Airbnb said Thursday that it raised $ 834 million in record revenue in the third quarter as more people were vaccinated and returned to travel.
When companies closed offices in response to the COVID-19 pandemic, it allowed some employees to work remotely using video technology, and Airbnb said the result was a huge leap in rent.
The San Francisco-based home-sharing company said in a letter to shareholders that it believes the trend towards flexibility will continue to intensify. Airbnb noted that large companies, including Ford and Amazon, have announced policies to allow more remote work and predicted others will do the same.
These changes in work habits, fueled by video conferencing technology, have helped extend the length of stay on Airbnb. The company said the number of days of stay of 28 days or more was on the rise even before the pandemic, but that it increased at a faster pace in the past year. Long stays now account for 20% of Airbnb nights booked in the last quarter, up from 14% two years ago.
Airbnb said its net income nearly quadrupled the $ 219 million it earned a year earlier and nearly tripled the $ 267 million reported in the third quarter of 2019.
Revenue grew 67% year-over-year and 36% year-over-year to $ 2.24 billion. Analysts were expecting $ 2.06 billion, according to FactSet.
However, the number of cancellations remained higher than it was before the pandemic.
The third quarter is usually the best for Airbnb. She often loses money in other quarters – the company lost $ 407 million in the first nine months of this year.
Airbnb reports that bookings in North America are up 10% and in Latin America up 20% from the same period two years ago. Bookings in Europe, the Middle East and Asia have yet to recover to 2019 levels, and businesses in the Asia-Pacific region remain depressed due to a slower recovery in international travel.
On the cost side, Airbnb’s sales and marketing spend more than doubled, and product development costs soared. The company is investing in a feature that helps customers book trips when they don’t have a specific destination or time in mind.
Airbnb Inc. rose about 1% after business hours after rising 3% to $ 178.45 in the regular session. They have gained 22% this year.