Airbnb unveiled papers for its initial public offering on Monday, showing that the home-sharing giant made a profit in the third quarter after the coronavirus pandemic forced it to overhaul its business and cut costs.
The company’s revenues for the three months ended September 30 fell 18% to $ 1.34 billion compared to the same period the previous year, as the pandemic continued to hurt bookings. But the big cost cuts, along with a slight increase in revenue from previous quarters, still pushed the company into a profit of $ 219 million. The Wall Street Journal reported last month that Airbnb will be profitable During the period.
Airbnb lost $ 697 million during the first nine months of the year, more than double what it lost in the same period last year, underlining the toll from the health crisis. Revenue decreased 32% over the nine-month period.
The home-sharing platform’s resurgence to profitability and moving forward with an imminent public offering shows how unpredictable – but ultimately portable – this year has proven for some companies. When the pandemic first swept China and then the world, travel companies like Airbnb faced a sharp drop in demand. But then, clients, some of whom had recently been able to work remotely, began turning to Airbnb via hotels as a way to escape from cities or take a manageable vacation.
But Airbnb warned about that A recent increase In the cases of Covid-19 in Europe, its outlook for the fourth quarter may weaken.