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Consider a few things before calling the market crazy: Total revenue to date: around $2B. Revenue in millions Y by Y since 2011: 40,180,250,450,850 - See the
by rokhayakebe 11y ago
Consider a few things before calling the market crazy:
Total revenue to date: around $2B.
Revenue in millions Y by Y since 2011: 40,180,250,450,850 - See the growth?
Total money spent to reach nearly $2B in aggregate revenue: $2.5B
We do not know their cost of customer acquisition. We do not know their marketing spend. We do not know the median lifetime value of customers. We are not sure what other options users think/know they have.
For a business pulling in $1B in yearly revenue, raising $1B is not necessarily significant.
- benatkin 11y agoDoes that revenue figure include the percent paid to the hosts with each booking?
- adventured 11y agoTheir take is nowhere near $1 billion in annual revenue. It would imply they're taking a thousand dollars in sales or so per listing per year at this point. That would more than require every listing be sold out at all times.
- benatkin 11y agoSeems incidental to me that money is technically going to their bank account(s) while the payments are being processed.
- morgante 11y ago> It would imply they're taking a thousand dollars in sales or so per listing per year at this point. That would more than require every listing be sold out at all times. I don't follow. Their take is ~10%, so $1,000 of revenue for them requires $10,000 in annual bookings. If every listing is listed 100% of the time, that would imply an average rate of $27/night. (Highly unlikely.)
- rokhayakebe 11y agoActually, it is near $1B. Their gross is in the billions.
- rokhayakebe 11y agoRevenue, not bookings. These numbers (if correct) would represent 15% of bookings.
- joelrunyon 11y agoThis is the funny math that got Groupon in trouble when it IPO'd. You can't count revenue as the main metric. You have to look at costs & profits. Any bootstrapped business will tell you this - but somehow everyone forgets it when it's VC money.
- morgante 11y agoP&L is not a useful metric for growing startups. If the lifetime value of an Airbnb customer exceeds their marginal cost (including COA), Airbnb should buy customers all day long. I strongly suspect Airbnb's marginal returns are fantastic. Their model seems highly profitable on a unit basis.
- joelrunyon 11y agoI'm not saying it is or isn't - what I'm saying is you have to realize that revenue ≠ profit and failure to do so gets you something like what happened to Groupon.