Airbnb Posts $1.2 Billion Loss and Turns Attention to Expected Supply-Demand Mismatch
Photo Credit: Airbnb knows it is a strategic imperative to sign up more hosts. The living room at 19 Rausch Street in San Francisco, which the three Airbnb co-founders used to rent to conference attendees, and thus the Airbnb concept was born. Airbnb / Marc Olivier Le Blanc
Skift Take
Airbnb CEO Brian Chesky said the company expects to add millions of new hosts in the next few years, and it has plans to simplify the host signup process. But Airbnb has to be concerned that over the last six months that strategic growth imperative has been tough going.
After posting a $1.2 billion net loss in the first quarter while out-performing competitors on revenue and room night growth, Airbnb is heavily focused on a projected shortage of hosts and listings during a travel recovery this summer that it expects to be unparalleled.
While officials said Airbnb did not increase its host ranks in the first quarter compared to the fourth — officials characterized its active listings' numbers as "consistent" since the December quarter — the company believes it won't have enough hosts and properties to meet demand, especially in non-urban locations.
Airbnb's net loss in the first quarter was nearly $1.2 billion, which was impacted by one-time charges including debt repayment, and also stock-based compensation. That loss, which comes as many of its core urban markets and much of Europe still are subject to lockdowns, was nearly double the company's entire net loss in 2019.
Expedia Group's net loss in the first quarter was half of Airbnb's â€
