Q3 2025 Airbnb Inc Earnings Call Transcript
Key Points
- Airbnb Inc (ABNB) reported a 10% year-over-year increase in revenue, reaching the high end of their guidance.
- The company achieved its highest ever adjusted EBITDA of over $2 billion in the third quarter.
- Gross booking value grew by 14% year over year, driven by strong growth in both bookings and price.
- Airbnb Inc (ABNB) is expanding its international presence, with significant growth in markets like Japan and India.
- The introduction of 'Reserve Now Pay Later' in the US has been popular, with 70% of eligible users opting for it, contributing to increased bookings.
- The company's net income was impacted by a one-time $213 million valuation allowance related to corporate alternative minimum tax credits.
- Despite the growth, there are increased cancellations associated with the 'Reserve Now Pay Later' offering.
- Airbnb Inc (ABNB) faces challenges in ensuring quality control and consistency of experience, which are key reasons some travelers prefer hotels.
- The integration of AI and new business initiatives like services and experiences are expected to take three to five years to become materially significant.
- There is a perception that Airbnb Inc (ABNB)'s core homes offering in some of its largest regions has matured quicker than anticipated, potentially limiting growth.
Good afternoon, and thank you for joining Airbnb's earnings conference call for the third quarter of 2025. As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of Airbnb's website following this call.
I will now hand the call over to Angela Yang, Director of Investor Relations. Please go ahead.
Good afternoon, and welcome to Airbnb's third quarter of 2025 earnings call. Thank you for joining us today. On the call today, we have Airbnb's Co-Founder and CEO, Brian Chesky and our Chief Financial Officer, Eli Mertz.
Earlier today, we issued a shareholder letter with our financial results and commentary for our third quarter of 2025. These items were also posted on the Investor Relations section of Airbnb's website. During the call, we'll make brief opening remarks and then spend the remainder of time on Q&A. Before I turn it over to Brian, I would like to remind everyone that we will be making forward-looking
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