Airbnb, Inc. (ABNB) Q4 2022 Earnings Call — Corrected Transcript (14-Feb-2023)

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Corrected transcript, dated 14-Feb-2023, of Airbnb, Inc.'s Q4 2022 earnings call, prepared by FactSet CallStreet. Brian Chesky, Chairman, Chief Executive Officer & Co-Founder, states that 2022 revenue of $8.4 billion grew 40% year-over-year, that net income was $1.9 billion and free cash flow was $3.4 billion, and that Q4 net income was $319 million. Chesky also states that Airbnb ended 2022 with 6.6 million active listings and that head count is down 5% compared to 2019 while revenue is up 75%. In the question-and-answer section, Jed Kelly of Oppenheimer asks about urban supply and head count, and Chesky and David E. Stephenson, Chief Financial Officer & Head-Employee Experience, answer.

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Corrected Transcript

14-Feb-2023

Airbnb, Inc. (ABNB)
Q4 2022 Earnings Call

Total Pages: 24
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Airbnb, Inc. (ABNB) Corrected Transcript
Q4 2022 Earnings Call 14-Feb-2023

CORPORATE PARTICIPANTS
Ellie Mertz David E. Stephenson
Vice President-Finance, Airbnb, Inc. Chief Financial Officer & Head-Employee Experience, Airbnb, Inc.
Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc.
.....................................................................................................................................................................................................................................................................

OTHER PARTICIPANTS
Jed Kelly Chris Kuntarich
Analyst, Oppenheimer & Co., Inc. Analyst, UBS Securities LLC
Richard J. Clarke Kevin Kopelman
Analyst, Bernstein Autonomous LLP Analyst, Cowen and Company
Ronald Josey Stephen Ju
Analyst, Citigroup Global Markets, Inc. Analyst, Credit Suisse Securities (USA) LLC
Mark Mahaney Doug Anmuth
Analyst, Evercore ISI Analyst, JPMorgan Securities LLC
Brian Nowak Nicholas Jones
Analyst, Morgan Stanley & Co. LLC Analyst, JMP Securities LLC
Lee Horowitz Bernie McTernan
Analyst, Deutsche Bank Securities, Inc. Analyst, Needham & Co. LLC
John Colantuoni Thomas White
Analyst, Jefferies LLC Analyst, D.A. Davidson & Co.
Mario Lu Deepak Mathivanan
Analyst, Barclays Capital, Inc. Analyst, Wolfe Research LLC
Justin Post
Analyst, Bank of America/Merrill Lynch

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Airbnb, Inc. (ABNB) Corrected Transcript
Q4 2022 Earnings Call 14-Feb-2023

MANAGEMENT DISCUSSION SECTION
Operator: Good afternoon, and thank you for joining Airbnb's Earnings Conference Call for the Fourth 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-Finance, Airbnb, Inc.
Thank you. Good afternoon, and welcome to Airbnb's fourth 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 fourth quarter of
2022. These items were also posted on the Investor Relations section of Airbnb's website. During the call, we'll
make brief opening remarks and then spend the remainder of time on Q&A.

Before I turn it over to Brian, I would like to remind everyone that we will be making forward-looking statements on
this call that involve a number of risks and uncertainties. Actual results may differ materially from those expressed
or implied in the forward-looking statements due to a variety of factors. These factors are described under
forward-looking statements in our shareholder letter and in our most recent filings with the Securities and
Exchange Commission.

We urge you to consider these factors and remind you that we undertake no obligation to update the information
contained on this call to reflect subsequent events or circumstances. You should be aware that these statements
should be considered estimates only and are not a guarantee of future performance.

Also during this call, we will discuss some non-GAAP financial measures. We provided reconciliations to the most
directly comparable GAAP financial measures in the shareholder letter posted to our IR website. These non-
GAAP measures are not intended to be a substitute for our GAAP results.

