Summary List Placement
Airbnb finally filed for its much-anticipated IPO on Monday, the most concrete move it has taken towards going public in a tumultuous year for the home-sharing and hospitality giant.
Airbnb’s September 2019 announcement of its intention to go public was made before the first known case of coronavirus and the company was valued at $31 billion, and hadn’t had to raise venture funds since 2017.
Since then, the pandemic has put unprecedented pressure on the global travel and hospitality industry. Airbnb felt the pain acutely with bookings dropping down 67% year over year in the second quarter. Through the first half of the year, the company incurred net losses of $916 million on revenue of $1.18 billion, and had to lay off 25% of its staff, or about 1,900 employees.
The company also took out two $1 billion loans to keep cash flow during the slowest periods, one of which is more than 10%.
While the company’s fortunes have been looking up in the third quarter, with the company making $219 million on $1.34 billion in revenue, it is filing to go public as the world faces a second wave which has already caused Europe to go back into lockdown …read more
Source:: Businessinsider – Finance