Airbnb used to be the second highest-valued super unicorn in the United States, and has already achieved profitability, but it was “unlucky” in 2020.
Editor’s note: This article comes from the WeChat public account “Lazy Bear Sports” (ID: lanxiongsports) , author: Xin Xiaotong.
The moment the Tokyo Olympics announced an extension, Brian Chesky may feel a twitching heart. The Airbnb co-founder and CEO put the company’s IPO heavyweight on the Tokyo Olympics this year. Although it is the latest top sponsor of the International Olympic Committee (IOC), Airbnb is undoubtedly the most affected by the delay of the Olympics. Not only has the IPO become slim, but even the entire company’s operation has been in trouble.
According to the information, Airbnb said at a recent investor conference that revenue in 2020 will be 54% lower than expected at the beginning of the year. The Wall Street Journal previously predicted that Airbnb losses will reach $ 1 billion in the first half of 2020.
This also explains why the company raised US $ 1 billion from private equity firms Silver Lake and Sixth Street Partners in an almost “usury” form, with annual interest rates of 11% -12%.
The Wall Street Journal reported that Airbnb provided investors with warrants that could be converted into stocks. The company ’s valuation is $ 18 billion, which is more than the company ’s internal valuation of $ 26 billion in the previous week ’s report. Decreased by 31%. Airbnb was last valued at US $ 31 billion in 2017 and has now shrunk by more than 40%.
Airbnb has suspended recruitment, and $ 800 million in marketing expenses has been temporarily shelved. The founders decided not to receive wages for the time being, and company executives also cut their salaries by 50% in the next six months.
Reuters quoted a source as saying that with $ 1 billion raised, Airbnb currently has $ 4 billion in cash flow on the books. In addition, Airbnb has a $ 1 billion credit line that has not been used. As for whether Airbnb can rely on this money to survive the existing crisis, people have mixed views.
On April 17, the information held an online forum to discuss the survival and development of Airbnb. AirDNA analyst Scott Shatford is optimistic. He said that Airbnb’s orders on the seashore and mountain areas have reached their peak in recent years, which is the reaction of the epidemic.
However, the share of financial services company Cowen Inc.