Airbnb, Inc. Q4 FY2025 earnings call

• Rebuilt the tech platform and app, improving guest and host experience.
• Launched Project Hawaii to recreate innovation formula, focusing on improving booking process with small tweaks, search flexibility, and checkout flow redesign.
• Pricing initiatives: Showcased total price upfront, flexible cancellation policies, and Reserve Now, Pay Later, expanding globally.
• Supply growth: Leaned into large events like the 2024 Summer Olympics and 2026 FIFA World Cup, removed low-quality listings, and saw guest favorites grow 30% in 2025, making up nearly half of Q4 bookings.
• International growth: Focused on priority countries like Brazil, moving it from a top 10 to top 5 market, leveraging local execution and cultural moments.
• New businesses: Expanded services experiences, tested new services like grocery delivery, and brought boutique/independent hotels onto the platform for a more comprehensive trip experience.
• AI integration: Built custom AI agent for customer support, resolving 1/3 of issues, with plans to roll out globally and use AI for trip planning and operational efficiency.

In Q4, Airbnb's revenue grew 12% year-over-year to $2.8 billion. Gross booking value (GBV) grew 16% year-over-year to $20.4 billion. Nights and seats booked increased 10%. By region, Latin America grew in the high teens, Asia Pacific in the mid-teens, EMEA accelerated in the high single digits, and North America grew in the mid-single digits. Revenue contribution details weren't provided in absolute percentages but the financial performance across these segments was highlighted.

• Expect revenue growth to accelerate to at least low double digits in 2026.
• Anticipate adjusted EBITDA margins to be stable year-over-year.
• Q1 2026 revenue expected to be $2.59 billion to $2.63 billion, representing 14%-16% year-over-year growth, including ~3-point FX tailwind.
• Full year 2026 revenue growth expected to accelerate, with healthy demand and execution across growth initiatives.

• Travel influenced by macroeconomic conditions, currency fluctuations, and global events which can impact results.
• Risks associated with forward-looking statements and potential material differences between actual results and implied statements due to various factors described in shareholder letters and SEC filings.

Q: Richard Clarke from Bernstein asked about why AI platforms couldn't launch a short-term rental platform and risk of sharing economics.

A: Brian Chesky responded that Airbnb has unique elements like host app, payment handling, customer service, verified IDs, and unique inventory. Chatbots are top-of-funnel and Airbnb can post-train AI models using their interactions.

Q: John Colantuoni from Jefferies asked about Asia region growth slowdown and services/experiences acquiring new customers.

A: Ellie Mertz said APAC growth is stable with opportunities in specific markets like domestic Japan and India. Services/experiences provide new guest segments and higher frequency usage.

Q: Lee Horowitz from BofA asked about Reserve Now, Pay Later cancellations and AI search impact on sponsored ads.

A: Ellie Mertz said cancellations were tested and within expected, and Brian Chesky noted AI search is being tested with rapid iteration for sponsored listings design.

Q: Doug Anmuth from JPMorgan asked about 2025 revenue acceleration drivers and AI impact.

A: Ellie Mertz said growth drivers include Q4 launches, incremental supply, and expansion markets, with AI pilots ongoing but no baked-in outlook.

Q: Lloyd Walmsley from Mizuho asked about hotel connectivity and inventory aperture.

A: Brian Chesky said they're opening the aperture with boutique/independent hotels for personalization, and Ellie Mertz discussed hotel growth momentum.

Q: Justin Post from Bank of America asked about repeat rates, customer service, and U.S. room night growth.

A: Brian Chesky said repeat rates are strong due to guest satisfaction, customer service NPS is high, and Ellie Mertz noted U.S. momentum is positive.

Q: Mark Mahaney from Evercore ISI asked about hotel impact on revenue and Q1 take rate.

A: Ellie Mertz said hotels are growing but take time, and Q1 revenue growth is due to FX, lead times, and timing.

Q: Jed Kelly from Oppenheimer asked about leaning into brand hotels.

A: Brian Chesky said they're starting with boutiques and independents.

Q: Kevin Kopelman from TD Cowen asked about new commission structure for PMS connected hosts.

A: Ellie Mertz said migration to single service fee improved pricing and guest affordability.

Q: Ken Gawrelski from Wells Fargo asked about loyalty and product release cadence.

A: Brian Chesky said product releases are now more iterative with continuous shipping, and they're testing unique loyalty programs.