Airbnb's revenue reportedly plunged 67% in the second quarter as COVID-19 wreaks havoc on its business
- Airbnb's revenue plummeted 67% in the second quarter compared to the same period last year, according to Bloomberg.
- The steep drop-off is a reflection of the impact of COVID-19, which has restricted travel across the globe.
- The company reportedly brought in just $335 million in revenue during the period ended June 30, down from more than $1 billion in the same period last year.
Airbnb is feeling the impact of the COVID-19 pandemic — the short-term rental startup's revenue plunged 67% in the second quarter of 2020, according to Bloomberg.
Revenue reportedly fell to $335 million during the period ended June 30, down from more than $1 billion during the same period last year. By contrast, Airbnb reportedly saw $842 million in sales in the first quarter of 2020.
But the company is still planning an IPO this year — possibly as soon as August, sources told Bloomberg and The Wall Street Journal. Airbnb was reportedly planning to make its public offering earlier this year, but those plans were thrown off track by the unexpected impact of COVID-19 on its business.
An Airbnb spokesperson declined to comment.
CEO Brian Chesky warned in May that the company expected its 2020 revenue to be less than half what it was last year. In the months that followed, the company recently laid off 25% of its staff and hundreds of contract workers, froze its marketing, and borrowed $2 billion to help stay afloat through the pandemic.
According to Bloomberg, Airbnb recorded a loss of $400 million in the second quarter before interest, taxes, depreciation and amortization. That loss likely does not include restructuring charges related to the 1,900 job cuts or other items it could classify as one-time charges, meaning its net loss is almost certainly wider than that.
Airbnb hosts have felt the pain of COVID-19 related travel restrictions for months. As coronavirus lockdowns first began to set in, hosts protested the company for allowing guests to cancel bookings free of charge. Months later, hosts are still complaining of missing payments, CNBC reported this week.