Airbnb finally files for end-2020 IPO
By Caoimhe Toman
Date: Monday 23 Nov 2020
(Sharecast News) - Airbnb finally filed for its long-awaited initial public offering on Monday and is reportedly aiming to raise $3bn in a transaction that would give it a valuation of $30bn.
Its IPO filing had been delayed out of concerns relating to the US Presidential election, but released financial details on Monday and will probably go public at some time in December.
The future of the business, which was deeply affected by the coronavirus pandemic, now depends on how society will continue to be impacted by the virus and the lockdowns that come with it.
The company went from 75.8m "Nights and Experiences booked," defined as the number of nights booked for stays and seats booked for experiences, in the fourth quarter of 2019 to just 28m in the second quarter of 2020. That number did however recover to 61.8m in the third quarter of 2020 3Q, showing that Airbnb could recover once customers began traveling again.
Airbnb has been taking countermeasures and adapting to the crisis. The company has laid off employees and cut back expenses, but has also found new ways to attract customers.
On the flipside, it faces risks including competition from other companies and regulatory challenges from state and local governments.
Airbnb isn't alone among the tech firms looking to float before year end, with Affirm, C3.ai, Roblox and Wish all in line for a flotation and listing.
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