Remote working and longer stays drive earnings surge for AirbnbBlathnaid O’Deaon May 4, 2022 at 09:37 Silicon RepublicSilicon Republic

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Airbnb’s bottom line has benefitted considerably from remote working, its latest earnings report shows. The company is seeing an uptick in guests booking longer stays as they use properties registered on the platform as a base for remote working.

“Millions of people are now more flexible about where they live and they work,” according to Brian Chesky, Airbnb CEO. “We’ve been able to quickly respond to this changing world of travel.”

Chesky also recently announced via a company-wide email that all Airbnb employees could live and work from anywhere from September 2022. They will be able to relocate anywhere in the country they are living in and their compensation will not change. Staff will have to retain a permanent address for payroll and tax purposes, however.

In a shareholder letter regarding its Q1 2022 earnings, Airbnb revealed that nights and experiences booked through the platform had surpassed pre-pandemic levels and exceeded $100m (to $102.1m) for the first time ever. This surge was driven by North America, Latin America and EMEA. It represents a 59pc year-on-year increase and a 26pc increase from 2019, or pre-pandemic.

The company’s gross booking value grew to $17.2bn, representing a 67pc year-on-year increase and a 73pc increase since 2019. This growth was driven by the increase in nights and experiences booked as well as the continued higher average daily rates.

Overall, Airbnb pulled in a revenue of $1.5bn, achieving its first positive Q1 adjusted EBITDA of $229m this year. Its revenue increased by 80pc since the first quarter of 2019 and 70pc from the first quarter of 2021, showing that travel restrictions and working from home has helped the company’s financial growth.

On an earnings call, Chesky said he reckoned that the pandemic had accelerated the adoption of longer term stays, “certainly by several years.”

“As long as we believe in a world where people continue to dial in on Zoom…we’ll see continued sustained growth in stays of longer than a month and stays of longer than a week,” he added.

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