Airbnb, Inc. Q2 FY2025 earnings call

Perfecting Core Service

• Made improvements to checkout, messaging, merchandising, and payment options to increase revenue.
• Expanded AI customer service agent in the U.S., reducing human agent contact by 15%.

Accelerating Global Markets Growth

• Expansion markets nights booked grew at twice the rate of core markets for 6 consecutive quarters; Japan saw growth with brand campaign and partnerships like Tour de France, Lollapalooza, IOC, and FIFA World Cup.

Expanding Beyond Stays

• Launched services and reimagined experiences; new app makes it easier to book homes, services, and experiences. Guest ratings for services/experiences are 4.93 stars vs. 4.8 for homes. Over 60,000 people applied to host services/experiences.

Airbnb had 134 million nights and seats booked in Q2, up 7% year-over-year. Revenue was $3.1 billion, up 13% year-over-year. Adjusted EBITDA was $1 billion, a 34% margin. Regionally, Latin America grew in the high teens, Asia Pacific in the mid-teens, EMEA in the middle single digits, and North America in the low single digits. Nights and seats booked now include nights for stays as well as seats for services and experiences.

Q3 Outlook

• Expected revenue $4.02 billion to $4.1 billion, +8%-10% y/y; nights and seats booked to grow similarly to Q2; adjusted EBITDA >$2 billion, margin lower due to investments in new growth and policy initiatives.

Full Year 2025

• Continue to expect adjusted EBITDA margin of at least 34.5%, with approximately $200 million invested in new businesses in 2025.

• Factors from forward-looking statements, including economic uncertainty, competition, and regulatory changes that could materially affect actual results.

Q: About Airbnb Experiences, what's the attach rate goal?

A: Brian mentions they're looking at attach rate, focusing on perfecting supply, increasing entry points, and raising awareness. They're bullish on potential, focusing on key cities like Paris.

Q: On guidance, what's the headwind from events like Paris Olympics?

A: Elinor Mertz says Q3 comps are against a softer period last year, but Q4 will face tougher year-over-year comps. Expansion markets like Brazil, Japan, Germany are growing, diversifying the business away from North America.

Q: On marketing for services and experiences, how is spend managed?

A: Brian says they market the bundled offering of homes, services, and experiences, shifting from TV to social media for more targeted ads. Elinor adds the $200 million investment is focused on field operations and supply acquisition, not increased programmatic spend.

Q: On building inventory for experiences, how is quality managed?

A: Brian says they vet every experience, resulting in an average rating of >4.93 vs. 4.8 for homes. They use third-party vendors and vet profiles, credentials, and certifications to ensure quality.