our had remaining our flow of QX, repurchase in million the of cash we our XX-month our And of $XXX free was $X.XX shares us authorization strong share ever. trailing allowed the cash And end billion, highest $X.X flow billion to total on

Now priorities, making during expanding mainstream, service make core. continue on progress are core perfecting again and X our strategic we hosting to beyond QX, our the which

each. So I'll a highlights few on share

Last also commitment just all we as been listings shared driven focused are QX, providing year, better host. quality the regions the in high-quality we're to raising continued high-quality we our hosting deliver to supply. April, We're that the guest million updated In X failed [indiscernible] mainstream. continue overall market BB. listings we as we'll traveling benefits our consistently our and hosting so it's over of quality to we've we XXX,XXX making raise on launching not can growth and [indiscernible] growing popular awareness ensuring that for listings around just meet tools Since and across First, surpassed of committed host We've by types. active supply, states. system expectations, last removed

in over the for launching guests This making service upgrades it years Second, best perfecting do initiatives and rolled of our past focused the remain better like reliable We major Airbnb. listing X guests. an makes overall out core which new features this. hundreds We've Airbnb on reliability for guest includes to we're more favorites, easy hosting service. find and to

policies clear made Now improved guest dozens led at XXX simplified and things since listings. smaller setup and booking maps, November, include more. much These nights launch, favorite last so have booked cancellation improved that over million seen like to login, -- usability changes and nights we've conversion. of also We've

And our excitingly, we continue tremendous we're we're finally, most Now we'll to progress, beyond never expanding commitment. made and going improving Airbnb, core. stop this perhaps

our core in drive growth by basis our booked QX, average. significantly on on growth In markets. of We gross markets an nights outperformed origin investing continue to underpenetrated expansion in markets

Our core to to category launch low-rise and playbook, Australia of are accommodation includes Airbnb Icons, of and in success global rollout U.S., marketing positioning expansion extraordinary product beyond is new [indiscernible] a due we markets, which France, and Canada. This the of experiences expanding the again, May. our more approach. that largely U.K., travel also Airbnb We're launched

Now on expand since offers XX coming nearly our years. be million the than understand in a offerings launch, combination that as more seen site. views we've people we will Helping icons of our Airbnb critical

to Now number looking business highlights. of we back positive saw a

on booking First, Airbnb the guests are increasingly app.

QX to believe approach websites mobile from optimize Nice and our downloads, is our our increased during app continued have we year-over-year. We XX% in app working. booked

comprise now and XX% booked, prior the bookings period. up these from total our is this nights on Now year XX% in

in our growth youngest bookings, of to platform first-time growth the to we're age in seen addition the see downloads highest our in and level continuing success in bookers of Now with mobile demographic.

see for Airbnb uniquely Airbnb Second, We're choose is guests more positioned events. continuing holidays special and events. to major for

saw week we The and trends Europe. represented example, ever North of week America, revenue of in X, highest July our in similar single for

this the Now booked in what through year. which than in QX Olympics, they anticipation of last double Paris time were more parent, were is nice

matches more saw to than Euro the average has increase year-over-year Additionally, the on recent cities XX% a meet in supply nights increased hosting during Cup Germany higher demand. booked. And in

unique where In spread listings really ago. a active neighborhoods to highlight do travel So no ability -- we have local year is QX no stay Paris to people there economic sorry. to and Airbnb's are XX% hotel, to events, by increase travelers in in these disperse they in in benefits what compared allowing

We is growth of focused huge growth, as on supply quality. Finally, improving made supply just remain strides Airbnb. supply on

try people quality, more we improve growth. As even we more Airbnb unlocking believe

We us have do help underway major this. to initiatives two

low-quality removing supply. we're First,

XXX,XXX of since shared I listings April over last removed we've year. earlier, As

our Airbnb. We XX% of results. Superhost, highlights, highest find by guests features top launched make easier we of to active find on the the best hosts highest-quality of XX% well top In Second, [indiscernible] some the it on and our in for stays increased QX, we're to These easy as X% listings making homes proud X%, We're eligible new show it saw Airbnb. listing homes also QX as quality managed as Airbnb. year-over-year. which

season. summer strength encouraged our also excitement Euro forward be by travel Now the and QX. Latin continues another which encouraged the Pacific, we're to the in and relative We've turning America to regions. fastest-growing And Cup. Olympics to We're by record Asia looking around

continuing we macroeconomic new incorporates term, seeing macro offset believe along trends. growth offerings. these are impact guests and transitory closely, shorter our the We're booking However, this U.S. our improving watching strategy demand lead and recent globally of might times service be less will, slowing outlook execute over signs trends. the any in trends our long with causing. And we're any pressures from QX some markets and introducing We growth to against penetrated by expanding strategy these

