Airbnb second quarter 2022 financial results
Today we issued our second quarter 2022 financial results. You can read the details here. Airbnb Co-Founder and CEO Brian Chesky said:
“The second quarter of 2022 demonstrates we have achieved growth and profitability at scale. Over the last year, we generated $2.9 billion in free cash flow and our Q2 revenue is up more than 70 percent since Q2-2019. Our strength this quarter is the result of our ability to stay focused and disciplined while continuing to relentlessly innovate.”
Q2 2022 financial results
Our Q2 results demonstrate that Airbnb has achieved growth and profitability at scale.
From a growth perspective, we exceeded 103 million Nights and Experiences Booked, our largest quarterly number ever. We generated $2.1 billion in revenue, growing 58% year-over-year (or 64% excluding foreign exchange). Our revenue and GBV are 73% larger than in Q2 2019. Since the beginning of the pandemic, Airbnb has significantly outperformed the rest of the travel industry.
From a profitability perspective, we had our most profitable Q2 ever with net income of $379 million—a nearly $700 million improvement from Q2 2019. We generated $795 million of FCF in the quarter—a nearly $1.1 billion improvement from the $(263) million FCF from the depths of the pandemic two years ago. More importantly, over the last twelve months, we’ve generated $2.9 billion in FCF, bringing our total cash balance to nearly $10 billion1.
What explains this massive transformation in our business?
First, our business model is adaptable. We have nearly every type of space in nearly every location, so however travel changes, we are able to adapt. And regardless of the economic environment, our guests come to Airbnb because they can find great value, and our Hosts can earn extra income.
Second, we’ve relentlessly innovated while also staying focused and disciplined. During the height of the pandemic, we made many difficult choices to reduce our spending, making us a leaner and more focused company. We’ve kept this discipline ever since, allowing our hiring and investment plans to remain unchanged since the beginning of the year. Airbnb is well positioned for whatever lies ahead.
In fact, we’re so confident in our long-term growth and profitability that today we are announcing a $2 billion share repurchase program.
Here is a snapshot of our Q2 2022 results:
- Q2 revenue of $2.1 billion grew 58% year over year. It also significantly exceeded Q2 2019 revenue by 73%. The strong revenue growth was driven by the combination of growth in Nights and Experiences Booked, and continued strength in ADR.
- Q2 net income of $379 million was our most profitable second quarter. Net income improved by $676 million compared to Q2 2019 primarily due to our revenue growth and expense discipline. In Q2 2022, we delivered a net profit margin of 18%, up from (5)% in Q2 2021 and (25)% in 2019, and $1.2 billion of net income in the last twelve months.
- Q2 Adjusted EBITDA of $711 million was more than triple Q2 2021. Adjusted EBITDA in Q2 2022 was a significant improvement from a loss in Q2 2019. Adjusted EBITDA margin was 34% for Q2 2022, up from 16% in Q2 2021 and (4)% in Q2 2019. This substantial improvement in Adjusted EBITDA demonstrates the continued strength of our business and discipline in managing our cost structure2.
- Q2 Free Cash Flow of $795 million was our highest Q2 ever. Q2 2022 net cash provided by operating activities was $800 million, up from $152 million in Q2 2019. The increase in cash flow was driven by revenue growth and margin expansion, as well as seasonal bookings growth driving increased unearned fees. Our TTM FCF was $2.9 billion, representing a TTM FCF margin of 39%3.
Our strong performance in Q2 2022 was driven by a number of positive business trends:
- Guest demand on Airbnb is as high as ever. Q2 2022 Nights and Experiences Booked of 103.7 million marked our highest quarterly number ever, up 24% compared to Q2 2019, despite macroeconomic uncertainties.
- Guests continue to return to cities and cross borders. Gross nights booked to high-density urban areas in Q2 2022 accelerated from Q1 2022, and once again exceeded pre-pandemic levels. We also saw gross nights booked for cross-border travel not only surpass pre-pandemic levels, but double compared to Q2 2021, demonstrating the tremendous recovery compared to last year.
- Guests continue to stay longer on Airbnb. In Q2 2022, long-term stays of 28 days or more remained our fastest-growing category by trip length compared to 2019. Long-term stays increased nearly 25% from a year ago and by almost 90% from Q2 2019.
- Guest demand is driving growth of our Host community. Active listings for non-urban destinations were up nearly 50% compared to Q2 2019, driven by continued demand for non-urban nights. And as demand returns to cities, we are also seeing growth in total urban supply. Overall, Nights and Experiences Booked grew 24% from Q2 2019 while active listings grew 23% in the same period, demonstrating how supply growth continues to meet demand.