Airbnb, Inc.

Good afternoon, and welcome to Airbnb's first quarter of 2022 earnings call. Thank you for joining us today. On the call today, we have Airbnb's co-founder and CEO, Brian Chesky, and our chief financial officer, Dave Stevenson. Earlier today, we issued a shareholder letter with our financial results and commentary for our first quarter of 2022. These items were also posted on the investor relations section of Airbnb's website. During the call, we'll make brief opening remarks and then spend the remainder of time on Q&A. Before I turn it over to Brian, I would like to remind everyone that we will be making forward-looking statements on this call that involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under forward-looking statements in our shareholder letter and in our most recent filings with the Securities and Exchange Commission. We urge you to consider these factors and remind you that we undertake no obligation to update the information contained on this call to reflect subsequent events or circumstances. You should be aware that these statements should be considered estimates only and are not a guarantee of future performance. Also during this call, we will discuss some non-GAAP financial measures. We provided reconciliations to the most directly comparable GAAP financial measures in the shareholder letter posted to our investor relations website. These non-GAAP measures are not intended to be a substitute for GAAP results. And with that, I will pass the call to Brian.

All right, thank you very much, Ellie, and good afternoon, everyone. Thanks for joining. I'm excited to share our Q1 results with you. Now, despite the pandemic, the war in Ukraine, and macroeconomic headwinds, Q1 was another incredible quarter. We exceeded 100 million nights and experiences booked for the first time ever. GBV was $17 billion, which was 73% above Q1 2019. Revenue? was $1.5 billion, exceeding Q1 2019 by 80%. Net loss was $19 million. Now this is a significant improvement in the same periods in 2018 and 2021. Adjusted EBITDA was $229 million. Now this is our first positive adjusted EBITDA Q1. And this represented adjusted EBITDA margin of a positive 15%. Now this is compared to a negative 7% a year ago, and a negative 30% in Q1 2019. And finally, we generated $1.2 billion of free cash flow in a quarter. This was also an all-time high. And what these results show is that two years into the pandemic, Airbnb is stronger than ever before. Now, why is this? Well, millions of people are now more flexible about where they live and they work. And as a result, they're spreading out to thousands of towns and cities. And they're staying for weeks, months, or even entire seasons at a time. Now, through our adaptability innovation, we've been able to quickly respond to this changing world of travel. And these incredible results were driven by a number of positive business trends. First, guests are booking more than ever before. In Q1, gross nice book grew 32%. compared to Q1 2019. And this is despite the pandemic, the war in Ukraine, and macroeconomic headwinds. People are also more confident booking travel further in advance. And we're seeing strong demand for summer bookings and beyond. Second, guests are returning to cities and they're crossing borders. So while guests continue to travel domestically and continue to go to rural destinations at Airbnb, we are also seeing guests return to cities and cross borders at or even above pre-pandemic rates. Third, guests are also staying longer, even living on Airbnb. Now, while short-term stays rebounded strongly in Q1 2022, stays of a month or longer continue to be our fastest growing category by trip length compared to 2019. In nearly half of our nights booked in Q1, were for stays of a week or longer. And one in five nights booked were for stays of a month or longer. So the world is clearly becoming more flexible about where people can work. And getting ahead of this trend, last week we announced that Airbnb employees can live and work anywhere. And we've designed a way for them to live and work around the world while collaborating in a highly collaborative way and experiencing the in-person connection that makes Airbnb special. Now fourth, our innovations are inspiring guests to discover thousands of new places. In 2021, we delivered more than 150 upgrades across every aspect of our service. And among these upgrades was the innovative iInflexible feature. Now the iInflexible feature has now been used more than 2 billion times, 2 billion. And guests who use iInflexible are more likely to book homes in less popular locations. This is really important because this allows us to point demand to where we have supply and helps distribute guests more widely in communities all around the world. But we're not stopping there. On May 11th, next Wednesday, we will be announcing the Airbnb 2022 summer release. This is a new Airbnb for a new world of travel. With a completely new way to search, guests will be able to discover millions of unique homes in Airbnb they never thought to search for. And when they book, guests will have the confidence knowing that Airbnb has their back each step of the way. And so you can watch this announcement right on our homepage next Wednesday at 9 a.m. Eastern Standard Time. 9 a.m. Eastern Standard Time next Wednesday right on our homepage. I hope you can tune in because I'm really excited about what we have to share. And then finally... our host community continues to expand. We see destinations with the strongest demand showing this most supply growth, with non-urban active listings actually growing 15% globally. And we're also showing an increase in total urban supply as demand returns to cities. And we believe that the upgrades we announced last year, including our new host onboarding flow and air cover, are supporting this growth and enabling success for new hosts. So to recap, we had our best Q1 ever. Nights and experiences booked and GBV were our highest ever. Revenue and adjusted EBITDA were records for Q1. And we generated more than $1 billion in free cash flow in the quarter. With these results, Airbnb is stronger than ever before. Now, before I go to questions, I just want to talk for a minute about our efforts in Ukraine. Because over the past few months, millions of lives have been devastated by the war. And when the crisis broke out, we knew that our platform could help refugees fleeing the crisis. And within four days of the invasion of Ukraine, we announced that airme.org would provide free housing for up to 100,000 refugees fleeing from Ukraine. have already signed up to open their homes to refugees for free or for a discount. But then, something even more remarkable happened. People started booking homes for hosts in Ukraine, hosts they never intended to stay with, just to provide release aid. And soon, more than 170,000 people joined in, and they booked approximately 600,000 nights booked in Ukraine. And because we waived our fees, $20 million went directly to host in Ukraine. And I think this speaks to the power of our community. And they are a reminder that in a world of darkness, in a world of destruction, kindness still exists. And so while I'm really proud of our business results this quarter, I'm also proud of how helpful we've been able to be to thousands of people in need. And with all that, Dave and I look forward to answering your questions.

If you would like to ask a question, please press star followed by 1 on your telephone keypad. If for any reason you would like to remove that question, please press star followed by 2. Again, to ask a question, press star 1. As a reminder, if you are using a speaker phone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered. The first question comes from Colin Sebastian with Bayard. Please proceed.