Airbnb reported a loss of $3.89 billion in its first earnings report since its IPO late last year.
Short-term rental booking company Airbnb’s stock bounced as high as up 4% and down as much as 1% in after-hours trading on Thursday as the company posted growing losses and a decline in revenue and bookings in its fourth-quarter earnings.
The company posted a net loss of $3.89 billion in the fourth quarter. That was down 1,005% from a loss of $352 million a year prior. Airbnb attributed much of the loss to charges related to the company’s initial public offering in December.
Revenue fell to $859 million, down 22% year-over-year from $1.11 billion. Fourth quarter revenue was also down nearly 36% from $1.34 billion in the third quarter.
The company also announced that it is expecting the year-over-year decline in first-quarter revenue will be less than that of the decline the company saw in the fourth quarter.
Airbnb said it anticipates that year-over-year comparisons for gross booking value and nights and experiences booked in the first quarter will be higher than those a year prior but lower than the first quarter of 2019.
The company said it continues “to have limited visibility for growth trends in 2021 given the difficulty in determining the pace of vaccine roll-outs and the related impact on willingness to travel.”
Thursday’s earnings report is Airbnb’s first since the company went public in December.