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Airbnb, the world’s biggest and most popular vacation online rental marketplace, just released its prospectus to debut on the Nasdaq Stock Exchange. Airbnb allows its customers to order for short-term rentals and experiences while traveling.

Airbnb via its detailed prospectus revealed it made $219 million in net income on revenues of $1.34 billion last quarter. That was unsurprisingly lower than $1.65 billion in revenue a year prior.

  • It’s critical to note that Airbnb presently has about 327 million users in a span of 11 years, showing a great upside in monetizing its business model exponentially for the long term.
  • Airbnb plans to trade under the symbol “ABNB” on the Nasdaq.
  • In its prospectus, the company put an emphasis on building a community around its hosts and guests, positioning that community as a differentiating factor from its competitors. The company said it would set up 9.2 million shares of non-voting stock aside in an endowment fund for hosts.

The prospectus said, “Our guests are not transactions — they are engaged, contributing members of our community.” The company said in its prospectus summary, “Once they become a part of Airbnb, guests actively participate in our community, return regularly to our platform to book again, and recommend Airbnb to others who then join themselves.

“This demand encourages new hosts to join, which in turn attracts even more guests. It is a virtuous cycle — guests attract hosts, and hosts attract guests.”

What you should know

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Nairametrics about a month ago, disclosed Airbnb was hoping to have a valuation of $30 billion in the IPO slated in the latter part of 2020. This would be substantially higher than the $18 billion Airbnb was valued at in April when it raised $2 billion in debt from investors.

Airbnb is hoping to raise about $3 billion in its upcoming initial public offering. In a report credited to Reuters news, it plans to use the present leverage of its business, after it recently rebounded in revenues from the COVID-19 induced negative toll on the hospitality industry.

  • Airbnb is an online marketplace that allows individuals to let out their apartments or spare rooms to intended guests, at prices often lower than hotels.
  • Airbnb makes a cut of 3% commission of every booking from those individuals listing their apartments on Airbnb’s platform, and between 6% and 12% from guests that book via its platform.

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