questions. So with forward look [indiscernible] answering to that, your

comes first from Ron your line the And with Instructions] Josey of Citi. [Operator question

trends UEFA seen expanding And sort bit question from a I everything tell core the service. a release, two, just and Guest America. little Olympics then us that's one. going with it else. a whatnot when North Icons those Post How strength summer and beyond please. winter about we maybe on. of what's your in you times the the and release, sit Can and Favorites, have last saw with and core we've Airbnb improvements lot release offsets with you across then Brian, throughout perfecting services that of on it, newer comments key bigger else, post of how does and And and slowing how are about helping more 'XX and -- these think lead everything when when tomorrow? the question coming we influence, the winter think call Airbnb to about

start Yes. Why take first you slowing I'll these one. when the And don't we about one times Ellie take seeing and the second trends. lead

absolutely. Yes,

seen So both the QX What of of trends for we and let year. was lead in XXXX. with we in what were little in bit me the basically QX double-click and a times the saw that lead since equivalent times begin terms QX. have

to strong shift there shrinking in very in in the terms really behavior times. the continues there is be any of times. we've lead seen of is we've a What timing of when So booking. in core recently lead that and growth particular, seen gas July, wasn't more And particular, shorter what of

of of same the anything seeing times. what those not lead longer from to weeks week now. So level in to a couple is from we're day strength same But next

Christmas. So X going Thanksgiving, you're for for booking what you're now, what months from

silver And factor some in COVID, terms say, overall the that seeing that booked trip Thanksgiving big right book we're trips. is that, softness times, for it additionally of appears some would several lining suspect And the to have terms is not I last that were and as the are we there saw times. lead to -- yet. those lead emerge so regard of necessarily in It's what consumers not it outlook in from would we a hesitancy we we Christmas, in it's time That terms provided. the that periods that that couple I of to would say the longer or say lead just going I volatility of years, book they right particular, now. consumers not where over with I see now. for What trends longer that's

it closely a the trends for factor all lead we we're QX. times, [indiscernible] but that following outlook on is of that So the provided

from apologies. comes line Anmuth question of JPMorgan with next your the my -- And Doug

Sorry, of the there question. a part second was

billion business, where years we about business travel building which the is answer one to we like approaching this charged essentially has call core category, $XX value. question Airbnb, amazing a been we other gone. XX how pretty far basically in single gross That's booking Ron, So haven't accommodation. that's really is product your expanding beyond we spent short-term It's And than insurance. which are

we really of are the night, before long-term Airbnb. business. done have ever which to much. expand went XX% our pandemic And the platform, expanded that lean focused resources. pandemic preparing -- functional a -- now beyond on rebuilding hit, began revenue, amount then very have haven't haven't We do of really but and back core of to as We We're which double to to thing. we going new back the explains got we're And multiple our same a lot a the going one with becoming cut we And chapter margin, we do And products really new We're generation. is companies important. a going want need things. prepare the to Airbnb host And cash the of have profitable important of fall, the our new tact. stays, roots October, essentially pandemic our We most one XX% to I this employees and becoming organization. the new and you before This have our what have service, and services. launching going free flow multiple multiple of more of essentially to companies do we're beginning marketplace. to co-hosting that, We're It's now next Airbnb. in one have be most are do than to to to

there not are are but to don't have people homes, time. they ] have time have but they have home. So There who people other are [

we're to Airbnb. going rightly been videos public, to they can relaunch They more Venn working need host. Airbnb people our going to later thing experiences. be They on on we're Then if October. match a we think to to be find learned a exciting. going market in hands, probably very people think call a has coverable inventory. it's And lessons who be to from there's affordable. should those photos. could business. today we not beyond Diagram launching lot experiences a things so been And more have core we're year, you experiences. what we -- going together, we'll we're only of truly near But unique I've expand should on need about to can we're more do we and of to be We that the the unlock need would both two asked That's be what every have begin hit We've earnings so lot They next launching emergence if that. we the and patients Airbnb. them because --

selling Apple, at selling but was going we're products just next services And Apple, also launching rental. year beyond X year, companies at Amazon, at rentals, we're selling launch than to short-term that I next and every of host books. We've short-term in services new new working we're Amazon ready We gotten guest on. to starting look that IMAX. was point look then services. I we're new bigger year, only have either those

It's going next new the question, year. see than lot services, out Ron, long-term to your to offerings, be any will begin So about more our host a rentals. be be guest services, it's that going and Airbnb, short-term answer you'll to new to stays,

