Airbnb's loss doubled in the first quarter of 2019
At the same time, a CNBC source reports that the company has more than US$3 bln on its balance sheet.
The information received financial indicators of the popular worldwide service for short-term rental accommodation Airbnb and concluded that in the first quarter of 2019 the company's loss doubled in comparison with the same period in 2018. The company's operating loss amounted to $306 million.
In 2019, Airbnb's revenue continued to grow rapidly, most recently to $839 million, up 31% year-on-year. At the same time, the company's expenses also continue to grow and have increased by 47% over the past year.
As for the second quarter of 2019, revenue showed even greater growth, exceeding US$ 1 billion. This year the company should earn between US$ 4.6 billion and US$ 5 billion in revenue and spend more than US$ 1.1 billion on the advertising of its services, according to the publication.
Every day, Airbnb increases its marketing and promotion spending, this year it has risen up to 58%. Certainly, such large investments will provide the company with an even greater flow of clients and create a favorable environment for business growth, but such expenditures are already beginning to worry investors, especially in
in the run-up to the IPO, as Airbnb is already planning an initial public offering in 2020.
The Information was unable to receive comments from Airbnb representatives. It was only noted that the company actively invested in homeowners and their guests in 2019.
In response to The Information's publication, CNBC source noted that Airbnb is in very good shape, the company has over $3 billion on its balance sheet and a credit line of $1 billion.