Airbnb: No Room for Error - Investing Daily : vimarsana.com

Airbnb: No Room for Error - Investing Daily


Investing Daily
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It isn’t easy to do, but sometimes a business will lose more money than it brought in as revenue. That’s what happened to
Airbnb (NSDQ: ABNB) during the first quarter of this year. The company lost $1.17 billion dollars, which equates to 132% of its gross revenue.
In this case, Airbnb took substantial write-downs during the quarter. Those items included $377 million to pay off debt and $292 million in adjustments to warrants. The company also incurred a $113 million impairment related to office space.
If you back out those one-time expenses, the quarter actually wasn’t so bad. Airbnb is still operating at a loss, but its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was only 7% less than revenue compared to shortfalls of 40% in 2020 and 30% in 2019.

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