Airbnb posts a $3.9 billion loss in its first report as public firm.

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Airbnb, which has confronted sky-high expectations since its blockbuster preliminary public providing in December, posted declining income and a whopping $3.9 billion loss on Thursday in its first earnings report as a publicly traded firm.

The corporate introduced in $859 million in income within the final three months of the 12 months, down 22 % from a 12 months earlier. Its loss was pushed by $2.8 billion in prices related to stock-based compensation associated to its I.P.O., in addition to an $827 million accounting adjustment for an emergency mortgage it took out final 12 months to climate the pandemic.

Airbnb’s loss approaches the $5.2 billion misplaced by Uber in its first full quarter as a public firm and renewed questions on whether or not unprofitable tech start-ups can flip a revenue. Though most money-losing tech corporations say that they’re spending cash to gas quick development, Airbnb’s shrinking income makes that argument a more durable promote.

Airbnb offered its declining income as a present of resilience in a 12 months when journey got here to a standstill due to the pandemic. Final spring, Airbnb misplaced $1 billion in bookings, laid off employees and raised emergency funding in response to lockdowns and different restrictions. By the summer season, bookings had bounced again, although not sufficient to make up for the outlet in income.

In December, the corporate went public and raised $3.5 billion, valuing it at greater than $100 billion. Since then, its valuation has risen as excessive as $120 billion on investor expectations {that a} quick vaccine rollout would spur a brand new growth in journey.

Even when journey bounces again this 12 months, Airbnb faces challenges. Its hosts, who present its stock within the type of property listings, have turn out to be more and more pissed off with the corporate and are in search of to checklist their leases independently. Its issues with “social gathering homes” worsened within the pandemic and the corporate has rushed out new guidelines. And regulators all over the world proceed to scrutinize the “Airbnb impact” of turning housing inventory in residential areas into motels.

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