Though the coronavirus pandemic has upended travel around the globe, the home-rental industry has bounced back faster than the hotel industry, aiding Airbnb in its upcoming initial public offering.
In September, FOX Business reported the home rental platform saw a huge demand for its bookings amid the pandemic, seeing an average 32% week-over-week growth from April 27 to the beginning of June.
The surge continued into July and August, despite hotel companies such as Hilton Worldwide and Marriott not seeing the same bounce back.
“Airbnb spending in July was up 22% over the previous July, and spending the week of August 17 was 75% higher than the equivalent week in 2019,” FOX Business reported, citing data from Edison Trends.
Here are a few facts to know about Airbnb’s upcoming IPO, compiled by FOX Business.
Roughly $3 billion.
In August, news outlets reported that the home-sharing platform would seek to raise approximately $3 billion in the offering, which would value the company at approximately $30 billion.
CEO Brian Chesky.
Chesky, 39, has made some difficult decisions in 2020, notably his call earlier this year to “dramatically” cut costs by laying off 1,900 of its 7,500 employees in order to weather the pandemic.
“While we know Airbnb’s business will fully recover, the changes it will undergo are not temporary or short-lived,” Chesky told employees at the time. “Because of this, we need to make more fundamental changes to Airbnb by reducing the size of our workforce around a more focused business strategy.”
Not there yet.
According to Bloomberg, Airbnb’s most recent quarterly revenue was $335 million, a decline of 67% year-over-year.
It generated $4.8 billion in revenue last year, though it lost $322 million during the first nine months of 2019.
However, the company did have positive EBITDA in 2017 and 2018.
Earlier this year, hedge fund honcho Bill Ackman reportedly approached Airbnb about going public via a special acquisition company, but the San Francisco-based company said it was pursuing an IPO via traditional methods.