Business & Tech

Airbnb is said to post $1 billion in revenue last quarter

Airbnb chief executive Brian Chesky has said he expects his company to file for an initial public offering next year.
Carl Court/Getty Images
Airbnb chief executive Brian Chesky has said he expects his company to file for an initial public offering next year.

Airbnb Inc. remains on a profitability streak and pulled in about $1 billion in net revenue for the quarter that ended in September, according to people familiar with its financial results.

The home-rental company has maintained a steady profit before interest, taxes, and amortization for at least 17 months, said the people, who asked not to be identified discussing the private company’s earnings. Airbnb first became profitable during the second half of 2016, the people said.

Last week, Morgan Stanley released a report that said Airbnb’s growth is slowing. The analysts based their estimates on an online survey of 4,000 consumers from the United States, United Kingdom, France, and Germany.

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The survey didn’t include Latin America and Asia. Airbnb’s growth in those two regions has put the company on track to end this year with 60 percent more bookings than last year, said two people. Asia saw an 80 percent increase in bookings since late last year, and Latin America grew 150 percent, said one of the people.

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Profitability and revenue growth are important metrics for the nine-year-old travel upstart, which is under pressure to justify its private valuation of $31 billion. Airbnb chief executive Brian Chesky has said he expects his company to file for an initial public offering next year.

In addition to expanding globally, the San Francisco-based company is experimenting with new product categories like luxury accommodations, Airbnb-branded apartment buildings, and guided tours. Last year, Airbnb introduced a service that sells hat-making classes, truffle-hunting expeditions, and other tourism experiences. In February, Airbnb purchased Luxury Retreats, a vacation-home management company that specializes in providing travelers with a concierge, massages, and child care. The wide range of businesses is designed to make Airbnb a full-service travel company that can compete with Priceline Group Inc. and Expedia Inc.