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The online hospitality network recovered from the pandemic travel slump with lightning speed: It cracked the Fortune 500 list of top companies by revenue for the first time in 2023, and analysts expect the company to grow revenue by 17% in 2023, to $9.8 billion, and by another 12% in 2024. Concerns over a possible inflation-driven travel slowdown put Airbnb’s share price on a yo-yo trajectory for most of 2023, but more bullish investors have applauded the company’s efforts to boost its inventory of less-expensive listings, and its potential to use AI to protect its profit margins.

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CTW 2021-16-Airbnb

<span style="font-weight: 400">Since Hurricane Sandy struck in 2012, Airbnb has helped organize temporary housing for refugees, asylum seekers, and people displaced by disaster; it has served 75,000 people so far. In August, as Afghanistan fell to the Taliban, Airbnb’s nonprofit arm said it would pay for hosts to house 20,000 Afghans. In September, Airbnb said that support from the host community had helped exceed that goal.</span>

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Airbnb operates a global platform that allows hosts to offer accommodations and experiences to guests. Its marketplace connects users via web and mobile apps to book stays, activities, and experiences. Founded in 2007 and originally named AirBed &amp; Breakfast, the company adopted the Airbnb name in 2010; it became a publicly traded company in 2020.

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Q4 2024

Airbnb (ABNB): Company Profile, Stock Price, News, Rankings

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Airbnb

airbnb

Good afternoon, and thank you for joining Airbnb's Earnings Conference Call for the Fourth Quarter of twenty twenty four. 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 fourth quarter of twenty twenty four earnings call. Thank you for joining us today. On the call today, we have Airbnb's Co Founder and CEO, Brian Chesky and our Chief Financial Officer, Ali Mertz. Earlier today, we issued a shareholder letter with our financial results and commentary for our fourth quarter of twenty twenty four. These items were also posted on the Investor Relations section of Airbnb's website.

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

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

All right. Well, thank you very much. And hey, everyone, thanks for joining us today. 2024, Airbnb outpaced the travel industry's growth. We ended the year with Q4 revenue, nights booked and GBV all accelerating from Q3.

Now before we get into the results, I want to just quickly touch on some of the work that got us here. Over the past several years, we've been preparing for Airbnb's next chapter and we wanted to make sure that guests and hosts love our core service before we introduce something new. So we listened to their feedback, and we rolled out more than five thirty five features and upgrades to improve the experience. These upgrades include major reliability efforts like guest favorites. Guest favorites make it easier for guests to find the best listings in Airbnb.

We've also made it easier, to host by launching the Coast Network, which is a really simple way to find the best local host to manage Airbnb. Now in just four months, the co host network has grown to almost 100,000 listings. At the same time, we've been driving growth in number of product optimizations. We made it easier for guests to find the perfect stay with enhanced search functionality and better merchandising, and this includes things like suggested destinations, more detailed maps, and a new welcome guide for guests. We also introduced flexible payment options and local payment methods in nearly two dozen countries, making it easier for people around the world to use Airbnb.

And we're in the process of rolling out a completely redesigned checkout experience that makes it even simpler to book at Airbnb. Now as a result, we've seen higher conversion rates and we expect these improvements to continue delivering growth in 2025. By optimizing key parts of our product like search, merchandising and payments, we're seeing strong near term results and we're building a foundation to support the introduction of new offerings. Finally, we've rebuilt our platform from the ground up with a new technology stack. This includes new listing management tools for host, and these tools make it easier for host to list and manage their homes while giving them the ability to eventually offer more services.

We've also upgraded our messaging system into a single unified platform, making communication between guests and hosts smoother and more reliable. Now with this new tech platform, we are able to innovate faster and expand beyond short term rentals into becoming an extensible platform with a range of new offerings. And 2025 marks the start of Airbnb's next chapter. Now, today, our service is better than ever and our platform is ready to support what's next. In 2025, we will continue building on this momentum.

We're executing on a multiyear growth strategy to perfect our core service, accelerate growth in global markets and launch and scale new offerings. Now we've talked a lot on previous calls about how we're preparing to expand beyond our core business. And this is the year you'll see the beginning of a new Airbnb. So now I'm going to turn over to Ellie to give you a financial update. Ellie?

