Airbnb $ABNB (+1.41%) is now quietly and secretly generating 4.5 billion US dollars in operating cash flow per year - and the trend rising.
The free cash flow margin has also passed the 40% mark exceeded. This feat accomplish only a few companiese.g. Visa $V (+0.33%) / Mastercard $MA (+1.7%) , MSCI $MSCI (+0.94%) and Nvidia $NVDA (-1.35%) .
The sales growth in the core business is slowing down, but is still at 12% per year - despite unspeakable and often false headlines in the media about regulation and competition.
The management plans to increase sales growth again accelerate: off we go from May with the large-scale launch of "Experiences" and other services for guests and hosts.
"Starting in 2025, each year we will launch 1-3 new businesses that could eventually generate over a billion dollars in revenue per year (starting with travel and then moving away from the core); they are not gonna be capital intensive and they all gonna be similar margin to the current business because we are probably going to have a similar take rate." (CEO in October 2024).
The following are conceivable in the long term
- Experiences / activities (when traveling or in the home town)
- Advertising on the platform
- Concierge services
- Flights / rentals (cars, boats)
- Loyalty program (monthly subscription for frequent travelers with comprehensive benefits, discounts, exclusive accommodation, premium customer service, access to gyms, transport, food deliveries)
- Community / Social+ (networking with other local travelers, e.g. for restaurant or concert visits)
- Services for hosts (networking with craftsmen, designers, cleaning staff)
- ... and much more
Airbnb is valued with a forward PE of 24.2 (FY26) and a forward P/OCF of 15.3 (FY26) both of which are below the long-term averages.
Airbnb is rarely priced close to or below the €100 mark. $ABNB (+1.41%) is rarely available.
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