Airbnb, Inc.

further today, we issued a shareholder letter with our financial results and commentary for our second quarter of 2025. 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 the 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-GAP 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-GAP measures are not intended to be a substitute for our GAAP results. With that, I'll pass the call to Brian.

All right. Thanks, Angela, and good afternoon, everyone. Thanks for joining. Airbnb had a strong Q2. We exceeded expectations across key metrics, including bookings, revenue, and margins. And while the callers started with some global economic uncertainty, travel demand picked up. A nice book that Airbnb accelerated from April to July. We also made meaningful progress across our three strategic priorities. First, we continued to perfect our core service. In Q2, we made improvements to checkout, messaging, merchandising, and more flexible payment options, all of which helped us increase revenue. We also expand our new AI customer service agent in the US, reducing the percentage of hosting guests who need to contact a human agent by 15%. Second, we accelerated growth in global markets. Nice books on an origin basis in our expansion markets have now grown at twice the rate of our core markets for six consecutive quarters. And what this shows is that we're achieving product market fit, increasing brand awareness, and driving traffic in key countries outside the United States. So take Japan, for example. Late last year, we launched a brand campaign to raise awareness among Japanese travelers. You might want to take a trip within Japan. And the early results are really encouraging. In Q2, Japanese travelers booked more nights on Airbnb than they did in Q1, driven by more domestic travel and a 15% -over-year increase in first-time bookers. We also announced several major partnerships to help accelerate growth in key markets, including a three-year partnership with the Tour de France, a global live partnership, music partnership with Lollapalooza, and our continued partnership to IOC for the upcoming Winter Olympics in Milan. And we just announced a three-year partnership with FIFA and the World Cup, which is the largest event in the world. Large events have been a part of Airbnb's story from the very beginning. They help us build brand awareness and grow supply in key markets. And while many of these partnerships are high profile, the events themselves are often very local. And that's what makes them so powerful. They highlight our ability to disperse travel beyond popular city centers and help strengthen relationships with local governments and communities. Finally, our third strategic priority is expand our business beyond stays. And in Q2, we did that in a big way. As part of our 2025 summer release in May, we launched Airbnb services and completely reimagined Airbnb experiences. We also introduced an all-new app, making it easier to book homes, services, and experiences all in one place. Now, this was our biggest launch to date and it generated more than 13,000 press stories and nearly 660 million social media impressions. After the launch, I traveled around the world to amplify the news and key markets. And over the next three weeks, I visited six countries and met with over 600 members of the press, policymakers, Airbnb partners, and Airbnb hosts. And so far, the response to our summer release has been great. Guest dates, these are discovered new list offerings on our homepage and finds are looking for. And when they book a service experience, the feedback has been incredibly positive. The average guest rating for service and experience since launch is 4.93 stars out of five stars. Now, for context, this outperforms the already impressive 4.8 average rating for home during the same period. And we're also seeing strong interest from potential hosts. Since launch, over 60,000 people have submitted applications to host a service or experience. We are really excited by the momentum. It's still early, but we believe that service experiences can become sizable businesses for Airbnb. Now, with that, I'll turn it over to Ellie for a financial update.

Thanks, Brian. And good afternoon, everyone. I'll start with a review of our Q2 financial results and then I'll walk through our outlook for Q3. As Brian mentioned, Q2 marked another strong quarter for us. We had 134 million nights and seats booked of 7% year over year. We also saw an acceleration in year over year nights and seats booked with growth rates for May and June, both outpacing Q1. Looking at the growth rates by region, Latin America grew in the high teens, Asia Pacific grew in the mid-teens, EMEA in the middle single digits, and North America in the low single digits. It is worth highlighting that nights and seats booked is a new metric that now includes the number of nights booked for stays as well as the total number of seats booked for both services and experiences. Now, turning to our Q2 financials, revenue for the quarter was 3.1 billion, up 13% year over year. In terms of profitability, we generated 1 billion of adjusted EBITDA, representing a 34% margin, up from .5% last year. And finally, net income of 642 million and EPS of $1.03 grew 16% and 20%, respectively. Next, I'll turn to our balance sheet and cash flow. We continue to generate significant cash in Q2, delivering 1 billion of free cash flow. Over the past 12 months, we've generated 4.3 billion, representing a free cash flow margin of 37%. At the end of Q2, we had 11.4 billion of corporate cash and investments, as well as 11.1 billion of funds held on behalf of guests. Our strong balance sheet allowed us to repurchase 1 billion of our common stock during the quarter. And we ended Q2 with 1.5 billion remaining on our repurchase authorization. And today, we're announcing a new share repurchase program with authorization to purchase up to an additional 6 billion of our Class A common stock. Now, since introducing our share repurchase program in 2022, we've reduced our fully deleted share count by 8%. Now, let me shift to our Q3 and full year 2025 outlook. As we look to Q3, we're encouraged by current demand trends, specifically the acceleration of nights booked from April through July. We've seen this momentum globally, with especially strong growth in the U.S. That said, we do expect -over-year comparisons to get tougher toward the end of the quarter, and that this dynamic will continue into Q4, putting pressure on growth rates later in the year. Specifically for Q3, we expect to generate 4.02 billion to 4.1 billion, representing -over-year growth of 8 to 10%. This includes minimal impact for foreign exchange after factoring in our hedges. We expect nights and seats booked to grow at a similar rate to Q2 2025, and for ADR to increase modestly -over-year, primarily driven by FX. On profitability, we expect adjusted EBITDA in Q3 to exceed 2 billion, and we anticipate that adjusted EBITDA margin will be lower than in Q3 2024, primarily due to investments in new growth and policy initiatives. And we expect a similar -over-year decline of adjusted EBITDA margin in Q4 2025, due to growth investments and a tougher -over-year top-line comparison. For the full year, we continue to expect an adjusted EBITDA margin of at least 34.5%. This includes approximately $200 million of investment towards new businesses in 2025. While we don't expect meaningful revenue from our new businesses in the near term, we expect or excuse me, we believe the opportunity is significant in our building with a multi-year view. To wrap up, our Q2 results reflect strong execution across our strategic priorities, perfecting the core, accelerating growth in global markets, and expanding beyond the core. We are acting with urgency and focus to drive growth of our core business and to scale services and experiences. And with our strong financial position, we are well equipped to invest in the future in order to create long-term value for our investors. With that, I will open it up to Q&A.