And with that, I will pass the call to Brian.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc.
All right. Well, thank you very much, Elie, and good afternoon, everyone. Thanks for joining. Before I share our
results, I want to tell a quick personal story. As you may have seen, I've started hosting again. Last November, I
listed my guest room on Airbnb. My listing is called Beyond the Airbed. And the room guest's stay in is
nostalgically themed around the early years of Airbnb. There's memorabilia in the walls.

From the receipt for the original airbed to old photos of me [ph] heckling (00:02:34) boxes of Obama O's and
Cap'n McCain's breakfast cereal. When guests arrive, I had welcome basket waiting for them. And the first night
we make dinner together, followed by desert. We bake Chesky's Chips, chocolate chip cookies from my cherished
family recipe, that I got off Google.

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The next day, we tour the Airbnb office with my golden retriever, Sophie Supernova, and I tell the story of building
Airbnb. Now why am I doing this? Well, because I love hosting. Joe and I were the first host on Airbnb 15 years
ago. And having guests staying at your home with you is the original idea behind Airbnb. It's been an amazing
way to connect with people. But I also believe that companies that make the best products make products for
themselves.

And Airbnb will only be as successful as our host. And the best way to understand our host is to be one. Since
I've resumed hosting, I've got new first-hand insights that have informed some of the new products we'll be
releasing, including some exciting updates this May as part of our 2023 summer release.

Now before we get into our quarterly results, I want to recap the full year of 2022. While we're three years out
from the start of the pandemic, we are still living with its impact. And we've also seen high inflation, recessionary
fears and the war in Ukraine, all of which we're still dealing with in 2023. And yes, through all this, people continue
to travel, and 2022 was a record year for Airbnb.

Revenue of $8.4 billion grew 40% year-over-year, and when you exclude foreign exchange, our revenue
increased by 46% year-over-year. Net income was $1.9 billion, which marks 2022 as our first profitable year – full
year on a GAAP basis.

And finally, free cash flow was $3.4 billion. And this $3.4 billion of free cash flow represented a free cash flow
margin of over 40%. And because of our strong balance sheet, we are able to begin buying back stock last year,
and we repurchased $1.5 billion in shares in just the past five months.

Now during the height of the pandemic, we made some very difficult choices to reduce our spending, making us a
leaner and more focused company, and we've kept this discipline ever since. And over each of the past two
years, we've only modestly increased our head count. In fact, compared to 2019, our head count is actually down
5%, while our revenue is up 75%. And every single quarter in 2022 outperformed past comparable periods.

In Q4, net income was $319 million. Now this is $264 million higher than a year ago. Adjusted EBITDA was $506
million, which is 52% higher than Q4 of 2021. And we generated $455 million of free cash flow, and this is 20%
higher than Q4 2021. Now during the quarter, we saw a number of positive business trends.

First, guest demand in Airbnb remained strong. Nights and experiences booked increased 20% in Q4. We had
our highest number of active bookers ever in Q4, demonstrating guest excitement to travel on Airbnb despite
evolving macroeconomic uncertainties. And during the quarter, we also continued to see guest booking trips
further advance, supporting a strong backlog for Q1.

Second, guests are increasingly returning to cities and crossing borders. And this is the bread-and-butter of
Airbnb before the pandemic. Now, both segments continued to accelerate, while non-urban and domestic travel
remained strong, cross-border gross nights book increased 49% compared to last year. High-density urban nights
grew 22%. And globally, we saw cross-border travel to all regions increase, despite continued foreign currency
volatility.

Third, the guests continue to book longer stays on Airbnb. During Q4, long-term stays remained stable from a
year ago at 21% of total gross nights booked on Airbnb. And finally, we saw tremendous growth in our supply on
Airbnb. We ended 2022 with 6.6 million active listings. Now excluding all the Mainland China listings we removed

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in July, we grew supply by 900,000 listings, or 16% compared to a year ago, representing an acceleration in
growth in listings relative to Q3.

