Airbnb, the home-sharing company that is expected to go public via an initial public offering (IPO) in 2019, saw more than $1 billion in revenue in the third quarter, according to a report offering the first glimpse into the company’s revenue.
CNBC, citing a memo Airbnb is expected to release, reported it is the first time the company has commented about its revenue in a public manner since its launch 10 years ago. With $1 billion in revenue, the third quarter was the strongest three-month period in Airbnb's history, CNBC said. A spokesperson for Airbnb told CNBC “we'll continue to provide updates regarding our work as we go forward,” but wouldn’t comment on profitability and data points.
One person close to the financials at Airbnb told CNBC that the company is on track to be profitable for the second year in a row as measured by earnings before interest, taxes, depreciation and amortization. In 2017 Airbnb had $100 million in profit on $2.6 billion in revenue, the unnamed source told CNBC.
The strong quarter comes even as Airbnb hasn’t had a chief financial officer since February. That was when Laurence Tosi left, raising questions about whether there would be a void in leadership to take Airbnb public. Tosi was well respected on Wall Street, reported CNBC. Airbnb Chief Executive Officer Brian Chesky said the firm should be ready for an IPO in the middle part of next year, but a timeframe has yet to be determined.
Airbnb has a valuation of $31 billion, making it the most valuable U.S. startup, noted the report. The potential IPO comes as competition is heating up with Expedia making a recent strategic move to take on Airbnb. In late October the Wall Street Journal reported Expedia purchased Pillow and ApartmentJet. The startups let owners of apartment buildings control short-term rentals.