Thank you, Brian, and good afternoon. I'll start with a review of our financial results and then provide our current outlook for Q1 twenty twenty five. As Brian mentioned, we ended last year on a strong note. Knights and experiences booked accelerated in Q4 to 12%, making it the highest year over year growth quarter of 2024. Revenue also grew 12% year over year to $2,500,000,000 in Q4.

Net income was $461,000,000 and adjusted EBITDA was $765,000,000 For the full year, an adjusted EBITDA totaled $4,000,000,000 representing an adjusted EBITDA margin of 36%. Since 2020, we've delivered over 4,000 basis points of EBITDA margin expansion. Next, I'll turn to the balance sheet and cash flow. During Q4, we generated $458,000,000 of free cash flow. And for the full year, we generated 4,500,000,000.0 representing a free cash flow margin of 40%.

At the end of the year, we had $10,600,000,000 of corporate cash and investments, as well as $5,900,000,000 of funds held on behalf of our guests. Our strong balance sheet allowed us to repurchase $838,000,000 of our Class A common stock during Q4 and $3,400,000,000 for the full year. At the end of Q4, we had $3,300,000,000 remaining on our repurchase authorization. Now let's shift to our Q1 twenty twenty five outlook. After closing out 2024 with our highest quarter of nights and bookings growth, we're excited about the strong demand we continue to see early in 2025.

For Q1, we expect to deliver revenue between $2,230,000,000 and $2,270,000,000 representing 4% to 6% year over year growth or 7% to 9% when excluding FX headwinds. As we mentioned last quarter, revenue in Q1 twenty twenty four benefited from both the timing of Easter and the extra day from leap year, creating a hard year over year comparison. Without these calendar impacts and FX headwinds, our revenue growth would be about six percentage points higher or 10% to 12, which is relatively stable compared to Q4. For Nights and Experiences booked, we expect year over year growth in Q1 twenty twenty five to be relatively in line with Q1 twenty twenty four once you exclude leap day, which contributed about one percentage point of growth last year. On profitability, we expect adjusted EBITDA and adjusted EBITDA margin to decline compared to Q1 twenty twenty four driven by the same factors impacting revenue.

That said, if you exclude the calendar and FX headwinds, adjusted EBITDA margin in Q1 would remain relatively flat year over year. As we look ahead to 2025, we're focused on executing our multi year growth strategy. Our strategy is designed to drive long term growth and deliver market share gains through three levers: one, perfecting our core service two, accelerating growth in global markets and three, launching and scaling new offerings. We're focused on strengthening the economics of our core business and generating strong free cash flow, while also investing in growth opportunities. This year, we plan to invest $200,000,000 to $250,000,000 towards launching and scaling new businesses, which we'll introduce in May.

Even with these investments, we expect to maintain strong profitability, delivering a full year adjusted EBITDA margin of at least 34.5%. Because these investments will roll out throughout the year, their impact on our quarterly adjusted EBITDA margin will be the most pronounced in the first nine months of twenty twenty five. As these new businesses scale over the coming years, we expect them to make a significant contribution to revenue growth. And so each year, we'll layer in new offerings where we see long term revenue growth opportunities. And at the same time, we'll focus on delivering strong profitability and world class free cash flow for our core business.

And now with that, I'll open it up to Q and A.

We will now begin the question and answer session. We'll take our first question from the line of Stephen Ju with UBS. Please go ahead.

Okay. Thank you. So I think in the past, in terms of the global sort of localization effort, you've talked about Brazil. And I think in the shareholder letter, you were showing your localization efforts for Japan. So just wondering how long it typically takes for one of these efforts to localize in any given country it takes to come together?

You guys have mentioned Argentina, Germany, South Korea and other places. And Eli, I guess the $200,000,000 to $250,000,000 of investments that you're planning to incur, I guess, in the front half of this year for the most part, what is that primarily going to be geared to? Is it going to be marketing? Is it going to be engineering staff offer? Any color there would be helpful.

Great. Thank you, Steven. Let me start just giving a little bit of color in terms of our global market strategy. As backdrop in terms of context on this strategy, we've shared over the last year that Airbnb is a very global brand. However, our business is concentrated in our top five core markets.

So that's The U. S, UK, Canada, France and Australia. Those five markets comprise about 70% of our gross booking value. And so as a growth lever, that we've been investing in, we've been targeting markets outside of that top five, where where we think that there's a sizable opportunity for us to invest and both gain penetration in the markets and also provide a tailwind to our global growth rates. I think what you've seen over the last, not just the Q4 results, but over '24 as well is that those investments and that targeting of new geos has had a meaningful impact on our growth.