And.

the with JPMorgan. from Doug comes question line next Anmuth Your of

I income pricing you you beyond And any in [indiscernible] out you're call class follow-up of talked to Or window. know Brian, Ellie, out across there particularly is in you there circling just markets seeing would core, cohorts? about then, or booking expanding around just Are change anything expansion property? a the shorter levels? activity where call strong are traction. back on the And seeing particular any that

Yes.

you Ellie, don't, take first? second why take So one. I'll the the

Yes.

like, in let's about part we on there a generally And particular, actually little talk North so of the in year, generally, more think people Therefore, question expensive what I which bit of platform? is a So recently seeing purchasing little the read-through you though stronger choosing more larger ADR big are from of can oh, ADR higher demand bit obviously, it assume would people from like is today And choosing can people that sounds you've the properties. what seen expensive what see mix driver are appreciation globally, is is a you of I are far more this demographics. say, listings. America. are or be, economic what the ADR shift, appreciation

I that is read-through. think one

if those larger than can it's is we and frankly, per-guest of that And properties. think hotel. on the process that Airbnb, a affordable more I read about you they affordable think another offer basis, quite through a be value

that that as have is think at to larger is, part ADR which great of shift some value, value guest provide where you a we I appreciation that level. the frankly, So gravitating people mix see actually do Airbnb

optimizing medium be about healthy a framework double-digit the how term. think we and think core term, really term rate growth. new thinking business. maybe growth accelerate Listen, expansion want way Long term about our we can question growing than markets, we're want be we about are. Short growth through high-quality accelerating want I to and to stays to term around your services. growth. to double-digit growing about to affordability, just faster and long really answer give is short conversion And lot can. we in really And having And products a We It's is is increases. about I

about medium-term years. and of operate the only regions. is horizon, global most frame world. of every question on country X a companies to it's of nearly markets interesting world. right, be X if the you'd U.K., really and And X a So asked is in XXX you the you XXX travel to because where we're regions. countries like penetrated like in But world the in this, like U.S., world lot kind And markets company We the travel want like, one in in well, international one the of be network, penetration, would truly in a a there and one have those France, around the international use it'd Airbnb to website that think We're Australia. Internet, countries was where to travel, the platform Canada in global there's

like just So Germany Brazil, big but huge Those France Latin In have Colombia, travel a and travel America seen fastest there's low you of X, progress. major Asia. the of a opportunity bigger. and Asia, countries. to Brazil These products the Chile, big couple In had in Italy our really big X Argentina. continuing in there's world, are the expansion we've a go current destinations. compared have Then Latin huge U.K., a market lot lot some we're the region America, these penetration is you Peru, of and alongside biggest are really markets. we Europe, give to of Spain, and markets, number and examples of to of in markets, we've are countries,

have could Korea, you Asia maybe China, India, kind call then and a as of holistic we region. Southeast So out Japan,

what do international So which we're playbook, going have really to is product an we marketing. and

localize to the First, you need product.

You the have make in you need right place. to sure regulation

our to had product make in in the we retooled you're Asia. letter foundation. sure right our You highlighted that We've investor

characters. different are Asia

so certain to And type laborious languages it's more in. in

they browsing in like to Japan, prefer than and search. do So Korea

product. to conversion some had our And we've that's So huge retool increases. yielded rate

countries some like So the a are game, going to Belgium, back -- pay we billions there's to sooner. going the going Netherlands, of dollars. Japan to longer Switzerland, value or Canada now focused tens to can We be it. the of of in to like current Canada focus If we solidify we've aforementioned the booking to of Australia, these hadn't much. but travel our back It's pay biggest sooner, And really X get we're is market to markets I those focused of one of countries by penetration that's tens of billions dollars all as there going it's to want And some had literally they're are the years but on on increase -- last world. something just on. something getting of we're of or business, gross Australia. think just

your from of And comes line Richard next Clarke. question the

I to more the just year-on-year. sheet, [indiscernible] on a the XX% customers, bit held on the I I look -- pick revenue little guess guidance of QX balance your funds if about behalf want

carrying So bookings the lead it And you're looks more into then times. like shorter talking quarter. about you're

not does quarter mean quarter. the the bookings more that in for So

revenue trying just your that guidance. down with slowing why square So is in to

Thanks, Richard.

