Airbnb, Inc. earnings

Management highlights

- Product updates: Expanded Reserve Now Pay Later to more markets, redesigned cancellation policies, migrated API host to a single service fee. - Expansion of offerings: Piloting new services, scaling experiences, expanding partnership with Delta Airlines, scaling boutique and independent hotel pilot. - Using big events: Leveraging big events like the Winter Olympics and World Cup to drive business, bringing on new hosts, strengthening relationships. - AI: Nearly 60% of code written by AI, over 40% of customer support issues resolved without human agent, cost per booking decreased about 10% year over year in Q1.

Guidance

- Raised guidance for 2026, expecting year-over-year revenue growth to accelerate to low to mid-teens and adjusted EBITDA margin to be at least 35%. - Q2 outlook: Expect to generate revenue of $3.54 billion to $3.6 billion, year-over-year growth of 14% to 16%, GBV to increase in the low double digits, nights and seats booked growth to decelerate slightly due to Middle East conflict headwind, adjusted EBITDA and margin to be up year-over-year.

Segment performance

Revenue grew 18% year-over-year to $2.7 billion. Gross booking value grew 19% year-over-year. Nights and seats booked grew 9% after accounting for an approximate 100 basis point headwind for the conflict in the Middle East. Nights booked on the app grew 22% year-over-year and account for 63% of total nights booked. First-time bookers' growth accelerated to 10%, with strong acceleration in Brazil, Japan, and India. Net nights for expansion markets grew at roughly twice the rate of core markets. ADR increased 9% year-over-year, or 4%, excluding the impact of FX, with noticeable strength in North America. Three features (broader expansion of Reserve Now Pay Later, updates to cancellation policies, migration of Certain Hope to a simplified fee structure) delivered approximately three points of nights booked growth and approximately four points of GBV growth in Q1.

Analyst Q&A

• Q: On app room nights growth and team structure for AI.

  A: App growth due to aggressive app promotion, notifications, email hooks, app store ranking. Team structure for AI: Move at speed of AI, everyone hands-on, data democratized, 60% code by AI. -

• Q: Delta partnership and loyalty/air ticket ambitions.

  A: Delta partnership doesn't negatively impact take rate, flights and loyalty on table, best loyalty is people loving product. -

• Q: Hotel product trends and AI search learnings.

  A: Hotel experience different from other OTAs, commingling vs tabs, testing carousels, personalization. AI search: Focused on bottom funnel, made progress in customer service, mid-funnel with AI summaries, top funnel testing, chatbots not ideal for travel/e-commerce. -

• Q: World Cup booking patterns and supply.

  A: World Cup to be largest event, booking activity close to games, 100,000 new listings in host cities, half retained post-event. -

• Q: Core accommodation supply and AI role.

  A: Core accommodations in host API partners and primary homes/vacation homes, AI helps with host API tools and primary home listing. -

• Q: Reserve Now Pay Later expansion and adoption.

  A: Launched in U.S., expanded globally, material lift to gross bookings, net impact positive. -

• Q: Hotel kinks and competition.

  A: Continued roadmap for hotel tools, front-end merchandising, compete by lowest price, best merchandising, converting existing traffic. -

• Q: First-time bookers and expansion markets.

  A: Driven by expansion markets and Gen Z, localized marketing, product tailoring. -

• Q: Revenue growth confidence and payment innovations.

  A: Confidence from growth initiatives, EBITDA margin due to momentum, P&L management, payments roadmap with multiple projects. -

• Q: Hotel hurdles and ancillary revenue.

  A: Hotels constrained by optimization execution, ancillary revenue through ecosystem of services, adding various offerings.