In particular, what we shared in Q4 was that those markets that we've targeted are growing about double the rate of our core markets. And to your question in terms of how long does it take? I would say it depends on the specific market. I think Brazil is a huge success case and that's a market that we've been focused on in particular with adding brand marketing over the last two years. And we've been able to materially increase the scale of our of our business in that country in particular.

I think there's other markets that maybe the the, duration for building scale will take longer. Country that I would put in that category would be Japan, which is a market that we just commenced our brand marketing in Q4 and we're starting at a lower base of domestic awareness. So each of our targeted markets, we have to factor in where the market is, the level of awareness and consideration we have among local travelers and the level of product optimizations we need to make to make sure that we are appropriately addressing the local audience. So your second question is around our investments in scaling launching and scaling the new businesses. As the letter details, we're planning to spend approximately $200,000,000 2 50 million dollars this year.

And you should see the bulk of that investment hit both our marketing line and our product development line items. Just a little give a little bit more color here. In terms of marketing, we will obviously be spending to build out the teams to drive the supply operations around those new offerings. We will also be investing behind awareness of the new products and demand generation. And then on the product side, we will be slightly increasing our pace of headcount growth across our product development organization, such that we can move more quickly across our roadmap and support these new businesses.

Our next question comes from the line of Richard Clark with Bernstein. Please go ahead.

Hi. Thanks for taking my questions. I just want to

ask about the launch we've seen of AgenTic AI out there. I think Airbnb avoided some

of your peers had. But are you leaning into those operators? Or are you confident you can kind of control the AI flow through the Airbnb platform?

Hey, Richard. Yeah, I, here's what I think about, AI. I think it's still really early. It's probably similar to like the mid to late 90s for the Internet. So,

think it's going to have a profound impact on travel. But I don't think it's yet fundamentally changed for any of the large travel platforms. And so, you know, we want to be the leading company for, you know, AI enabled traveling and eventually living. And I'll just talk about a little bit how we're going to do that. So most companies, what they're actually doing is they're doing integrations these other platforms on trip planning.

But the trip planning, it's still early. I don't think it's quite ready for prime time. We're actually choosing a totally different approach, which is we're actually starting with customer service. So later this year, we're going to be rolling out, as part of our summer release, AI powered customer support. As you imagine, we get millions of contacts every year.

AI can do an incredible job of customer service, can speak every language 20 fourseven, they can read a corpus of thousands of pages of documents. And so we're starting with customer support. And And over the coming years, what we're going to do is we're going to take the AI powered customer service agent and we're going to bring it into essentially Airbnb search to eventually graduate to be a travel and living concierge. I think it's a really exciting time in the space because you've seen like with DeepSeek and more competition with models is models are getting cheaper or nearly free, they're getting faster and they're getting more intelligent. And there are for all intents and purposes starting to get commoditized.

What I think that means is a lot of value is going to accrue to the platform. And ultimately, I think the best platforms, the best applications, are going to be the ones that like most accrue the value from AI. And I think we're going to be the one to do that with traveling

Our next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.

Thanks so much for taking the question. Maybe just one quick follow-up, Ryan, and then if I could ask a follow-up. With respect to the AI, I appreciate your answer with respect to outward looking and how it might change the landscape. What do you think the potential is internally to apply AI for efficiencies inside the company and create an additional layer of potential margin efficiency and or free cash flow conversion in the years ahead? And then in terms of the way you guys framed the year with exiting at a higher margin trajectory post some of the investments you called out, will there be any change or thought about how your capital allocation process might evolve as you move through 2025?

All right. Hey, Eric. I'll answer the efficiency. I'll let Elliot take the second part. So, yes, there's like a couple like efficiencies that you could imagine Airbnb.

One is obviously customer service. I think that's like one of the biggest ones. I've kind of already covered that, but I think that's like a massive change for Airbnb. The other, I assume, you refer to as essentially engineering productivity. We are seeing some productivity gains.

I've talked to a lot of other tech CEOs. And here's what I've heard talking to other like tech CEOs. Most of them haven't seen a material like change in engineering productivity. Most of the engineers are using AI tools. They're seeing some productivity.

