In its IPO prospectus, Airbnb said that third-quarter revenue dropped 18% to $1.3 billion. Even with the decline, the period was Airbnb’s second-biggest ever, behind only the same quarter from 2019, CNBC reported. And because the company slashed its sales and marketing costs by 74%, Airbnb turned a profit of $219 million.
- How they pulled it off: People weren’t traveling so much to big cities like New York, Chicago and Los Angeles, but starting in the summer, they were looking for cabins by the lake or in the mountains to spend a holiday weekend or as an escape for a month or two of remote work.
- Context is key: Airbnb had a disastrous second quarter where revenue plummeted 72%, and the company laid off 25% of its workforce, slashed its valuation and raised about $2 billion in high-interest debt. [CNBC]