What you need to know about Airbnb's business operation during the Coronavirus Pandemic

Airbnb (ABNB) is a housing and hospitality company. The company provides house sharing for travelers who do not want to use hotels.  This process also allows real estate owners to make extra income by leasing extra rooms or the whole apartment to strangers. In return, money exchange hands from the traveler to the property owner, the deal is done on Airbnb website, Airbnb collects the money and they later pay the host after taken their percentage. 

Airbnb recently went public and the stock price has since doubled.  In an effort to better understand how Airbnb conducts its businesses during the Coronavirus pandemic. We did some research and we found this video. 

The video above explains Airbnb's business practice before pandemic, during the pandemic and what to expect if we are able to move pass the coronavirus pandemic that is affecting many businesses worldwide.  

Airbnb earnings report snapshot 

Here is a snapshot of our Q4 and full year 2020 results, and our 2021 plan:

• Q4 2020 revenue was down only 22% year-over-year, demonstrating Airbnb’s resilience. At the depth of the pandemic, we forecasted our 2020 revenue could be less than half of what it was in 2019. Yet in the end, total revenue of $3.4 billion for 2020 decreased only
  30% compared with $4.8 billion in 2019. In Q4 2020, revenue of $859 million declined only 22% compared with $1.1 billion in Q4 2019, despite the second wave of COVID-19 cases and lockdowns the world experienced in Q4.
• Q4 2020 net income was impacted by charges related to our IPO. Charges associated with our IPO and our subsequent stock price increase contributed to our net loss in Q4 2020 and fiscal year 2020. Upon our IPO in December 2020, we recognized a non-cash stock-based compensation expense of $2.8 billion. This is much larger than a typical quarter because at
  the completion of the IPO (similar to many other companies) we were required to recognize a significant portion of all stock-based compensation provided to Airbnb employees over the last several years. The increase in our stock price also increased the value of warrants issued
  in connection with a term loan agreement entered into in April 2020. We recorded a non-cash mark-to-market adjustment of $827 million related to the warrants in Q4 2020. As a result, GAAP net loss was $3.9 billion in Q4 2020 and $4.6 billion in 2020, compared with GAAP net loss of $352 million in Q4 2019 and $674 million in 2019. GAAP net loss in the second half of 2020 was $3.7 billion, compared with $85 million in the second half of 2019.
• Q4 2020 Adjusted EBITDA was materially improved from a year ago, despite the impact of COVID-19 on our revenue. In Q4 2020, our Adjusted EBITDA was $(21) million, compared with $(276) million in Q4 2019, despite revenue being $248 million lower. In 2020, our Adjusted EBITDA was $(251) million, compared with $(253) million in 2019, despite revenue being $1.4 billion lower. For the second half of 2020, following our work to refocus the company and reduce costs, our Adjusted EBITDA was $481 million. In the second half of 2019, our Adjusted EBITDA was $37 million.1

source: Airbnb.com