Airbnb, Inc. reported a 10% increase in revenue to $3.7 billion for the third quarter of 2024 compared to the same period in the previous year. This growth was attributed to a rise in check-ins related to Nights and Experiences Booked and a modest increase in Average Daily Rate (ADR). However, net income saw a significant decrease of 69% to $1.4 billion, largely due to a $3.1 billion increase in income tax expense, which was primarily a result of the prior year's release of a valuation allowance on U.S. deferred tax assets and the recognition of deferred tax expense in the current year. Adjusted EBITDA for the quarter rose by 7% to $2.0 billion, driven by the same factors that increased revenue. The company's...Show More

Airbnb, Inc. reported a 10% increase in revenue to $3.7 billion for the third quarter of 2024 compared to the same period in the previous year. This growth was attributed to a rise in check-ins related to Nights and Experiences Booked and a modest increase in Average Daily Rate (ADR). However, net income saw a significant decrease of 69% to $1.4 billion, largely due to a $3.1 billion increase in income tax expense, which was primarily a result of the prior year's release of a valuation allowance on U.S. deferred tax assets and the recognition of deferred tax expense in the current year. Adjusted EBITDA for the quarter rose by 7% to $2.0 billion, driven by the same factors that increased revenue. The company's cash flow from operations was $1.1 billion, a slight decrease from $1.3 billion in the same quarter of the previous year. Airbnb also repurchased 8.7 million shares of Class A common stock for $1.1 billion, with $4.2 billion remaining available for repurchases under its share repurchase program. In terms of business development, Airbnb continues to focus on international expansion, with the strongest growth percentages in Asia Pacific and Latin America. The company is also under examination by the IRS for the 2013, 2016, 2017, and 2018 tax years, with a potential $1.3 billion in tax, plus penalties and interest, being contested. Looking ahead, Airbnb anticipates paying additional federal taxes in 2024 due to the Corporate Alternative Minimum Tax (CAMT) but expects these to be offset by tax credits in subsequent years.