Airbnb : Earnings Documents

Q1 2022

Shareholder Letter

Q1 2022
Nights and Experiences Booked	102.1M
In Q1 2022, Nights and Experiences Booked surpassed
pre-pandemic levels and exceeded 100 million for the first time	59% Y/Y
ever, driven by North America, EMEA and Latin America.	26% Y/3Y
Gross Booking Value (GBV)	$17.2B
Strong growth in Nights and Experiences Booked combined
with continued higher Average Daily Rates ("ADR") drove over	67% Y/Y
$17 billion of GBV in Q1 2022.	71% Y/Y (ex-FX)
73% Y/3Y
Revenue	$1.5B
Revenue of $1.5 billion increased by 80% from Q1 2019, and
by 70% from Q1 2021-demonstrating the strength of the travel	70% Y/Y
rebound.	74% Y/Y (ex-FX)
80% Y/3Y
Net Loss	$(19)M
Net loss was significantly improved from prior years due to strong
revenue growth combined with cost management and the absence	$(1.2)B Q1 2021
of certain one-time charges a year ago.	$(292)M Q1 2019
Adjusted EBITDA*	$229M
We achieved our first positive Q1 Adjusted EBITDA,
demonstrating the continued strength of the business	$(59)M Q1 2021
and discipline in managing our cost structure.	$(248)M Q1 2019

* A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this letter.

Q1 2022 Shareholder Letter

Two years since the pandemic began, a new world of travel has emerged. Millions of people are now more flexible about where they live and work. As a result, they're spreading out to thousands of towns and cities, staying for weeks, months, or even entire seasons at a time. Through our adaptability and relentless innovation, we've been able to quickly respond to this changing world of travel. Now, two years into the pandemic, Airbnb is substantially stronger than ever before.

In Q1 2022, we exceeded 100 million Nights and Experiences Booked, our largest quarterly number ever. GBV of $17.2 billion and revenue of $1.5 billion in Q1 2022 were both more than 70% higher than pre-pandemic Q1 2019 levels. And through our focus and discipline, we delivered $229 million of Adjusted EBITDA, $1.2 billion of net cash provided by operating activities and $1.2 billion of free cash flow in the quarter.1

May 11: Airbnb 2022 Summer Release

Our culture of relentless innovation has allowed us to respond to this moment. In 2021, we introduced more than 150 upgrades across every aspect of the Airbnb service. On May 11, 2022, we will introduce a new Airbnb for a new world of travel.

1 A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this letter.

Searching for travel online has worked the same way for the past 25 years: you enter a location and dates into a search box. But the world has changed. Millions of people are more flexible about where and when they can travel. With homes in over 100,000 towns and cities, Airbnb opens up a world of possibilities.

To help guests discover these possibilities, we're introducing the biggest change to Airbnb in a decade. With a completely new way to search, guests will be able to discover millions of unique homes they never thought to search for. And when they book, guests will have the confidence of knowing that Airbnb has their back each step of the way. To learn more, join us at airbnb.com/2022-summer on May 11, 9 a.m. EDT.

Q1 2022 Financial Results

Here is a snapshot of our Q1 2022 results:

• • Q1 revenue of $1.5 billion grew 70% year over year. It also exceeded pre-pandemic Q1 2019 revenue by 80%. The strong revenue growth was driven by the combination of growth in Nights and Experiences Booked, and continued strength in ADR, despite the ongoing pandemic, the war in Ukraine, and macroeconomic headwinds.

• • Q1 net loss of $19 million significantly improved from both Q1 2019 and Q1 2021. Net loss in Q1 2022 improved by $273 million compared to Q1 2019 primarily due to our revenue growth and cost management, partially offset by our investment in product development. Net loss in Q1 2022 also improved by $1.2 billion compared to Q1 2021 due to higher revenue combined with cost management and the absence of certain significant charges in Q1 2022.