one the portion bookings that is, still they aspect. recognize of will is might be sheet quarter balance of be a balance will of revenue in the particular of gives read I terms not sheet good the indication deviations That's obviously, course a within on the one-for-one the quarter. those in balanced you over are to that some the we would why backlog. match: the obviously, items So not recognized couple terms of of energy through as One A in quarter. booked the a take

timing less obviously, entirety pay that the stand it's and payments, is backlog reflect a the or All they're the guide. whether so balance we the -- second upfront payment, not the view [indiscernible] will do, time sheet one-for-one a of the time The of have. give items they the just of

And with your comes Eric line Sheridan Goldman of Sachs. next the from question

and opposed ask a I versus the it X booking from does terms Maybe where seen to X do normalization booking in dynamics When that how you shift in might versus you post-pandemic, of working that are maybe that can it demand-driven window want of discerning less to that just today or about as where when consumer of of couple elements today years how what window. shortening you of window the pre-pandemic travel? think evolving booking years their terms what is spend global last looks think different coming much to like, of ago? And back a X-parter where look much back booking elements to money be see XXXX and was the you've window way more over the into

If say, lead time. look 'XX. we or within average So talk in at it what the in the where time we of lead over XXXX, was QX QX about days X let's across of times was in were, X platform

booking they booking seeing listing that the that very they hasn't patterns their where there in fast far much we by the the of were price of a of last the lead in that kind 'XX, eager ability people had their been forward a 'XX What I had they normal. you QX, to massive the time saw up think sure no quarter, book to on got did advance way out people the And you're some the material attractive period best because say, shift. COVID So trip reversed kind book, path most to of to to from initially, time to return pre-COVID through early. to make travel of at through so in confidence are in XXXX was see reduction terms normalized

the So X-year helpful hopefully, arc. that's overall in terms of

the today, of In I of having reiterate last-minute just color the beginning strong. some seeing some terms bookings call, terms in commentary what the the of provided of are incredibly we're color at to

in just much seems rates, in I of it's we've terms of of COVID be us, lot the or bookings, that macro is get your average than higher the we in booking So average. seen periods, that's from of being what more our of making I that like they to a a of to outbreak what right There month they offset time time, it's amount headline, to year, impact you terms terms same it of the in half it There's say, which not be from would a be travel guiding variant, And what rates have sure down. growth the summer time past think they are modest in a are now. in but advance. And about concentration moments think whether I lead bookings, the overall at happen is a it are, desire frame and of softness elevated people, it of minor very time portion than time backlog new in is, last which that whether are where given bringing that be longer. for bookings prior the softness, closely just did does in a the in in month time to by but or have whether tracking Israel, we're a

the of Stanley. line Your Morgan Instructions] from comes next Nowak with Brian question [Operator

in squeeze I'll Maybe two.

me marketing ask you, Ellie. for Let one comments on expense the

a versus this grow using these AI of you sort talk we marketing supply And to all going you branded of on the guess resonate your sort You partnering booking model time net the in and There's quarter. maybe sort large Gen of gives confidence question and strategy. And alternative even to a leading room Gen hotel could that hotel about about assistance. of how the mentioned differentiated think How years sort sort growth is in funnel, faster spend? have top around. really think is taking over one than guide, assistant with about marketing capabilities. about then third of revenue do faster of top-of-funnel create anything expense travel performance the you this do lot your philosophical I language Brian, you to learned of partners for spend AI

will second. Ellie, take I the

a So little about me spend. Brian, talk marketing bit let our

in Let What basis, year, in before us provided as percent to so of that the full was what in is was you've we year allow for intend HX, to but investments for flexibility 'XX, we the guide this And talk in flat where QX the back full that's the of shared guide half invest do growth remind we me far just of growth. in back that into deliver looking in a of saw we the EBITDA was XX%, nearly the you on informs letter. in effectively year seen margin intent margin a in was EBITDA guiding from XX% lean And to that the QX. an with down February minimum the that of to to about and what up were back marketing slightly it starting which I obviously a 'XX. we you revenue And those delivered year year-over-year February. was obviously on the compression

In terms various confidence particular marketing around are we the on in the of in and leaning channels. where

a Let the in me marketing. the components just talk of increase of about couple

we international incremental handful Mexico that other we Peru, layering So on that success and [indiscernible] In will like in right that conversation American seen had of effectively Latin playbook. Brazil be extend we've you'll you'll on that global market. markets the region, in QX places What targeting and a see turning like markets Chile, to countries first, try with on Colombia, is will our or consistent in Argentina. particular, to us our see intend be

like perspective terms expansion been feel marketing rates in to So of our market, of there. both it had success the the a like core the differential have good there'll be of time as incremental feel layering growth in as in takes terms shown of well a as our expansion from perspective we between reaccelerate our we some successful. Obviously, have results on pretty markets markets, markets in efforts product But growth. investments have those we

them be rolling to the markets will so medium out over And term. incremental helpful

into In that efforts, able terms marketing, we've marketing lot what we've of that based with been performance incremental to we've made QX, shared high continued that efficiencies. year-to-date you performance optimizations a on extremely is of maintain to our has

And in high do see so of have lean terms we and those, confidence in where we quite returns.

