Tracking Airbnb’s Gross Margins

Let’s take a peek inside Airbnb, a company widely expected to list next year.

Airbnb would make the pair a trio, helping cement the method of going public as the new way that cash-rich private technology companies debut.

The new numbers let us pry into Airbnb’s business and answer a question that recent news has made pertinent: how strong are Airbnb’s gross margins?

The question matters because we’ve recently seen a number of venture- and private-equity backed companies with moderate gross margins struggle post-IPO.

So let’s take a look at Airbnb’s gross margins and ask a question or two about its revenue quality.

From this, we can see that Airbnb’s gross margins are strong but not quite SaaS-level.

It’s impossible to tease out precisely what its inclusion would do to Airbnb’s gross margins, but it wouldn’t help.

How investors decide to vet customer care as a cost will change Airbnb’s revenue quality.

Full Article