Airbnb, Inc.

Good afternoon and thank you for joining Airbnb's earnings conference call for the third quarter of 2025. As a reminder, this conference call is being recorded and will be available for replay from the investor relations section of Airbnb's website following this call. I will now hand the call over to Angela Yang, Director of Investor Relations. Please go ahead.

Good afternoon and welcome to Airbnb's third quarter of 2025 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 Murch. Earlier today, we issued a shareholder letter with our financial results and commentary for our third 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 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 the call, we will discuss some non-GAAP financial measures. We provided recommendations to the most directly comparable GAAP financial measures in the shareholder letter posted to our investor relations website. These non-GAAP financial 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. I am excited to share that Airbnb had another strong quarter. Revenue increased 10% year-over-year, landing at the high end of our guidance. Adjusted EBITDA was over $2 billion, and this is our highest in any quarter ever. Gross booking value increased 14% year-over-year, while nights and seats booked rose by 9%. Both metrics accelerated in Q2, and they both exceeded our expectations, and they were driven by the strength in the U.S. market and ADR. We are driving this growth by focusing on four key areas, making our service better, bringing Airbnb to more parts of the world, expanding what we offer, and integrating AI across our app. So what I want to do is I want to share just a few highlights on each of these four growth levers. First, we're making Airbnb better for our hosts and guests. So we know that the better our product is, the more people use it. And since this past May, We didn't stop. In fact, we accelerated development by making 65 major improvements that we think will help further drive growth. And here are just a few of them. You know, we know that guests want more flexibility in ways that they can pay. So we introduced reserve now, pay later in the United States. And not unexpectedly, this helped drive nice since he's booked in Q3. So we're going to continue to roll this out more broadly next year. We also announced improved maps. One of the things we noticed was a lot of people were coming to Airbnb. They didn't have enough context on the map on Airbnb when they were leaving our app, going to Google, Apple Maps, somewhere else. And sometimes they wouldn't come back to our app. So we built a lot more context about our map on Airbnb. We added nearby landmarks, public transit, restaurants. We even are offering different map views, like satellite views, street view, transit view. And this is, we think, going to be a huge user experience improvement. And we'll keep people on our app and increase conversion. Finally, we updated our cancellation policy, so it's even easier for hosts to earn more and guests to make changes. Hosts can now choose a new policy that allows guests to cancel for free up to 14 days before check-in. And all guests can cancel for free within 24 hours if they book more than seven days before check-in. So these changes are reducing a huge amount of customer service cases and increasing annualized booking. And again, these are just a few of the 65 major improvements that we just made that makes our service better. Number two, we're bringing Airbnb to more parts of the world. International expansion is a multi-year strategy, but we're already off to a great start. Over the past 12 months, average next books in our expansion markets have grown at double the rate of our core markets. And we're also attracting new users to the platform and key markets. For example, first-time bookers were up over 20% in Japan and nearly 50% in India on a year-over-year basis. So this is really encouraging. Number three, we're driving growth by expanding what we offer. In May, we took the first step in expanding Airbnb beyond stage and launch of Airbnb services and experiences. Now, since then, feedback from guests has been amazing. Service experiences are receiving an average rating of 4.3 out of five stars. And now in our core business, it's 4.8 out of five stars. So this is really encouraging as a sign of growth to come. If people love your product, they'll use it more. Service experiences are also bringing more people to the platform. So in Q3, almost half of the people who booked an experience did not have an Airbnb stay. So we're giving people another reason to use Airbnb. And we're also scaling supply of high quality service experiences. In fact, we received over 110,000 applications from potential hosts. So not only do we think the demands can be there, the supply is there as well. And that is almost double last quarter, 110,000 applications. And it means people see the value of reaching new customers through Airbnb. But we're not just adding more service experiences. We know one of the top reasons guests look experiences because they want to meet other people. So we're making the experiences more social. Now, before a guest books an experience, we're going to show them who else is going and where they're from. So guests can also request to directly message other guests they met during an experience to keep in touch or plan their experience right in the app. In the connection section of the Airbnb profile tab, guests can see the people they've met on experiences so it's easy to reconnect. This is really just about giving guests what they want. and doing what Airbnb does best, which is bringing people together in the real world. Now, outside of service experiences, we're also launching hotels in Airbnb. While a small number of hotels enlisted in Airbnb in the past, we haven't had a true hotels business until now. We started with a hotel pilot in LA, New York City, and Madrid, and we're partnering directly with boutique and independent hotels. As part of this pilot, We've improved how hotels show up on Airbnb with new search filters, updated hotel page displays, and the ability to choose your room type. So in other words, we built a custom-built product just for hotels. We've also been actively recruiting hotels in key markets where there aren't a lot of Airbnbs. And our goal is to fill the gaps where hotels make more sense for guests, like a one-night stay trip in the middle of the city. Finally, we're integrating Airbnb exclusively sorry, finally, we're integrating AI extensively across the app. Over the past year, we've been laying the foundation for a more intelligent, more personalized Airbnb, from rebuilding our tech stack to launching a series of new AI features. We now have more than a dozen AI work streams underway, and they're all focused on really creating a more personal experience for guests and hosts and making it easier to discover what we offer. Now, this is part of a major transformation for Airbnb, and I want to share just two highlights from Q3 with regard to AI. This quarter, we rolled out smarter and faster AI customer support. Our AI customer support assistant has smarter responses. It includes answers to your reservation or listing, and also provides quicker, more precise responses. It also lets you take common actions, like canceling or changing reservation dates directly from the chat so what we did is we designed this custom user interface that's not just text-based but it's got used rich user interface module so it's a really custom built ai interface built right into the messaging platform now we initially launched this united states where it's already reduced people's need to contact a human agent by 15 so now we're going to expand it to more countries in more language and we expect this to be in over 50 languages next year Now, we're also building out AI-powered search. And this is a really, really big part of our strategy. You're going to see this. We're testing it now. You'll see this rolling out through the app next year. And this will let people have a conversation with the app, just like a chatbot, about what they're looking for so we can help them design the perfect trip. And remember that we have access to all the same models that every other chatbot and AI application has. So we think this is going to be a really delightful product to use. Now, this is just the beginning of a much bigger AI strategy because we're integrating AI across our app to make everything smarter, more personal, and easier to use. But I think what makes our approach different is that we're not just using AI to pull people deeper into the screen. We're using it to get them off their phones and help them connect in the real world. Because I believe in the age of AI, more and more, what's going to happen is what's on a screen will be artificial. You won't know if it's real or not. In the age of AI, people are going to increasingly want what's real and what's real is in real life. They're going to crave real experience over real people in the real world. And I think that's especially true for younger generations who grew up on social media and are now surrounded by AI-generated content. So we think Airbnb is the best way to experience the magic of the real world. So while other companies are using AI to keep you online, we're really trying to do the opposite, get you off your phone and into the real world. And so in that sense, a bet on Airbnb Airbnb is a bet on AI because it's a bet that the more AI proliferates the content we consume on devices, the more people are going to yearn for real connection with real people in the real world. So with that, I'll turn it over to Ellie.