Airbnb Lost $100 Million the Second Quarter
A report from The Information shows a company losing money.
Airbnb is losing money ahead of its public offering. During the second quarter of 2018, Airbnb earned a $10 million profit. A year later, it lost $100 million before interest and taxes for Q2 2019.
The Information released a report showing that the company is investing prior to its planned 2020 IPO. The $100 million loss comes a quarter after the firm saw a loss of $306 million in the first quarter. The Information cited higher marketing costs. The recent losses could negatively impact the perception of the firm.
Airbnb and the 2020 IPO
The report comes a day after various outlets reported a key departure for Airbnb. The firm’s Chief Operating Officer Belinda Johnson is stepping down on March 1. Johnson told employees of her plans on Friday, according to CNBC. Johnson said she wants to spend more time with her family, particularly her children. She said that the job consumed too much time.
“As I was watching her I realized, she’s not a child anymore, she’s a young woman,” Johnson wrote. “When did that happen? I can never get back the missed birthday parties and the school plays where my husband saved a seat that remained empty, and the time a dragonfly landed on her cheek and didn’t fly away. I’ve seen a picture of it, but I wasn’t there.”
Johnson will join the company’s board of directors. She has been the company’s No. 2 employee for eight years and has drawn comparisons to Sheryl Sandberg at Facebook.
Airbnb launched in 2008. Fifteen venture capital companies have provided $4.4 billion in funding rounds, according to Crunchbase. The firm has a current valuation of $35 billion.
The company currently has seven million listings in 100,000 cities. The firm said it surpassed $1 billion in revenue during the second quarter. This is the second quarter in history that it topped $1 billion in revenue for a quarter, according to company founders.
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