Airbnb stock market filing shows profitable quarter after deep cuts

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Airbnb Inc. unveiled documents relating to its initial public offering on Monday, showing the house-sharing giant made a profit in the third quarter after the coronavirus pandemic forced it to review its operations and cut costs.
The company’s revenue for the three months ended Sept. 30 fell 18% to $ 1.34 billion from the same period a year earlier, as the pandemic continued to hurt bookings. But deep cost reductions, combined with higher revenue from previous quarters, again led to a profit of $ 219 million. The Wall Street Journal reported last month that Airbnb would be profitable during the period.
Airbnb lost $ 697 million in the first nine months of the year, more than double what it lost the year before, underscoring the toll of the health crisis. Revenue fell 32% over the nine-month period.
The home-sharing platform’s ability to return to profitability and make a looming public offering shows how unpredictable – and ultimately navigable – this year is for some companies. When the pandemic hit China and then the world, travel companies like Airbnb faced a drastic drop in demand. But then, customers, some newly able to work remotely, started turning to Airbnb about hotels to escape the cities or take a manageable vacation.
Airbnb has warned, however, that a recent surge in Covid-19 infections in Europe could dampen its outlook for the fourth quarter.

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