Gap] us maybe of iPhone Internet was feeling It of kind that's that like everything when going still was first it think I true. launched. [Audio the the when launched, Like of And But you the was moment, excited. one incredibly to discovered But had probably was some think or change. I probably the say, were XX ChatGPT since that take I'd think nearly months months -- of applications things going to think the learned XX in we've lot change. over layers. years is people it's X last, for than or to I AI, about launched, a think longer it to If X

lot innovation there's on model of lot the have the applications. chip, been the innovation of and model. a been the on chip, have There's have you the You you a

of look generative different AI reason because e-commerce of improvement our AI, fundamentally of or it's just models But of less even prolific in because are at a travel. paradigms. going to is, take like paradigms all why Very [Audio fundamentally your pre-AI if little, rate to We of of time And apps the which are have different lot new so especially think you AI? the these Gap] in develop there's models. I And new screen, a and home your

and this There's what not model. been we I'm AI applications done that has the to paradigm interface need the That's different aware as in develop iPhone one we yet. native so top XX was app do as of. fundamentally actually in a multitouch one need the is are app No that XXXX, And to app we store to change. a in that the fundamentally United is to the need new that States

be find to of be one to I going more a a adapting eventually on. we're where it's the you to working concierge, to having ad travel of do listing. things It's learning, destination, of going will of conversation, years box develop take much you. So number a type this. a search the and that's dates think much that Airbnb And than more it's

will the allow I And so take probably And paradigm in time. a new next my of what's to what would this won't friends interface answer this to But more it your is businesses. to attach us think question this new year that also just a on saying, is possible, are going be tech happen. most bit

go just not permission where is, breakthrough and business have are So the today, permission -- can Well, the you. a we lot into of every what community, information can we could of because ask trip told of permission more interface, move you if suddenly, top we But have because about end-to-end do And and have but an index we you to had we we provide point We a hotels? can traffic. you to the had going, question like communities. even we [indiscernible] travel. have funnel where for inspire world's we we a we

So there's we one own are [indiscernible], interfaces opportunities apps It's bought still as And pandemic. new investing in a most booking of we to world, hotel everyone, before we in remind new hotels. the the the we cross-sell develop lot that popular of inventory. more to just and hotel

new opportunities are things, down and to there this including everything. interface the new sell So hotels road absolutely, with

next your with comes line from Post of And America. of Bank Justin the question

key average markets, macro that share like Europe signs -- maybe and America you trips little acceleration a do of North company. market your could in shorter the the on drive regions? or the And of than two Any pressure kind cyclical could growing some second, period And how that or any the Just people presumably slower feel about down when end? ends? trading those for

Yes.

-- would is a North just prior America go I time. in I of the about to talk globally. little would EMEA. let That me lead and back bit what terms we're in seeing my comments say So both true commentary

So both say EMEA. applies has it America to and North relatively I quarter to been date. stable would EMEA

it's part story moderation not the have necessarily shared. we so broader And of that

more there's that handful North we've quickly the would nights. components. of lead over what In And I terms say; stays a seen is stays concentration the times, a long-term our of year last than shorter of America short-term grown long-term has is America, is stays. One second North have a

went North generally a I has And comments. place average we're for would happening what's in that that a drag and California July is just growth total so LTS in we the that's we year our think on period, on a bit the terms changes little some in particular, North LTS we've regulations in LTS X, fees, particular on America. of on watching add a other in is bit with which terms display One comped of the headwind of California, a price the platform, cancellation U.S. just that outsized and ago one is the couple in into business. a the thing an on of in And that made regulatory but been color is rate to America. our headwind grace The impact providing of a

about rules business, XX% California Our as California reside as who which the are what of to applied is if well who guests include to you in new GBV. is our traveling California, both guests

area trade see I made to earlier of we're [indiscernible] than an that is material function larger, put downs. trip rentals normalizes has in move that's closely regulations a watching people that really listings. quite trips, ADR, Much mix rentals, towards to down, trip. but growing place. quickly long-term the versus into we how continue of seen And a X-day would X-day less I contrary, our gone more the so And comments shift expensive on short-term these after the the been a people book have then terms behavior say between a more consumer really shorter to quickly to haven't choosing average So

down don't think type asking you're seen likely that about. I behavior of trade we've So the

of share, of component When the share. second market look your question, market market the we nights at look we stayed In across covenants. terms at of