Now why are listings accelerating in growth? We believe there's probably two factors that drove this growth. First,
demand drives supply. Hosts are attracted to supplemental income they can earn on Airbnb, which is often critical
during tough times. Second, our product improvements are working. Over the past two years, we've made it more
attractive and easier to become a host. Just this past November, we introduced Airbnb Setup, where prospective
hosts can connect with Superhosts for free one-to-one guidance all the way through their first reservation. The
number of new active hosts recruited with the help of our Superhosts increased by more than 20% compared to
prelaunch. But we are not stopping there.

In 2023, we're focused on three strategic priorities. First, we want to make hosting mainstream. If you're listening
to this call, you've likely traveled an Airbnb or you know someone who has. We want hosting on Airbnb to be just
as popular, and to achieve this, we'll continue to raise awareness around hosting, make it easier to get started,
and provide even better tools for host.

Second, we are perfecting our core service. We want people to love our service, and that means obsessing over
every single detail. And we've listened to our hosts and guests, and based on their feedback, we're making a
large number of upgrades to our service this year, including improving customer service, making it easier to find
the right home, and delivering greater value and much, much more. And you'll see more of this in the forthcoming
– in the coming months, especially our summer release.

And finally, third, we're expanding beyond the core. We have some pretty big ideas for where to take Airbnb next.
And this year, we're going to build the foundation for future products and services that will provide incremental
growth for many years to come.

So with that, Dave and I look forward to answering your questions.

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QUESTION AND ANSWER SECTION
Operator: Thank you. [Operator Instructions] Your first question today comes from the line of Jed Kelly with
Oppenheimer. Your line is now open.
.....................................................................................................................................................................................................................................................................

Jed Kelly
Analyst, Oppenheimer & Co., Inc. Q
Hey, great. Thanks for taking my questions. Great quarter and great execution. Just two, if I may. Just one, can
you talk about how your urban supply is trending and sort of some of the initiatives you're doing around
apartments? And then Brian, you did mentioned head count. In Silicon Valley there's obviously a lot of layoffs.
You're one of the companies that are growing, having expanding margins. So can you talk about like your ability
to attract top tech talent to execute on some of the initiatives you just talked about? Thank you.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Yeah, absolutely. Yeah. So let's start with the first one, urban supply growth. Let me kind of first start, Jed, by just
talking a little bit more about how we think about supply. The great thing about our supply is that the vast majority
of hosts that come to Airbnb come organically, and that's because of our global network. In fact, the number one
source of host are prior guests. And in Q4, 36% of our hosts were prior guests. And one of the other things we
see is the fastest-growing market where we have supply is also the fastest-growing market where we have
demand. And I think what's happening is a lot of our hosts are regular people. And as they get more bookings,
they tend to tell their friends. And so this network is something that has a kind of self-growing effect to it.

Now in addition to that, we've been doing a number of initiatives. Number one, we've been focused to make
hosting easier with Airbnb Setup. And between that and a new campaign we've been running, Jed, called Airbnb
It, which is basically this idea that if you have a space, you have an Airbnb, between these two initiatives, we've
seen twice the amount of traffic to our host landing page, this is the landing page to learn about hosting. And then
we also have made big improvements to making hosting easier.

Now in addition, you might have seen that last November, we announced a new initiative called Airbnb‑friendly
apartments. Airbnb‑friendly apartments, I think, can unlock a large amount of inventory in multi-family homes in
urban areas, and we worked with Greystar and a number of the other largest real estate developers in the United
States. We have 175 buildings in Phoenix, in Jacksonville, in Houston, and other cities. And the response from
landlords has been very, very positive. So we are seeing a lot of traction on urban supply. I don't know, Dave, if
you want to add anything before I talk about head count.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
No. You covered really well, because this has been historic strength of ours, has been kind of the urban part of
the business, it's taken longer for that to kind of recover. It's now well above 2019 rates, and it's actually part of
the areas that accelerated our growth during the Q4. So we're very happy with where we're at with Urban. And as
Brian said, the early days of Airbnb-friendly apartments has been very well adopted, and we're excited about the
potential in that part of the business.
.....................................................................................................................................................................................................................................................................

