Airbnb (ABNB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 11% year-over-year to $2.75 billion, with 125 million Nights and Experiences Booked and net income of $555 million, a 20% margin.

• Free cash flow reached $1 billion for the quarter and $4.3 billion for the trailing 12 months, the highest ever, with a 41% free cash flow margin.

• Adjusted EBITDA for Q2 set a new record at $894 million, maintaining a 33% margin.

• Share repurchases totaled $749 million in Q2, with $5.3 billion remaining authorized.

• Strategic priorities include mainstreaming hosting, perfecting core service, and expanding beyond core offerings.

Financial highlights

• Q2 2024 revenue: $2.75 billion (+11% YoY); H1 2024 revenue: $4.9 billion (+14% YoY).

• Q2 2024 net income: $555 million (20% of revenue); H1 2024 net income: $819 million (17% of revenue).

• Adjusted EBITDA for Q2 2024: $894 million (33% margin); H1 2024: $1.3 billion (27% margin).

• Free cash flow for Q2 was $1 billion; trailing 12-month free cash flow reached $4.3 billion.

• Interest income increased 18% YoY in Q2 2024, driven by higher cash balances and interest rates.

Outlook and guidance

• Q3 outlook reflects shorter booking lead times globally and some slowing demand from U.S. guests.

• Continued investment in growth, especially in international markets, is expected to compress EBITDA margin to a minimum of 35% for the full year, down from nearly 37% in 2023.

• Management expects continued strong travel demand, led by international expansion, especially in Asia Pacific and Latin America.

• Anticipates paying additional federal taxes in 2024 due to the Corporate Alternative Minimum Tax, with future credits expected to offset this impact.

• No Q4 guidance provided, but booking patterns suggest possible late bookings for holidays.