QX, the we're to world hotel with market we And year-over-year accommodation. so includes continue the is other an hotel that we in prior quarters, true basis. basis or feel intermediary. We what nights market well and total a nights regional share. And when a market stayed on at -- booked we gain over doing across booked either as travel through consistent hotel that a that like through obviously share we all directly on terms universe basis, see gain are share quite that to continued in is the of That look on of also

Mizuho. from James next your line with of the question comes And Lee

Two here, please.

some First frictions understand you be suppliers have points trying the us to It one North seeing increased of some to to general, issue. a color you here? about that or plenty for so to just are I you nonurban of resolve demand you're in have pain Can and shift America you hotels? I the doesn't in that. On weaker that EMEA an on seeing customers? help key Experiences. on competition and And problems And What get to second, thing of markets. are difficult you and mix both seems for like out want supply, seem called markets on plenty urban see listing noticed more

the take question. I'll first

things X for to do that there's we're looking with So Experiences.

offer be now, we The a have want them -- people, could we Z, think first Gen Experiences better we afford. can especially that to we is Right thing more price younger affordable can selection.

So that's listings. really have don't We thing. the affordable first enough

is The we more good. It's The have second good. thing inventory we unique really need inventory.

another for interesting homes. our can some be that's and the we platform, of In the to Airbnb, world most inventory excitement. only Experiences for on X-star of have getting average on find But can that unique fact, in more think X-star higher not platform, lot to the you we than a we and we're is recruit people at the still rating even rating want

better. The third can merchandise think is them we we

but movie? video. wouldn't. stills. a of Experience deciding the see Imagine [indiscernible], trailer, movie, probably film go movie, on You think you with instead Would had a movie with you I

trailer. So need you a

should it core in they first. the come home we've need people lot don't find the discoverable I page, priorities our to video. to You on Experience fourth business. be video to of X needs now, focused really in last The a is sold hard that Experiences our mean years, because over Right Experiences. app. ever see

sell Experiences. we know wouldn't You

you And of some going to and them show our the we're experience don't to proof. Experience book the on We're is the awareness We're discovery some experiences you home we provide engine magic the to people a Icons to really Most completely going X bring though the cross-sell search social the know other launched years right final and low. even to target like So there. reimagine and the for magic guests ago. the thing countdown to is of and offer Experiences going homes. really after

them. tell going the we to we and because about this do Experience same Homes we're them market of without and And market actually within world lot can So incremental investment a can ad. the

can X things, do we change those think Experiences' we [indiscernible] trajectory the business. I if So our of dramatically

markets. terms mix market second it your non-urban urban. not -- in it respective because that the of slightly higher is are be continues question We shift. of but shift to to in letter we major than James, nonurban there in differential segments, it's is the call the of What seeing to isn't terms a a markets in growth that

a, that years maintain it I our a a, was our tells share meaningful we thing that than would differentiated previously. say, nonurban. say, offering I the have what of you is to think I about demand portion larger business is interesting business of X post-COVID would in think And I

exist great those I continue broadening to the variety demand markets markets. available, awareness think is over there's that the that hotel we last for of of Airbnb a been X see and years, simply don't

the Justin with line KeyBanc. And your next question of Patterson comes from

comments appreciate margins should and invest I you investment long see we to Could year. cycle seeing this it talk persist? flexibility how start about And this returns? when your would [indiscernible] meaningful more on

have look we guide a couple we for have of where provide started. we over on I have expansion obviously last come years, say given a obviously as delivered We'll would you approaches. What where we substantial from at So of 'XX. you view margin amount not 'XX the it a is, if

You had pre going we And to negative EBITDA later, followed us XX% time, last margin margins. were -- some almost X deliver able for but public, we year. years

than date this for deliver What flow of we target more profitability lower the And think growth. the see basis year. to free those I both like is a I said increased more strength us that's model, very should scale think start as we obviously basis. So those is about, will in on and margin of think have about that all demonstrated in our year. intensive. current What think previously, as both been make And cash the the deliver of we markets when growth of half said to the require offerings, why as well expansions of international a I you a of that order back investments and you'll some ongoing investments then lever more medium-term also growth. I to not expanding to our capital the though, anticipate the long-term growth lever core

don't will overall in some the levels. the we profitability around use we of sea any to So of change invest, kind but future anticipate foreseeable profitability

line Cowen. Kopelman And question Kevin the of with comes your TD from next

Great.

