Airbnb goes public with a lack of $ 697 million in 2020 and “no path to revenue” | Tech Information

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We wrote about Airbnb again in Could after the holiday rental market reduce 25% of its workforce within the newest spherical of coronavirus-related layoffs affecting tech. “At the moment I’ve to verify that we’re lowering the variety of Airbnb staff,” stated co-founder and CEO Brian Chesky in a memo to all Airbnb staff.

Six months later, Airbnb recordsdata are launched. In a prospectus launched on Monday, Airbnb stated it plans to commerce on the Nasdaq below the image “ABNB”. The IPO announcement comes at a time when Airbnb goes by way of a tough interval and international journey is stalling. Simply previous to the filings, Airbnb had raised $ 2 billion in new debt, valued at $ 18 billion, and reduce prices throughout the corporate.

On account of its austerity measures, the home-sharing platform posted web earnings of $ 219 million on income of $ 1.34 billion within the final quarter. Nonetheless, these numbers may be deceiving. Up to now this yr the corporate has a web lack of practically $ 697 million on gross sales of $ 2.52 billion. The yr earlier than was no higher. In 2019, Airbnb recorded a web lack of $ 674 million on income of $ 4.81 billion.

“Our company should not transactions – they’re dedicated and contribute to our neighborhood,” the corporate stated in its prospectus abstract. “As quickly as they be a part of Airbnb, company actively take part in our neighborhood, frequently return to our platform to ebook once more, and advocate Airbnb to others who be a part of themselves. This requirement encourages new hosts to hitch, which in flip attracts much more company. It is a virtuous cycle – company entice hosts and hosts entice company. “

Based in 2008 by Brian Chesky, Joe Gebbia and Nathan Blecharczyk, Airbnb is a web-based neighborhood market the place individuals can listing, uncover and ebook lodging. Since its inception, Airbnb has raised a complete of $ 6.Four billion in funding over 22 rounds. Your final funding was raised from a secondary market spherical on June 3, 2020. The corporate was privately valued at $ 31 billion.


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