Airbnb books first full-year profit in 2017 as China business takes off -

Airbnb books first full-year profit in 2017 as China business takes off

Airbnb books first full-year profit in 2017 as China business takes off

Airbnb is about to ring in its first full yr of profitability, placing it in a uncommon class amongst giant venture-funded Silicon Valley firms.

Laurence Tosi, chief monetary officer of the house sharing firm, tells CNBC, “the third quarter was the strongest quarter within the firm’s historical past and this yr, we can be worthwhile, as measured by EBITDA.”

A supply aware of Airbnb’s financials stated that the corporate will finish 2017 with bookings up roughly 50 p.c from 2016.

CNBC reported beforehand that income final quarter hit about $1 billion, up greater than 50 p.c from the identical interval final yr.

Making a living — not dropping it — places Airbnb in stark distinction to different tech upstarts like Uber, Lyft and Spotify.

Uber’s losses widened final quarter to $1.46 billion, a soar of practically 40 p.c yr over yr, because the ride-hailing firm confronted elevated competitors from world rivals like Didi, and at residence, as Lyft positive factors market share.

As Uber retreats from world markets like China and Russia, Airbnb is scaling up its worldwide presence. To woo Chinese language customers, it rebranded its Chinese language operations with a Chinese language title, “Aibiying”, and CEO Brian Chesky pledge to double funding.

In line with the corporate, that push is displaying early outcomes. Airbnb tells CNBC that visitor arrivals at listings in China grew 180 p.c from the earlier yr to 1 million within the third quarter, making the market its second fastest-growing nation through the interval, after Cuba. Simply three years in the past, in 2014, Airbnb had roughly ten thousand visitor arrivals in China within the third quarter.

Airbnb expects to finish 2017 with one other China milestone — it is the highest trending nation for vacationers on New Years Eve, with the town of Suzhou, about 60 miles from Shanghai, taking the highest spot.

However the firm is dealing with challenges in China too — fierce competitors from native rivals, an abrupt govt departure and regulatory crackdowns. Chinese language residence sharing platform, Xiaozhu, raised $120 million in a funding spherical led by Jack Ma’s Yunfeng Capital this yr whereas one other, Tujia, tapped traders for $300 million, led by Chinese language on-line journey big Ctrip. In October, the top of Airbnb’s China enterprise left simply 4 months after taking the place.

Past China, Airbnb confronted different challenges in 2017. Progress of listings is slowing in a few of Airbnb’s greatest cities, the place it additionally confronted stricter rules.

Buyers have targeted on the intense spots, placing in one other $1 billion into the startup, bringing its valuation to $31 billion — greater than the valuations of publicly traded lodge giants Hilton and Hyatt.

Correction: A earlier model of this story misspelled Laurence Tosi’s first title.