each as we out as slowing do you're third kind towards you growth revenue like numbers the today, adjust you your of of impact, quarter Based of on if stabilization? some lead could you QX? quarter. how the Or look bit a see it are anything at further to Easter do dynamics now slowing little shaping the the of end that anticipate have you So looks in [indiscernible] this the a year year, for seeing expected up to

Kevin. Thanks,

we're times, on people So long that have booking I term, the QX. the first, are that not would I they it's over to going say, may pretty an provide for right definitively of you But informative not booked when I it's lead not think now give yet. not outlook from the color perspective

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in we'll of beyond. and something that certainly out that's so terms for And on the QX be eyes

I the year. think for about balance the how also out thinking of just play comps the

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the So heading QX. that approach be as end the into those are the lapping we summer will comps of

with the comes question JMP. next of Jones Citizens Nick your And line from

required how every services you're about about There's Q&A, to But sounds going there. launching philosophically and it expenses maybe Brian, not thinking relaunch talk a a of incremental the bit on it. lot we're there's plans products year. Experiences. to like in Maybe earlier and just new investment little

and what So get continues I we demand if maybe to services. the and a like investment to lot of can bouncing versus of level how invest of of plan kind sounds be back, new should commitment speak to products exciting weaker kind in about guess you how the nimbly to thinking cycle you with be

we've between mean short that long have built our already I essentially a Yes. term of term, medium and forecast term. to spread

going big much. and we not mostly very $XXX have in services talking We're the Asian mean, They're of of conversion growth think to internationally, we like then of just teams short term, in expanding and increase short Probably Every like one is cost about opportunities based results improvements. how hundreds quite of in thousands few like affordability, new of opportunities can So the I in biggest increases. again, not million, reliability. variables hundreds very offerings X% though, we of Most be then business some about term, the and points have on usability our the driver and conversion people, is biggest basis people. these of the headcount. be Japan, might of growth very, a of quality and And the Japan. like on some countries nimble are we

most is really combination taking So won't to And traffic a offerings. network going effect is we our this cross-selling that new in see business. have a because of you already traffic for business be

and do can cost we so because we efficiently. And that very fairly found supply, really that's of it's just acquisition of not the it expensive

-- internationally. That's would nimble. a that lot probably going incremental materially is be like of There's it's not a So change. most marketing, is investment this very to especially variability The of question.

next Your with Jed the from of comes question line Oppenheimer. Kelly

hotels putting about cross-listed, and urban might rate? commoditized a the can but Can platform. convert supply your just be that on you putting going Just more the higher balances that consider opportunity to more you potentially company back might and more philosophically how at talk that

Jed.

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at if people And know do what us a because typically $X there's to guests more they that. One to ] billion. a [ is reason one they're hotels nearly they're book billion Airbnb so hotel the just increased booking reliability book on no tell of is homes go one Airbnb, of desk. reliable. to They front have we in can we get. going that's And get two ways currently those platform, from to $X.X would They

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you are space and business If you plug you hotel night, you're need better. and a for out, alone, in traveling plug the is a you traveler one

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we think in network there the is business Gap] [Audio and opportunity gaps lot hotels. have do of those filling we hotels between to night more getting So and travel an of offer one stay, Airbnb a

asked World you've talk I National of provided getting Convention. just help That Cup Cup local this for you World we been from able FIFA off, lessons us housing -- question, down to guests really and will as opportunities well, memory event lane set you out to I'm for provided next XXXX, to like pulled Olympics, XXXX, next regulators next Democratic to and in housing the the this. in et we glad you in just the like big inauguration. in the the Mark. terms want for you've agencies. that. that because cetera. It's Airbnb Then draw design messages about And take Then up housing XXXX, provided a back conference. a for better great

X we started for Our first when housing Airbnb events. provided moments was

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in we We nearly XX%. in homes did ago what a have we now and Paris so increased supply last focused And is we tariffs year our on year, by Paris. XXX,XXX

to in far and that Paris could so guests, counting We continue in have XXX,XXX day climb. number

were the in room. guests, as could a happen ever X not without XXX,XXX again that to people hotel that's X the this I the have we of Olympics, imagine equivalent know in staying it, Airbnb. Olympic So not Stadium. because could Olympic you fact is stadiums The stayed want Airbnb

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down So conferences, Cochella, events, go the list. festivals, you

this think for Airbnb supply and the provides event have cities like is because a we them. actually for best They're the I solve coast housing come when is for occasionally we recruit events problem recruit an strategy supply. not And to managers. to who only property that Airbnb individuals

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very we -- we playbook. continue plan the it's and to So been expand successful,

