Airbnb’s Focus Changes From Search To Brand Marketing, It’s Paying Off
Airbnb’s Focus Changes From Search To Brand Marketing, It’s Paying Off
ABNB earnings call for the period ending September 30, 2022.
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good afternoon, and thank you for joining Airbnb’s earnings conference call for the third quarter of 2022. As a reminder, this conference call is being recorded and will be available for replay from the investor relations section of Airbnb’s website following this call. I will now hand the call over to Ellie Mertz, VP of finance. Please go ahead.
Ellie Mertz — Vice President of Finance
Good afternoon, and welcome to Airbnb’s third quarter of 2022 earnings call. Thank you for joining us today. On the call today, we have Airbnb’s co-founder and CEO, Brian Chesky; and our chief financial officer, Dave Stephenson. Earlier today, we issued a shareholder letter with our financial results and commentary for our third quarter of 2022.
All right. Well, thank you, Ellie, and good afternoon, everyone. Thanks for joining. Q3 was another record quarter despite macroeconomic headwinds.
We had nearly 100 million Nights and Experiences Booked, which is up 25% year over year; gross booking value was $15.6 billion, this is up 31% year over year; revenue grew 29% year over year to $2.9 billion, our highest ever; and when you exclude foreign exchange, our revenue increased 36% year over year. Now we also had our most profitable quarter ever. Net income was $1.2 billion. And this is up $400 million from a year ago.
Now this represents a 42% net income margin. Adjusted EBITDA was $1.5 billion, also our highest ever. And we generated $960 million of free cash flow. In fact, over the last 12 months, we generated $3.3 billion in free cash flow.
What our Q3 results demonstrate is that Airbnb continues to drive growth and profitability at scale. And even with the macroeconomic uncertainties, we believe that we’re well-positioned for the road ahead. Now why is this? Well, new use cases such as long-term stays and nonurban travel are here to stay. And this is because millions of people now have the flexibility that they didn’t have before the pandemic.