The best regulated crypto exchange
Find out why?
50 BTC prize pool!
Get your share!
I'm in

Airbnb to swing to net loss ahead of 2020 market launch

By Amanda Cooper

Rising costs at the home-rental company wipe out profits

Home-sharing company Airbnb lost millions over the course of 2019, swinging to a net loss ahead of its hotly anticipated IPO this year, on the back of rising costs, according to the Wall Street Journal.

The company recorded a $322 million net loss for the first nine months of 2019, compared with a $200-million profit in the same period in 2018.

According to the report, Airbnb was valued at $31 billion in a 2017 funding round, but could be worth less than this, the WSJ quoted sources as saying.

Airbnb had said last year it planned to go public this year. Market-watchers said its previous profitability had been expected to give it an edge with investors, particularly given the initial disappointment of some of 2019’s big tech IPOs, such as ride-hailing services Uber and Lyft, or virtual pinboard Pinterest.

Any listing this year would likely be in the third quarter or later.

The company reported a rise in revenue to $1.65 billion, but this was offset by rising costs.

After a string of safety incidents, including a fatal shooting in California last October that prompted the company to issue a global ban on “party houses”, Airbnb has been hit by growing expenses linked to security issues on its online platform.

Airbnb has increased the number of listings to over 7 million worldwide, from just one at its official launch back in 2008. According to the company’s website, around 2 million people are staying at one of its listings on any given night.

FURTHER READING: Airbnb to ban ‘party houses’ after California Halloween shooting


Like to share your thoughts and ideas about crypto and trading? You could join us as an external author. Email us on [email protected] to find out how you could become a contributor.
Subscribe to news
iMac Image
The most beautiful trading app
google play storeapple store
iPhone Image
iPhone Image