Airbnb IPO submitting exhibits slowdown in income development on account of COVID-19
© Reuters. FILE PHOTO: Small toy figures can be seen in front of the Airbnb logo
(Reuters) – Start-up Airbnb Inc released documents for its initial public offering on Monday that showed a slowdown in its core business due to the COVID-19 pandemic, despite preparing for one of the most anticipated public debuts in recent years .
The listing is expected in December and would complete a blockbuster year for IPOs as companies benefit from a stock market rally in the second half of the year, fueled by both monetary and fiscal stimuli to help mitigate the effects of the pandemic.
Airbnb reported revenue of $ 2.52 billion for the nine months ended September 30, compared to $ 3.7 billion last year, according to the S-1 announcement. Net losses increased from $ 323 million a year ago to $ 697 million.
The startup said sales growth was badly impacted by the pandemic and warned that it will continue to slow down in the future.
Airbnb decided in May to lay off 25% of its workforce, cease marketing for the year, and seek emergency funding of $ 18 billion from investors including Silver Lake and Sixth Street Partners.
It has since bounced back by focusing on listing houses outside of cities that people would want to rent during the pandemic.
Airbnb plans to list on the Nasdaq under the symbol ABNB.
Reuters first reported in October that Airbnb plans to raise around $ 3 billion on its IPO, which could be worth over $ 30 billion.
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