IPO

Eyeing IPO, Airbnb Asserts Back-To-Back Profitability

Airbnb, one of several tech giant companies potentially getting ready for an initial public offering (IPO) this year, said on Tuesday (Jan. 15) that it’s been profitable for two straight years, according to CNBC. Airbnb measures profits through earnings before interest, tax, depreciation and amortization (EBITDA).

The online marketplace and hospitality company, which began in 2008, said it will hit 500 million guests by the end of Q1. That means the company has had 100 million new bookings since it last counted in September. Those numbers, despite not being annual revenue, illustrate how rapidly the company is growing. In Q3 2018, the company said it surpassed $1 billion in quarterly revenue, and it was valued at more than $30 billion during financing rounds in 2016 and 2017.

CEO Brian Chesky hinted last May that he might be ready for an IPO with his company this year, but he wasn’t sure. Adding to the speculation is the fact that the company hired a new chief financial officer, Amazon executive Dave Stephenson, in November, a position that had been long vacant.

In a press release, Airbnb said that when building its executive team, it was looking for a CFO who believes in its mission and has the skills to help it grow. Stephenson was most recently CFO of Amazon’s worldwide consumer organization.

“Dave is one of the best financial operators in the world, and there’s no one better prepared to serve as our CFO,” Chesky said in the release. “I’m proud of everything we’ve achieved, but Airbnb is just getting started. In the years ahead, Dave will be Airbnb’s quarterback for long-term growth, driving us to be even more efficient and leverage what makes Airbnb unique to create new businesses and continue to expand.”

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