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I expected far-worse numbers but they seem to be doing okay considering the pandemic. Revenue: 2020* 2.5billions 2019 4.9billions 2018 3.7billions *until September.
Can anyone estimate what an investors in 2009 in Air BNB will get for an ROI post- IPO? I just looked and S&P 500 returned 426.134% with dividends reinvested through September 2020.
If someone got shares in 2009 they likely had a substantially higher return.
Anyone have thoughts on if that is possible or plausible?
How does one figure whether the business will keep growing without blasting people's faces with ads? If so much spend on ads is required to generate revenue growth then there will either never be profits or the revenue growth will stall (and thus the equity is worth rather little), if ads are not required then why are they spending so much on them, or maybe when will they stop spending.
All the "heroes" of the tech boom (Facebook, Google, Apple, Microsoft) did not suffer from this problem - they were profitable before going public.
It feels like this time we're in an advertising bubble. Nearly every single S-1 submitted to HN has this feature.
I am genuinely puzzled by this, if someone can offer some perspective on how can you model something like this I would be grateful - what assumptions you'd be making here.
Can anyone estimate what an investors in 2009 in Air BNB will get for an ROI post- IPO? I just looked and S&P 500 returned 426.134% with dividends reinvested through September 2020.
I believe in 2011 the strike price (accounting for both stock splits) would have been around $0.75-0.80 after they raised funds around May 2011. Assuming they are worth at least $30 billion, the shares would be around $50 for around a 6150% total return assuming $0.80 initially. If someone got shares in 2009 they likely had a substantially higher return.
Can anyone estimate what an investors in 2009 in Air BNB will get for an ROI post- IPO? I just looked and S&P 500 returned 426.134% with dividends reinvested through September 2020.
Earlier quoted context omitted.
They need the cash? If they survive through covid they are back to winner takes all.
It's kind of amazing that AirBnB requires that much money to operate but I guess I need to read the s1.
I heard a podcast discuss the possibility of AirBnB offering shares or options to superhosts (like me) ahead of the IPO–essentially as a "thank you" to the people who helped build the marketplace. Anyone have thoughts on if that is possible or plausible?
I expected far-worse numbers but they seem to be doing okay considering the pandemic. Revenue: 2020* 2.5billions 2019 4.9billions 2018 3.7billions *until September.
Airbnb in the less urban areas where I live was incredibly popular during the summer / fall. Covid-19 encouraged people in the city I live in to travel in the province instead of go to other countries.
And then of course they also posted a lot of pics of said Airbnb on their timelines, which basically became advertisements encouraging other people to do the same...
Down $600m in 2019 and another $600m in 2020? With $2b in debt? Ouch. I'm reading this right, correct? I see the cash positions below are a bit different, but that's likely from... the loans? 2018 looked so hopeful. They only lose $20m total! 2019 should have been a profitable year, IMO, but they went with the aggressive strategy.
Don't forget, there was the announcement in April [0], they issued $1 billion of that debt at 10% interest, and it's convertible, which is equivalent to rate of about 12-13% non-convertible debt.
[0] https://www.businessinsider.com/airbnb-paying-10-percent-int...
What the S1 says about that loan: Interest on the First Lien Loan is payable monthly or quarterly in arrears, at our option depending on the chosen per annum interest rate equal to (i) in the case of LIBOR borrowings, 7.5% plus LIBOR, subject to a floor of 1% (the “First Lien Eurodollar Rate”), or (ii) in the case of base rate borrowings, 6.5% plus the greatest of (a) the prime rate, (b) the federal funds effective rate plus 0.5%, and (c) LIBOR for a one-month period plus 1%, subject to a floor of 2%.