Why’s Airbnb the first to be profitable yet probably the last to go public?

Uber ublinder
Mar 10 37 Comments

What’s up with airbnb? Companies like uber, lyft are going public with huge losses.

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TOP 37 Comments
  • Amazon JWdr84
    Most importantly, they don't need the cash. But it lets them do things their way without public finance metrics affecting employee net worth and thus morale if things don't go as well as they hope.
    Mar 100
  • Lyft swetool
    The business doesn’t need the cash but the stakeholders of the business certainly do. So far no one’s offered an explanation
    Mar 101
    • Amazon JWdr84
      If Airbnb hasn't been pressured by investors to IPO sooner rather than later, then I suspect it has something to do with their obsession with building a great company culture. They probably have their investors convinced that it's in the best long-term financial interest of the company to continue to build their culture so that the employees don't leave at the first chance they get some liquidity.
      Mar 10
  • Airbnb AirEvryWhr
    Most likely we will go ipo by end of 2019. Would definitely go ipo before mid 2020.
    Reason why not yet - only big shots know but here is my understanding :
    1. We don’t need cash as we are already profitable.
    2. We want to generate more revenue streams before we go ipo.
    3. We want to try out different business and see what else sticks. It’s harder to try new risky things after you go ipo as you cannot freely spend without making investors nervous.
    4. Investors are patient and not being pushy as they have confidence in founders.
    5. Employees were not that patient as investors . So last year company started giving huge bonuses to us. Like at L6, I am getting 25%. This is to help employees have more money in hands . Also company gave us option to receive up to 25% of refreshers in cash so that we have more in hand money without going ipo. So now employees are patient too.
    Mar 111
    • Uber iffhbo
      Wow sounds great thanks for the insights. Good luck to you all!
      Mar 11
  • Facebook public2
    If you are profitable you are less desperate for a funding round (aka ipo)
    Mar 100
  • This comment was deleted by original commenter.

    • Uber ublinder
      OP
      Wait what? You mean rsu could expire?
      Mar 10
    • Cruise Automation Gus888
      ISO grants
      Mar 10
  • Indeed / EngWrinklyMD
    Why sell shares when you're making money
    Mar 103
    • Google / Eng
      learner

      GoogleEng

      PRE
      Microsoft
      BIO
      14 yoe engineer in tech
      learnermore
      Company is making money. But shareholders and employees cant sell their shares until ipo. How long can you force them to hold onto paper shares worth millions?
      Mar 10
    • New / MgmtVSwf01
      Lol, they don't give a fuck about the employees, it's all about optimizing for greatest value for the main owners, if they can afford to wait they will wait.
      Mar 10
    • Google / Eng
      learner

      GoogleEng

      PRE
      Microsoft
      BIO
      14 yoe engineer in tech
      learnermore
      Yes, so if all major shareholders are patient, and they think company value will increase a lot without needing extra IPO money, they will delay that long.
      But what if long term prospects are not fully known? And some big investors start getting impatient?
      I'm just answering the qn of why a company might do ipo even if they are profitable.
      Yet another reason is, if they think they can use the IPO money to expand exponentially, then they would ipo
      Mar 11
  • Google LyLs67
    To IPO you don't need profit, you need growth. Airbnb is not growing.. since Priceline and Expedia are competing very efficiently and local governments at kicking their ass
    Mar 1112
    • Google LyLs67
      Don't think that number is correct. Airbnb is stuck with competition and regulation
      Mar 12
    • Airbnb AirEvryWhr
      We still have Organic growth . Do you have a source for your statement or is it just plain disbelief?
      Mar 13
    • Google LyLs67
      Thanks for your condescension. I have good intincts. If it was so Rosy whye is it not going IPO this year. Why would there be exec churn. And why works they but a failing hotel tonight.
      Mar 13
    • Airbnb / Finance
      unemployd

      AirbnbFinance

      PRE
      Accenture
      BIO
      Sup
      unemploydmore
      Uhh not really sure i get your last post, but the growth is there, we just don't need the money and want to do things our way
      Mar 14
    • Airbnb Rtkpt
      Rofl Expedia is in the dumpster. They actually aren't growing and are losing money. We are profitable and growing.
      Mar 14
    • Google LyLs67
      Booking.com has equal number of rooms as Airbnb.. so yeah not really dumpater
      Mar 14
    • Bloomberg iVX372
      Rooms. What about annual bookings, revenue and profits?
      Mar 14
    • Google LyLs67
      I'm sure they are comparable. Airbnb hasv no story to sell to wall Street
      Mar 15
    • Bloomberg iVX372
      Multiple people in this thread besides you have stated that Airbnb is profitable and growing. Sounds Airbnb rejected you in an interview
      Mar 15
    • Google LyLs67
      Sounds like you are a loser
      Mar 15
  • Uber zuckerr
    RSUs expire in 5-7 year.
    Mar 100
  • New / MgmtVSwf01
    They missed a big bull run and need to wait till the market is ready and greedy enough to go again.
    Mar 100
  • Northrop Grumman / EngHowCouldYu
    It’s called hyperinflation and not living up to the hype
    Mar 100
  • Uber fellow99
    40% is unlikely. Maybe in 2014
    Mar 133
    • Airbnb AirEvryWhr
      Till 2017 numbers are public . So feel free to google or visit our office and see it on wall.
      Mar 13
    • Uber fellow99
      That's impressive. Wonder if it is similar in 2018. Uber has grown similarly. Hope. it continues
      Mar 13
    • Airbnb AirEvryWhr
      Skift has done research on possible 2018 Airbnb revenue and they came out with a 4.4 billion number (public info on skift website ). That might or might not be true as it’s an independent research by a media company but that seems to be only comparable number .
      Year before our revenue was 2.7. number of listings were 4 million, now its 6 million(Airbnb made that info public last week) .
      You can calculate the growth .
      Hope it grows for few more years at least . That’s why I like that company is trying different revenue streams so that once growth becomes stagnant , we have other products to show. Similar to uber eats, delivery, transportation etc.
      Mar 18
  • Google LyLs67
    Wonder why the numbers are not public now 😂
    Mar 131
  • Uber fellow99
    Its unlikely to grow much.
    Mar 110
  • Uber DWrm74
    Co-founders are rich and they don't care about employees who cares about liquidity
    Mar 110
  • New RItI54
    they don’t need the cash and putting Expedia’s also ran brand HomeAway to shame
    Mar 100

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