I don't think it's flowing to like a fundamental step change in productivity yet. I think a lot of us believe in some kind of medium term of a few years. You could easily see like a 30% increase in technology and engineering productivity. And then of course, beyond that, I mean, I think it could be like a order of magnitude more productivity because it but that's going to be like down the road. And I think that's going to be something that almost all companies benefit from.

I think the kind of younger, more innovative startup like companies might benefit a little bit more because they'll have engineers are more likely to adopt the tool. That's probably pretty important. But I think this is what I'm hearing from other people and we're pretty much having the same experience.

Eric, to answer your question with regards to the capital allocation strategy, I would say, no meaningful change in terms of strategy. What we've stated consistently over the last two years is that the GAAP allocation strategy includes one, obviously investing in our core operations, second, valuing M and A where there's relevant opportunities, and three, returning capital to shareholders. Obviously, given the strength of our balance sheet, as well as our world class free cash flow margins, we have the capital to do all three. You can see from our '25 guidance that we are leaning in through the P and L in terms of investing slightly more in terms of the core operations and in particular new businesses. And then from a returning capital to shareholders, you know, you should look at the volume of repurchase activity in 'twenty four as a guide with regard to the magnitude in 'twenty five, I would expect us to be slightly price sensitive and to dial up the quarterly repurchasing based on the underlying stock price.

Our next question comes from the line of Justin Patterson at KeyBanc. Please go ahead.

Great. Thank you very much. Brian, can you tease out

pace of product innovation versus the past? It sounds like this new tech stack should be beneficial to product velocity. So I'm curious where you saw friction points on the prior tech stack and how you think this new tech stack really positions you to execute on those growth initiatives you outlined at the start? Thank you.

Hey, Justin. I mean, this tech stack probably like this project probably started frankly, six years ago, if I'm not mistaken. So this has been a very, very long thing. We've been doing it for quite a long time. I think the big milestone is that like most of the work is now complete and you're going to see the sheer like almost every part of the application is going to be essentially rebuilt from the ground up.

What you've seen is like we've done 500 or 3.5 upgrades. The vast majority of those upgrades have actually been in the last two years. So every year, we are increasing the throughput of features and upgrades. This summer release is going to be significantly larger than past ones and I expect the ones after that will be larger. So, it's going to just basically what it's going to lead to is the fewer engineers being able to basically shift features faster.

And so there's a pretty, pretty huge gain here. So I think what you should expect is this year we're going to launch significantly more upgrades than last year and every year it should increase.

Our next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.

Great. Thanks for taking my questions. Good guide, guys. Just two questions. One, so Brian, as you're thinking about sort of the new products and new use cases to come from some of the growth opportunities launching in May, Can you just talk us through some of the larger points of friction or opportunities high level that you see from a guest and a host perspective you're looking to address with some of these products?

And then the second one, Ellie, on the full year margin guide, the at least 34%, can you just sort of walk us through how you're thinking about the contribution from the investments in the back half? How are you sort of gauging the origin markets versus the expansion markets sort of growth throughout the year? And as you kind of tumble through the comps for the margin

Yes. Hey, Brian, I will and are you asking just to clarify the first, this is specifically friction points for new products and services, not product optimizations, correct?

So let me just kind of back up and just give you a little bit of our philosophy. So we spent the last like four or five years really trying to get to this moment where we can prepare for the next chapter of Airbnb. What we did, as I said, is we rebuilt the text app from the ground up. We listened to guest and host feedback made over 500 upgrades. We built this new business organization that Dave is now leading.

We've become obviously went from breakeven to quite profitable. And so I think we're now ready for this next platform, next chapter to expand beyond our core where Airbnb is just a place to stay. And to do that, here's a couple of philosophies, a couple of principles we have with our philosophy I'll share and also tell you about the friction. Number one, I think we can do this quite efficiently because we are not going to launch separate apps or separate brands. We're going to have one app, one brand, the Airbnb app.

We want the Airbnb app kind of similar to Amazon to be one place to go for all of your traveling and living needs.

place to stay is just really frankly a very small part of the overall equation. Every new business we launch, we'd like to be strong enough that it's standalone, but it makes the core business stronger. I think that each business could take three to five years to scale. A great business could get to $1,000,000,000 of revenue, it doesn't mean all of them will. And you should be able to expect like one or a couple of businesses to launch every single year for the next five years.

