If they don’t IPO thid year, won’t a lot of employees equity expire?
How much run way do they have?
According to CNBC, they had 3 billion on hand last Oct, down from 3.5 billion last Mar. And their losses were doubling at this point. So optimistically, they might have 2.5 billion on hand now. And with the way that the bookings are down, their losses might be substantial. They do have an additional billion dollar line of credit, but even with this, they might have less than a year of runway if current situation continues. No surprise they are seeking new funding.
Curious what are the main expenses and whether they can temporarily cut back and still be ready to operate.
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It’s worth nothing until a liquidity event. Can’t they sell it on the secondary markets to some dumb wannabe investors? I don’t see how Airbnb can stay afloat at an IPO. They missed the boat on cashing out short term.
Well these times aren’t making it easy for any company to stay afloat, public or private. As far as Airbnb, it is a good company and a household name that still retains a big market share in the travel sector. Hopefully this virus outbreak settles down, and if/when it does, people will start traveling and thus using Airbnb again. The bigger issues with the company stem from potential legal conflicts with local cities/towns and a lack of a profitable business model. These aren’t easy to solve, but if they do, I can see them doing well in the long-term.
Uber is/was in a similar boat - household name, local jurisdiction issues. I don’t think Airbnb disappears or is a disappearing fad, but I also struggle to see how anything in the sharing economy is prospering, now or later. The virus situation is going to make people paranoid well after it dies down so I don’t see that as something that resolves for travel soon. Hopefully they have a bunch of cash stockpiled.