4 ms·
They lost $600 mil in _2019_? And $700 mil so far this year? Woah.
by tannhauser23 6y ago
They lost $600 mil in _2019_? And $700 mil so far this year? Woah.
- paxys 6y agoKeeping losses flat while going through the pandemic is a feat in itself tbh.
- darkwizard42 6y agoTo be fair they funded that by dropping a ton of spend out of the marketing (which makes sense). I know there were layoffs so I'm sure they were in full cost-cutting mode by the time the pandemic hit full swing
- cinntaile 6y agoWell it's a software company after all, all they had to do was cut their ad spending. It's the hosts that are in trouble instead.
- darkwizard42 6y agoTo be fair the loss in 2019 is largely attributed to the drastic increase in marketing spend, but also their increase in product development cost line item. Neither of those increases led to a significant increase in revenue though. Makes me wonder what the 2020 story would have been without COVID. Personal bias makes me think Airbnb is here to stay and the marketing spend can definitely be cut back. The timeline to revenue growing back against their costs is probably 2 years with this pandemic though and that hurts anyone who is looking to invest and hold.