We're going to start initially with things very closely adjacent to travel. So when people book an Airbnb, there's a lot of like experiences and services and other things that would make their stay more special. And it would even include things they wouldn't think to search for. And from there, we're just going to keep expanding and we're going to expand out to more host services to enable them to become better host. And then eventually, we'll move further and further away from our core.

I think like maybe the analogy of Amazon is a really good one, which is to say, they started with books. The nearest adjacency to books was DVDs and CDs back when people bought physical media. And then they went to like, I don't know, maybe toys and other things. And eventually they end up at fashion and pretty soon they were doing things pretty far adjacent from media and books. So we're going to probably follow that path.

So we're going to really, really start adjacent to travel. And part of the reason why is a traveler booking a home, what else would they want to book? And the other great thing is that we offer these other experience and services that could potentially bring in new guests that then book more homes at Airbnb. And I think one of the ultimate goals is you know, Airbnb is used by like, I think 1,600,000,000 devices a year. So it's got a pretty big volume of users, but we're not very we're not a very frequently used app.

People typically use this once or twice a year. And I would love for Airbnb one day for people to use this once or twice a week. And so that's kind of one of the goals over the long term.

Great, Brian. Let me, Brian, let me talk a little bit about margins over the course of the year. So to restate, or just to reiterate the guidance that we provide for the full year, we're going to invest $250,000,000 in terms of launching and scaling the new businesses. We anticipate that the negative impact to margin from those investments will be heavily weighted in Q1 through Q3, whereas the revenue obviously won't pick up until we've launched those new products at the end of Q2. And so we would assume that the benefit from that lift would really be concentrated in terms of our exit rate of Q4.

But more broadly, I think the takeaway from our guide is that even with that investment level, we're obviously maintaining extremely strong, healthy margins for our core business. And obviously, the global floor on EBITDA gets you to that number. I think in terms of the general question of comps, I think the most notable comp, I would say noise is what we described in the letter with regard to Q1. It's obviously in the letter, but just to restate it here, Q1 revenue will be heavily impacted by both the FX headwinds as well as the calendar changes vis a vis or relative to 2024. That will impact not just revenue, but also Q1 EBITDA.

We've called that out in the letter, just to highlight that absent those pieces, Q1 EBITDA margins would actually be relatively flat.

Our next question will come from the line of Ron Josey at Citi. Please go ahead.

Great. Thanks for taking the question. Brian, I wanted to ask a little bit more on the here and now. In the letter, you talked about recent product enhancements around search and better merchandising. I'd love to hear your thoughts on what you're finding, what you're seeing with search and merchandising and learnings there to help inform these newer experiences and products that are coming down the pike?

And then the next question is just on Knights and experiences both of the acceleration this quarter. Talk to us about the contribution between just the broader travel market being relatively healthy and these newer products that are launching, like co hosting or experiences or the next nine? Thank you.

Yes. Hey, Ron, I'll take the first. So yes, when you think about the here and now, we called this out in our letter really around product optimizations. And Ron, I'll kind of just let us start like three parts. Step one, people come to Airbnb.

It's really we have a huge amount of traffic. We have nearly 5,000,000,000 visitor, unique 5,000,000,000 visitors a year. And so it's really important that, like, when people come to Airbnb, they they are able to find the right Airbnb for them. So we've done a lot around, like we introduced a personalized welcome tour. Again, people use Airbnb only a couple of times a year, so it's really important to orient them.

So we've got this welcome tour that's personalized to every person. Based on your past searches, we suggest destination that we think you're going to be interested in. Based on past filters, we offer up those filters as potentially like quick filters to apply. We've also found that, this is probably obvious, but our mobile app converts significantly higher than our mobile website. And so we've been pushing to get more people to download our mobile app.

And now in Q4, mobile bookings represented 60% of our overall bookings, up from I think 55% the year before. Our checkout page, this sounds like a simple thing, but the checkout page, the page to pay, not to check out Airbnb, the page to pay. It was really, really long. And we found that if you make it shorter, simpler, that leads to a massive increase in conversion. Now I'm just giving you a couple examples.

There's really a long list of dozens and dozens of things. And again, a 100 basis point increase on a GBV of $80,000,000,000 you're going to be soon approaching like $100,000,000 optimizations just one at a time for some of these really, really big efforts. So once you find an Airbnb, it's important that Airbnb is affordable and affordability is in our DNA. So we've made a lot of improvements around affordability that have also increased optimization, like showing the total price display. When guests toggle on total price display, that includes all fees, including cleaning fees.