• • Q1 Adjusted EBITDA of $229 million was our first profitable Q1. Adjusted EBITDA in Q1 2022 of $229 million was a significant improvement from losses in both Q1 2019 and Q1 2021. Adjusted EBITDA margin was 15% for Q1 2022. This substantial improvement in Adjusted EBITDA demonstrates the continued strength of our business and discipline in managing our cost structure.2

• • Q1 free cash flow exceeded $1 billion. Q1 2022 net cash provided by operating activities was $1.2 billion, up from $618 million in Q1 2021. Free cash flow of $1.2 billion was an all-time high, up from $611 million in Q1 2021.3 The year over year increase in free cash flow was driven by revenue growth and margin expansion, as well as seasonal bookings growth driving increased unearned fees.

Business Highlights

The travel recovery that began in 2021 has accelerated into Q1 2022. Despite global headwinds in the quarter, Nights and Experiences Booked surpassed pre-pandemic levels and exceeded 100 million for the first time ever, demonstrating strong global demand for travel.

This incredible start to 2022 was driven by a number of positive business trends:

2, 3 A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this letter.

• • Guests are booking more than ever before. In Q1 2022, gross nights booked grew 32% compared to Q1 2019 despite ongoing pandemic concerns, the war in Ukraine, and macroeconomic headwinds. People are becoming increasingly confident in booking travel further in advance, with lead times even surpassing 2019 levels by the end of Q1. Looking ahead, we see strong sustained pent-up demand. As of the end of April 2022, we had 30% more nights booked for the summer travel season than at this time in 2019, and the growth from 2019 is higher the further we look out this year.

• • Guests are returning to cities and crossing borders. At the beginning of the pandemic, guests preferred to travel to non-urban destinations close to home. We continue to see this trend persist with Q1 2022 non-urban gross nights booked increasing 80% compared to

  Q1 2019. Domestic gross nights booked also increased 65% compared to Q1 2019. At the same time, guests are returning to cities and crossing borders once more. Gross nights booked to high-density urban destinations grew 80% compared to Q1 2021, exceeding pre-pandemic Q1 2019 levels, and gross nights booked for cross-border travel more than tripled from Q1 2021, returning to near pre-pandemic Q1 2019 levels.

• • Guests are staying longer, even living on Airbnb. While short-term stays rebounded strongly in Q1 2022, long-term stays of 28 days or more continue to be our fastest-growing category by trip length compared to 2019. Long-term stays are at an all-time high, more than doubling in size from Q1 2019.

• • Our innovations are inspiring guests to discover thousands of new places. We believe our product is shifting how guests search and book for travel. Since we introduced I'm Flexible last year, the feature has been used over 2 billion times and we believe has helped distribute guest demand more widely. Guests who use I'm Flexible are more likely to book in less popular places.

• • Our Host community continues to expand. Destinations with the strongest demand are showing the most supply growth, with non-urban active listings growing 21% in North America and 15% globally, compared to Q1 2021. And as demand returns to cities, we are also seeing a return to growth in total urban supply. Our innovations, including our new Host onboarding flow and our Ask a Superhost program, are further supporting this growth and helping new Hosts be successful. New listings that were activated and booked in Q1 2022 are getting booked faster compared to a year ago, with the average time to get a first booking for the majority of new listings being about a week.

Ukraine: The power of our community

Over the past few months, millions of lives have been devastated by the unfolding scenes of violence in Ukraine. This conflict has produced one of the largest humanitarian crises since World War II. Through our platform and the generosity of our Hosts and donors, Airbnb and Airbnb.org have been supporting displaced people for almost a decade, providing them with temporary housing around the world.

On February 28, Airbnb and Airbnb.org announced that Airbnb.org would offer free, temporary housing for up to 100,000 refugees fleeing from Ukraine. Airbnb.org has been working to establish partnerships with international and regional nonprofits active on the ground, who are coordinating stays for refugee guests, regardless of nationality, race, ethnicity, or how they identify.