Ju comes question the from of And your UBS. next Stephen with line

Great.

the it's on ask rooms. I fastest. the should would wanted that probably -- that this Airbnb Brian, be product So to is economic thought [indiscernible] given I growing have be more should that backdrop

shortages call supply of growth the bit? here maybe awareness? is you any that anything rate think I out heard factors that product earlier, there in out fit on terms might be or call but you can So I weighing little a

the is with Airbnb biggest percent our room very Yes. of is It's The reality a business. small issue small percentage. a just

it very a if grows, by a for small very base. It's in however going [indiscernible] So house. is popular base. but small how off room very even providing to it Z, of fast be It's matter started affordable. Gen It's no a -- it's it very

you're that. to not rate major a of see going the change on the company so to growth based And

thing, I out, make. I'll broad though, maybe points but two zooming think just the

world. the of in diverse The is the most first is businesses one Airbnb point

thousands luxury in including [indiscernible] large people. by of We in every yourself in XX with and the you to have point one to dollar continent world, the night of up or a We nearly world, as groups an up every country, at bedrooms allow homes of We're travel Antarctica. to tens Airbnb.

vacation we're urban in a [indiscernible]. we're so very, And in areas. We're

world. is of philosophy general diverse for have array to in the So everyone the our inventory have something to most

in obstacle The is area other is to of just continuing in help I'll make a they trust. The of in just invest this point don't know. with road system just really change would that our Airbnb people like biggest that an a is staying down room house staying rooms comfort the to

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of with the Lee comes your Bank. Deutsche from And line next Horowitz question

one one pricing. Maybe on nights and on

these better assess you as second one investments talking on So growth. maybe growth you of year. tend then this Ellie, sort of total place the what dollars. ADRs. periods the understand on these accelerating company terms putting in that you of over payback ROI to time investments half accelerating And a And means into may frame the on more expect Can about you're in of rates?

continues demand sustainability soften, North scenario? simultaneously as you business, persistent ADR highest you ADRs despite trading America travel [indiscernible] America ability guess towards beyond North your your from perhaps ADR in mix homes, weaker and pointing are that to think guys North of I the continue about through type demand environment building while highlighting XQ people away You grow do the your how of overall and growth America, to ADR again, of pressures some up growth entire to sort region, to in about growth think for when you the

Yes.

relatively marketing talk a first, in ROI channel term. not about marketing the we From would based obviously, standpoint, say about of and that the way specific payback performance is So weeks is very months, I terms of paybacks. me different view investment. the very think quarters. let short and on marketing We

think a time longer that In about terms brands, horizon. over we of

only think campaign, be about particular the and sustained be in quite brand benefit, needs needs the and for not you If to it any it it to but some sustain actual into you convert time, transactions. also see market for benefit to

third I area an that of we of as from And that about think in I something a some X are of and factor, say, I terms to our then investment. programmatic, this mentioned consistent investment the that more margin, level payback So growth. a to, build do would a that need requires, of teams is months at year period the driving not

terms modestly And will it the I gradual so will payback a have last headcount of driving targeting say, a acceleration initiatives. we in variety across high been that above over growth -- long should investment be but of couple we've of or payback the years, that in think

level. terms question geo In of think I pricing, one there's happening about what is a at

softer global terms what ADR. component in ADRs. come a very report. question ADRs bit regions larger still little shift ADR a we Latin would a overall of One accretive are America question is To APAC aggregate of guide the global if which, the nights those and factor Over think our QX North ADRs. broader regions, incremental that like in the behind The have all of [indiscernible] highlight, them down, than global from business. your global terms America, terms economics you to as time, portions shift strong. away are anticipate as we does highest mix the or the other that and happens of would but terms huge of is the in I there's Obviously, in become

agnostic because across a deliver ADRs. global we're a can it's somewhat range of basis, wide So a on strong -- economics we

I will that gentlemen, to remarks. for the Brian question-and-answer will back and turn now ladies session. Chesky conclude conference And over our closing

right. Well, for All today. thanks everyone joining us

few yet, revenue cash record billion, ago. our a representing free to we've year billion higher margin of recap, flow Just free of than Adjusted a XX%, to cash and much was QX is features more. release. winter XX% $X.X a EBITDA highest stage going of to part a and our expanding October, and set come. In but host more the cohosting, provided significant share past upgrades XXXX there's services in weeks, progress the $X.X as trailing was for This XX-month made flow and of we're includes setting

more in So I and for accomplished I'm look with quarter. forward QX, Thanks proud you of to what we sharing next joining.

today's that you your And participation. ladies for and gentlemen, concludes call, and we thank

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