Airbnb, Inc. Q3 FY2025 earnings call

• Airbnb had a strong Q3 with revenue up 10% y/y, adjusted EBITDA over $2B (highest ever). Gross booking value up 14%, nights/seats booked up 9%.
• Growth levers: Made 65 major improvements to service, including Reserve now Pay Later in US, improved maps with landmarks, transit, etc., and updated cancellation policy. Expanded internationally with average nights booked in expansion markets growing double core markets. Expanded offerings: Service experiences with 4.3/5 rating, half of experience bookers had no prior Airbnb stay; launched hotels in Airbnb with pilots in LA, NYC, Madrid. Integrated AI extensively, including smarter AI customer support and testing AI-powered search.
• Ellie Mertz noted Q3 financials: Revenue $4.1B, adjusted EBITDA $2.1B, net income $1.4B, EPS $2.21. Free cash flow $1.3B in Q3, $4.5B over 12 months.

For the third quarter of 2025, Airbnb's revenue was $4.1 billion, up 10% year-over-year. Adjusted EBITDA was $2.1 billion, a 50% EBITDA margin. Gross booking value grew 14% year-over-year to $22.9 billion. Nights and seats booked increased 9% year-over-year. Revenue contribution is from the overall Airbnb platform as no distinct product segments were detailed separately.

• Q4 revenue expected $2.66B - $2.72B, y/y growth 7%-10%.
• GMV expected low double digits y/y, driven by modest ADR increase and nights/seats booked growth.
• Q4 nights/seats booked expected mid-single-digit growth y/y.
• Full year 2025 adjusted EBITDA margin expected ~35%, up from prior 34.5% floor.
• 2026 outlook to be shared in February earnings call.

Forward-looking statements involve risks and uncertainties where actual results may differ materially from projections. These factors are described in the shareholder letter and SEC filings, and Airbnb undertakes no obligation to update information to reflect subsequent events.

Q: Richard Clarke asked about the percentage of acceleration in the US from Reserve now Pay later, cancellation rates, and other payment tools.

A: Ellie Mertz responded that ~70% of offered Reserve now Pay later take it, there are increased cancellations but net impact is positive, and they continue to explore payment tools.

Q: Eric Sheridan asked about duration of execution and depth of investment in international markets.

A: Ellie Mertz said each market takes different time, but Latin America shows success, Japan is in earlier stages with progress.

Q: Justin Post asked about events and experiences contribution and retention.

A: Brian Chesky said half of experience bookers have no prior Airbnb stay, originals in Paris 70% booked by locals, takes 3-5 years to be material, and services promote homes.

Q: Jed Kelly asked about layering on hotels.

A: Brian Chesky said hotels are promising, pilots in LA, NYC, Madrid, different use cases from homes, supplement supply in constrained markets.

Q: Kevin Kopelman asked about 2026 initiatives.

A: Brian Chesky said expect new businesses, testing in pilot markets, and segments like high ADR are promising.

Q: Ron Josey asked about AI search and experiences milestones.

A: Brian Chesky talked about AI customer service success, testing AI search, and experiences milestones based on guest types in cities.

Q: Trevor Young asked about remaining pain points.

A: Brian Chesky mentioned more payment flexibility, quality, pricing tools for hosts, maps, etc., with no silver bullets, just continuous improvements.

Q: Lee Horowitz asked about 2026 investments and core business maturity.

A: Ellie Mertz said 2026 has ongoing investments in growth initiatives, Brian Chesky said core business not mature, with opportunities to reaccelerate.

Q: Doug Anmuth asked about ChatGPT integration.

A: Brian Chesky said integration wasn't ready yet, but open to future integrations with principles of custom and unique presentation.

Q: Ken Gawrelski asked about reaccelerating business and AI search.

A: Brian Chesky talked about reaccelerating core business due to larger potential market, and AI search is part of evolving landscape, open to third-party apps but mindful.

Q: Colin Sebastian asked about impact on other initiatives.

A: Brian Chesky said new testing paradigm allows parallel testing of initiatives like loyalty and advertising, with AI search a priority.