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Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
And just on your question, Jed, on head count, something what's really interesting happened. So obviously, in
2020, we had to make some really difficult decisions, and we became a much smaller and more focused
company. And the obvious result of that is that we got more efficient and more profitable. But there was a less
obvious result.

What ended up happening is we had fewer people in meetings and people can move a lot faster. And we
concentrate all of our very best people and put them on only a few problems. I think that's been an explanation for
why the company has grown really quickly. But also, I think, it's made us a much more attractive place to work,
because it's much easier to get work done.

And we have a general philosophy that we want the very best people in every field to come to Airbnb in every
function. We're functionally organized. And I think that we're one of the few tech companies that isn't doing
layoffs. We're not cutting. We're not freezing. We're actually stepping on the gas. But in our minds, stepping on
the gas doesn't mean adding a huge amount of people, we're going to continue to stay really lean, but we're really
focused on just really hiring in key positions.

And we – and again, I kind of use this analogy that we're not building like a giant Navy, it's more like the Special
Forces, that's what we're focused on. So we've had a lot of success with talent. And of course, we're getting a lot
of inbound.
.....................................................................................................................................................................................................................................................................

Jed Kelly
Analyst, Oppenheimer & Co., Inc. Q
Thank you.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
I have to add a couple of things. One is our head count is actually still 5% below where it was in 2019, and the
revenue is 75% higher. So we're nearly twice as big as we were previously with fewer people. And I'd say other is
our Live and Work Anywhere approach, our approach to being very intentional about how we gather in person.
We believe that actually working together in person is very important, just need to do it in a very coordinated way.

So actually having people being back in the office on random days of the week is not very effective, but being –
doing it in a very controlled and planful way is respectful of employees' time and is more efficient for the company,
and our employees love it. And I think that's also enabling us to attract great talent.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Richard Clarke with Sanford C. Bernstein. Your line is now
open.
.....................................................................................................................................................................................................................................................................

Richard J. Clarke
Analyst, Bernstein Autonomous LLP Q
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Q4 2022 Earnings Call 14-Feb-2023

Hi, there. Yes. Thanks for taking my question. Two, if I may. The first one, just around, I guess, some of the
changes that might come over the coming years regard to the distribution landscape. One of your rivals is going
to wrap their vacation rental business into a loyalty program, lots of talk around conversational AI and what that
can do to the distribution landscape. So just any comments to whether Airbnb needs to do anything further on the
distribution platform.

And then second one, a little bit more prosaic, but obviously, it looks like Q4 was a very good quarter for take rate.
Have you done anything in particular there on take rate to achieve that result? Thank you.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Dave, do you want to start with take rate and I'll – with distribution program.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yes. With take rate, there is nothing particular that we've done with take rate there. They're absolute, on a time-
adjusted basis, the amount that we take from each night's stay has been very stable and so any variation in take
rate of revenue over gross booking value is just variation quarter-to-quarter. So nothing on take rate.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
And maybe, Richard, just if I – can you just clarify what you mean by distribution landscape? Do you mean like
the competitive environment or how – with the demand?
.....................................................................................................................................................................................................................................................................

Richard J. Clarke
Analyst, Bernstein Autonomous LLP Q
Yeah. The competitive landscape, yeah, competitive environment with regard to distribution, whether you see any
threat or increased threats from loyalty program wrapping around your competitors and maybe the conversational
AI that's coming into various other search platforms at the moment?
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
No. I mean, like, I think there's just two things. On the competitive front, I mean, we have a lot of competitors and
a lot of different categories. But I think Airbnb kind of stands in a class of its own. I mean, we're a noun and a verb
used all over the world, we're not just a US business, we're not just a European business, we're a global
business. We're not just vacation rentals. We're also urban and crossed border and off the grid. We're known as
an affordable way to travel, but we also have a lux offering and everything in between.

