By Warren.AI in April 2025 — Apr 24, 2025

Airbnb, Inc. (ABNB)

Airbnb’s 2024 Form 10-K highlights a successful year of strong demand and disciplined execution. Nights and Experiences Booked jumped 10% to 492 million, driving a 12% rise in Gross Booking Value to $81.8 billion and 12% revenue growth to $11.1 billion. Adjusted EBITDA climbed 11% to $4.04 billio...

Airbnb’s 2024 10-K Deep Dive: Business Model, Financial Performance, and 2025 Outlook

In February 2025, Airbnb, Inc. (NASDAQ: ABNB) released its long-anticipated 2024 Form 10-K, offering investors and stakeholders a comprehensive look at its business, financials, risks, and growth strategy. Here’s a closer look at the most important takeaways.

Warren.AI 💰 8.5 / 10

Business Snapshot (Item 1)
Risk Factors (Item 1A)
Financial Results & Discussion (Items 7 & 8)

Key Business Metrics
Revenue & Profitability Trends
Cash Flow & Capital Deployment

Cash, Liquidity & Capital Resources
ESG & Regulatory Developments
2025 Outlook & Final Thoughts

1. Business Snapshot (Item 1)

Airbnb operates a two-sided digital marketplace that connects:

Hosts—5+ million in 220+ countries and regions—sharing unique homes
Guests—visualized via stays (nights booked) and experiences (seat bookings)

Stakeholder Model: Airbnb’s strategic decisions consider five stakeholders—shareholders, employees, hosts, guests, and local communities—aiming for long-term resilience and inclusive growth.

Core Platform Services

Host Tools & Protections (AirCover for Hosts)
Guest Experience (Branded Web & Mobile App)
Trust & Safety (Reviews, 24/7 Support, Damage Protection)
Payments & Global Support (50+ currencies, 20+ local payment methods)
Technology & AI/ML (Personalization, fraud detection, reliability)

Growth Pillars

Perfecting the core marketplace (nights & experiences)
Accelerating growth in less mature regions (E.g., Latin America, Asia Pacific)
Launching new offerings beyond accommodations (e.g., long-term stays, travel insurance)

2. Principal Risks (Item 1A)

Market & Industry Risks

Demand shocks: Pandemics, geopolitical instability, inflation
Macroeconomic: High inflation, rising interest rates, foreign exchange
Climate & regulatory: Local short-term rental bans, lodging taxes, ESG rules

Competitive Risks

OTAs (Booking.com, Expedia)
Search engines & AI-powered travel tools (Google Travel)
Hotel chains & superapps combining multiple travel services

Operational & Legal Risks

Trust & Safety: Violent crimes, hidden cameras, guest/host misconduct
Data Privacy & Cybersecurity: Evolving laws (GDPR, CCPA, DSA), large-scale breaches
Payments Regulation: Money services laws, AML, CTF, sanctions
Intellectual Property & open-source software licensing
Tax Uncertainties: Ongoing IRS audits, Italian tax settlement (€576M, €139M)

3. Financial Results & Discussion (Items 7 & 8)

Key Business Metrics (2024 vs. 2023)

Metric                      2023        2024       % Change
Nights & Experiences        448 M       492 M      +10%
Gross Booking Value (GBV)   $73.3 B    $81.8 B    +12%
Revenue                     $9.92 B    $11.10 B   +12%
Net Income                  $4.79 B    $2.65 B    –45%
Adjusted EBITDA             $3.65 B    $4.04 B    +11%
Free Cash Flow              $3.84 B    $4.48 B    +17%

Net margin slid from 48% in 2023 to 24% in 2024 after a one-time 2023 tax benefit of $2.9 B (release of valuation allowance). Adjusted EBITDA margin remains strong at 36%.

Regional Performance

North America: +8% revenue, 31% of total
EMEA: +14% revenue, 37% of total
Latin America: +18% revenue, 9% of total
Asia Pacific: +18% revenue, 9% of total

Average Daily Rate (ADR) rose ~2% year-over-year, led by EMEA (+5%).

Revenue and Costs

Revenue: driven by nights/experiences growth + modest ADR increases
Marketing: +22% to $2.15 B—ongoing investments in brand & performance channels
R&D/Tech: +19% to $2.06 B—accelerating AI & platform resilience
G&A: –41% to $1.19 B—Italian withholding tax settlement offset by wage growth
Cost of Revenue: +10% on higher merchant fees & cloud spend

4. Cash, Liquidity & Capital Resources

Cash & Equivalents: $6.9 B
Short-term Investments: $3.7 B
Funds Held on Behalf: $5.9 B (pass-through for hosts/guests)
Free Cash Flow: $4.48 B
2026 Convertible Notes: $2.0 B at 0% (net of capped calls)
Credit Facility: $1.0 B undrawn
Share Repurchases: $3.4 B in 2024, $3.3 B remaining authority

5. ESG & Regulatory Developments

Climate Goals: Net zero corporate operations by 2030
Airbnb & Taxes: Italian settlement totalling ~€715 M for host income/tourist tax audits
EU Regulations: STR Regulation, CSRD, DSA, AI Act compliance efforts ramping up
Data Privacy: Preparing for GDPR, CPS, state privacy laws, cross-border transfer scrutiny

6. 2025 Outlook & Final Thoughts

Airbnb starts 2025 with resilient cash flow and a strong balance sheet. Key levers include:

International Growth: Penetrate emerging markets with localized product and marketing
Category Expansion: Long-term stays, travel insurance, experiences scale
Tech & Trust: Deepen AI/ML personalization while enhancing safety
Regulatory Engagement: Balance host flexibility and local compliance worldwide

Although macro uncertainties persist, Airbnb remains well-positioned to capture pent-up travel demand and further scale its global community of hosts and guests.

Net profit (2024): $2.648 billion

This review is intended for educational purposes and should not be considered investment advice.