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Airbnb Incurred Losses Of Around $700 Million

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As Airbnb prepares for its stock market debut in December, it revealed for the first time how the coronavirus pandemic has affected its business.

The company has filed for an IPO and revealed that it suffered losses of around $ 700 million on revenue of $ 2.5 billion from January to September of this year.

Airbnb: What is an IPO?

According to Investopedia, an initial public offering or an IPO is the “process of offering shares of a private company to the public as part of a new issue of shares. Public issuance of shares allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to realize the full gains from their investment, as it usually includes share premiums for current private investors. At the same time, it also allows public investors to participate in the offer ”.

According to Airbnb IPO, the company was facing a revenue growth slump long before the pandemic decimated an already dizzying global economy. According to Financial Times, the company also hinted that its peak may have passed given that in 2019 it experienced its next third year of slower growth.

“We believe our SEO results have been affected by the launch of Google Travel and Google Vacation Rental Ads,” the IPO file read about why Airbnb Experiences, which links local guides to tourists, cannot develop as much as the company would like. it to, “which reduce our platform’s prominence in organic search results for travel-related terms and placement on Google.”

According to Livemint, the company had “a net loss of $ 697 million on revenue of $ 2.5 billion for that nine-month period, compared with a net loss of $ 323 million on revenue of 3.7 billion dollars for the same period last year ”.

On a related note, Airbnb welcomed its first Bollywood hosts – Gauri Khan and Shah Rukh Khan when they opened their New Delhi home on Airbnb. In homage to Shah Rukh’s signature pose of over 30 years as a Bollywood superstar, the ‘Home with Open Arms’ campaign will give the people of India a chance to stay in the distinguished home of the Khan family.

(Header credits: Gauri Khan in his Delhi home – Airbnb “Home with Open Arms”)

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