Short-term rental giant Airbnb saw record net income and revenue during the third quarter of 2021 as pent-up travel demand and the ability to work remotely came to a head.
During an earnings call on Thursday, the company announced $834 million in net income, an increase of 280 percent year over year, and $2.2 billion in revenue, which was up 67 percent year over year. Revenue also surpassed levels from the same period in 2019 by 36 percent.
“The travel rebound that began earlier this year accelerated in Q3, resulting in Airbnb’s strongest quarter ever,” a letter to shareholders states. “This summer, we reached a major milestone of 1 billion cumulative guest arrivals as more people got vaccinated and travel restrictions were relaxed. Host earnings reached a record of $12.8 billion in the quarter, and active listings continued to grow.”
A strong rebound in the number of nights and experiences guests booked on the platform, paired with surging average daily rates, drove the company’s gross booking value to $11.9 billion, which was up 48 percent year over year. Nights and experiences booked increased 29 percent year over year to 79.7 million.
Adjusted EBITDA also hit a new high for the company, increasing by 120 percent year over year to $1.1 billion, as a result of high revenue in combination with the company’s “continued cost management.”
The company expressed optimism about the future of short-term rentals as workers and companies continue to embrace hybrid work policies.
“The pandemic has suddenly untethered tens of millions of people from the need to go into an office,” Airbnb’s CEO Brian Chesky said during the call.
“The world is undergoing a revolution in how we live and work,” the shareholder letter added. “Technologies like Zoom make it possible to work from home. Airbnb makes it possible to work from any home. This newfound flexibility is bringing about a revolution in how we travel.”
The company’s stock was up about 11 percent one hour into trading on Friday.