We see that people are booking higher value Airbnbs. We've also created a lot of tools for hosts, whether it's monthly and weekly monthly discounts, price tips, search tips. All these things are essentially efforts to make Airbnb more affordable and it's working because during 2024, hotel prices were up year over year while comparable Airbnb listings were down year over year in price. So we're making progress. And the last thing is if you find the Airbnb is a good price, it's still really important that it's of high quality.

For every person who books an Airbnb, about nine people book a hotel. And so if we do around 500,000,000 nights a year and we got the extra hotel guests to use Airbnb, we go from 500,000,000 nights to a billion room nights. So that's a really, really big opportunity. And we think the number one way to do that is to improve the reliability and quality of our service, especially our host. So the way to do that is elevate the best and cut the bottom.

So we introduced guest favorites in October 2023. It's now gotten two fifty million nights booked. If you book a guest favorite, customer service rates are down, trip issues are down, guest net promoter is up, cancellations are down. So it's really great. We also, since April 2023, we instituted a new host quality system and removed 400,000 listings that don't meet or meet don't meet our guest expectations.

So Ron, those are essentially the three levers. We have usability, making it easier for people to find the listing by increasing conversion, affordability, getting prices to be better and more competitive, and then reliability and quality of the service. So again, we've made hundreds of updates over the past few years on these, but these are just a couple callouts.

And Ron, to ask your question in terms of quantifying the Q4 demand, I would say, obviously, we benefited from organic tailwinds across the industry. But in addition to that, all of the product optimizations that Brian shared, from our testing of those improvements, we estimate the exit rate growth rate for our business was listed by a couple of hundred basis points, due to those improvements. And we see it through improvements in our booking conversion.

Our next question will come from the line of James Lee at Mizuho. Please go ahead.

Great. Thanks for taking my questions. I'm sorry, I joined the call a little bit late, so I apologize my question has been repeated. Two questions here. One on experiences, can you guys talk about maybe some of the frictions you're able to resolve in the upcoming launch?

And any indication that you can give us on the confidence of successful launch this time? And secondly, I just want to double click on Brian's commentary on Beyond the Accord. Are you thinking about maybe some sort of concierge service, meaning like grocery shopping, access to spa, to gym, maybe some kind of access to recreation? Is that what we should think about when we think about adjacency to travel? Thanks.

Yeah, I can handle this. Hey, James. So frictions we want to resolve with experiences. Let's ask, what were some of the challenges the first time around? Well, the first time around, I don't think we integrated experiences really well into the products.

If you go to airbnb.com or app right now, it's pretty hard to find them. The second thing is that when you find the experiences, I don't think they were merchandised as compellingly as they could. Third, there weren't really a lot of integrations with social media. I think social media is a great distribution channel. And fourth, I think we are completely rethinking the kind of supply we're going to have.

I think it's going to be really, really compelling. And then fifth, we didn't really market it that much. And I think this time, we're going to be a bit more aggressive in marketing then because we're really proud of the quality

have. Confidence of how successful launch is going to be, I want to be measured in my response because this is a second shot at it. I am extremely confident that this product is going to be incredibly, incredibly compelling though. And so I think if people give it a shot, I think they're going to be really in love with the product because people really do actually like the current Airbnb experiences. And I think this one's going to be significantly better.

I probably won't say much more. Tune in in May and we're going to like, you know, I'll walk you through the entire product and the product launch. As far as adjacencies, yes, I mean, there are dozens and dozens. I mean, if you got really granular hundreds of opportunities, endless. We could spend many, many years taking all the adjacencies to be able to travel somewhere and list them.

Remember, like, 70% to 80% of our nights booked are longer term stays of more than thirty days. And that's going to become an even greater share of our business, I think, down the road. And so if you think about what all the servers need to travel or live somewhere, there's a lot of opportunities. Now the key is not to do them obviously all at once to prioritize, to pick the most differentiated services, guests want the most, that are the most compelling, the opportunities from a business standpoint and just start from there. So we're not going to go into too many more details, but stay tuned.

Our next question will come from the line of Jed Kelly at Oppenheimer. Please go ahead.

Airbnb (ABNB) Q4 2024 Earnings Call Transcript

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