Airbnb, Inc.

I will now hand the call over to Angela Yang, Director of Investor Relations. Please go ahead.

Good afternoon, and welcome to Airbnb's second quarter of 2024 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, Ellie Mertz. Earlier today, we issued a shareholder letter with our financial results and commentary for our second quarter of 2024. 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 reconciliation to the most directly comparable gap financial measures in the shareholder letter posted to our investor relations website. These non-gap measures are not intended to be a substitute for our gap results. With that, I will pass the call to Brian.

All right. Good afternoon, everyone, and thanks for joining. You know, Q2 marked another strong quarter for Airbnb. We had 125 million nights and experiences booked. Revenue increased 11% year-over-year to $2.75 billion. Net income was $555 million, representing a net income margin of 20%. And we generated $1 billion in free cash flow. Our total trailing 12-month free cash flow was $4.3 billion, our highest ever. And our strong cash flow allowed us to repurchase $749 million of our shares in the quarter. As of the end of Q2, we had $5.25 billion remaining on our share repurchase authorization program. Now, during Q2, we continue to make progress on our three strategic priorities, which again, are making hosting mainstream, perfecting our core service, and expanding beyond the core. So I'll share a few highlights on each. First, we are making hosting mainstream. Last year, we shared our commitment to make hosting just as popular as traveling in Airbnb. We've been focused on raising awareness around the benefits of hosting and providing better tools for hosts. In Q2, we surpassed 8 million active listings, driven by continued growth across all regions and market types. We're not just growing supply, we're also committed to ensuring that it's high quality supply. Since launching our updated host quality system last April, we've removed over 200,000 listings that failed to meet our guest expectations. And we'll continue to raise the overall quality of listings on Airbnb so we can consistently deliver high-quality stays. Second, we're perfecting our core service. We remain focused on making Airbnb more reliable, affordable, and an overall better service for hosting guests. We've rolled out hundreds of new features and upgrades over the past few years to do this. This includes launching major reliability initiatives like guest favorites, which make it easy for guests to find the best listings in Airbnb. Now, since launch last November, we've seen over 150 million nights booked at guest favorite listings. We've also made dozens of smaller changes that have led to improved usability and booking conversion. These include things like simplified signup and login, improved maps, clear cancellation policies, and so much more. Now, we've made tremendous progress and we'll never stop improving Airbnb. We're going to continue this commitment. And finally, perhaps most excitingly, we're expanding beyond our core. We continue to drive growth by investing in under-penetrated markets. In Q2, growth of Gross Night's Book on an origin basis in our expansion markets significantly outperformed our core markets on average. Our core markets, again, are US, UK, France, Australia, and Canada. This is largely due to the success of our global expansion playbook, which includes a more localized product and marketing approach. We're also expanding Airbnb's brand positioning beyond travel accommodations to launch and roll out of Airbnb icons, which is a new category of extraordinary experiences that we launched in May. Now, since launch, we've seen nearly 40 million views of icons on our site. Helping people understand that Airbnb offers more than accommodations will be critical as we expand our offerings in the coming years. Now, looking back to Q2, we saw a number of positive business highlights. First, guests are increasingly booking on the Airbnb app. We've continued to optimize our mobile website to promote app downloads, and we believe our approach is working. Nights booked on our app during Q2 increased 19% year-over-year. Now, these bookings now comprise 55% of total nights booked. and this is up from 50% in the prior year period. Now, in addition to our success in mobile downloads and bookings, we're continuing to see growth of first-time bookers in our platform, with the highest level of growth seen in the youngest age demographic. Second, Airbnb is uniquely positioned for special events. We're continuing to see more guests choose Airbnb for major holidays and events. The week of July 4th, for example, represented our single highest week of revenue ever in North America, and we saw similar trends in Europe. Now, anticipation of the Olympics, which was in Paris, nights booked in Paris through Q2 were more than double what they were this time last year. Additionally, cities hosting matches during the recent Euro Cup in Germany saw on average a more than 20% year-over-year increase in nights booked. And supply has increased to meet the higher demand. So we have 37% increase in active listings in Paris in Q2 compared to a year ago. In these events, What they really do is they highlight Airbnb's unique ability to disperse travel and spread economic benefits by allowing people to stay in local neighborhoods where there are no travelers, no hotels. Finally, supply growth is improving on Airbnb. We made huge strides in supply growth, remain just as focused in supply quality. As we improve quality, we believe more people will try Airbnb, unlocking even more growth. We have two major initiatives underway to help us do this. First, we're removing low quality supply. As I shared earlier, we've removed over 200,000 listings since April of last year. Second, we're making it easier for guests to find the best stays on Airbnb. We launched guest favorites as well as top listing highlights, which show the top 1%, 5%, and 10% of eligible homes on Airbnb. These new features make it easy for guests to find the highest quality homes on Airbnb. In Q2, we also saw active listings managed by super hosts, some of our highest quality hosts. increased 26% year over year. We're proud of our Q2 results. Now, turning to Q3, we're looking forward to another record summer travel season. We've been encouraged by the excitement around the Olympics and the Euro Cup, and we're also encouraged by the relative strength of Latin America and Asia-Pacific, which continue to be our fastest-growing regions. However, we are seeing shorter booking lead times globally and some signs of slowing demand from U.S. gas. And our Q3 outlook incorporates these recent trends. We're watching these trends closely, along with the impact any macroeconomic pressures might be causing. And we'll continue to execute against our growth strategy by improving our service, expanding in less penetrative markets, and introducing new offerings. We believe this growth strategy will, over the long term, offset any transitory macro trends. So with that, I only now look forward to answering your questions.