So I think, we have a pretty unique offering. And I think ultimately, 90% of our traffic comes direct. And that's
because we have something that's unique. The vast majority of our homes don't exist anywhere else. And what
we're really just focused on doing is we're obsessing over providing the very best experience for guests. And if we
do that and we perfect that experience and then we do really great marketing, I think we'll do quite well. The only
thing I'll say, Richard, on the distribution front is we have some unique assets that most other travel brands don't
have.

Let's take PR. There were 600,000 articles written about Airbnb last year. Airbnb is on social media a lot and a lot
of people are talking about Airbnb on social media. So we generally have a slightly different approach to

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Q4 2022 Earnings Call 14-Feb-2023

distribution, where we think just continually innovating on our product is great. The best loyalty program is building
a product people love so much they want to come back, you don't have to pay them to come back. And we just
take a full funnel approach to marketing around PR, and we think of our general advertising as really educating
people on new products.

Now as far as the changing landscape for technology, I'm actually very excited about the possibilities of AI. I think,
Airbnb will uniquely benefit from this. And the reason why it's because Airbnb is a fairly difficult product challenge,
which is unlike hotels, we don't have SKUs. There's no [ph] represented to (00:18:35) inventory. Every single one
of our 6.6 million listings are unique, guests left more than 100 million reviews last year. And to parse through all
these reviews is very laborious. And I think that AI is going to really benefit our long tail of data and the fact that
our search problem isn't really a search problem, so much as a matching problem, right?

If there's like 50,000 homes in a city, what's the right 1 for you, that's less of a search problem than a matching
problem. And I think that AI is going to be a really good opportunity for us. And just stay tuned for some
developments there.
.....................................................................................................................................................................................................................................................................

Richard J. Clarke
Analyst, Bernstein Autonomous LLP Q
That's great. Thanks very much.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Ron Josey with Citi. Your line is now open.
.....................................................................................................................................................................................................................................................................

Ronald Josey
Analyst, Citigroup Global Markets, Inc. Q
Great. Thanks for taking the question. Brian, you mentioned investments for 2023 and extending beyond the core,
that's been a key question that we consistently get in terms of what's next. Any insights you can provide there
would be helpful, maybe just is it building out the tech infrastructure? Or is it more sort of newer products that are
coming down the pike? And then I believe in the letter, we talked about 1.4 billion cumulative guest arrivals. And
so I was wondering, if you can talk more about the brand, the awareness overall and just that user mix in terms of
returning users versus newer users? Thank you.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Yeah. Awesome. Well, let me let me start with investments for 2023. So the good news is that though we're
investing this year in some new products and services to expand beyond the core, I don't think you're going to see
any material changes to the P&L. We kind of think like I started with me and my two friends. We didn't have very
many resources back then. And the great thing about Airbnb's business is we're essentially a global network. So I
think that we can incubate new opportunities, products and services for a relatively low amount of investment.
And as far as what you're going to see, I'd say there's going to be innovations on the guest and host side.

On the host side, our general principle is that we want to always deliver more value for host than we're charging.
And we have a 3% take rate on the host side, and we've been giving away a lot of products for free, like AirCover.
And we launched AirCover for host two Novembers ago. NPS for claims, reimbursement claims has gone up 70
points, so it's been pretty amazing. And our general view on hosts are we're going to primarily give away most of
our products, services innovation to them. But we do think, there's some opportunities for ecosystem services that
host might pay for.

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On the guest side, we started very modestly. You might have seen that we launched travel insurance, which is
now in 8 countries, and that's been really, really successful. But I think there's many more opportunities around
the like services. Obviously, Airbnb Experiences is something that we're beginning to really ramp up. And I think
you're going to see a lot more traction in that product in the coming years. And I think there's going to be just a lot
more around creating a step change in new service level and matching people to the right homes and
experiences for them.

So that's what I would say. Services on the host side, services on the guest side, there's going to be a lot of
opportunities to revisit some of the end-to-end travel opportunities that we have, and you'll – stay tuned for some
cool innovation. Oh, I'm sorry, on the brand awareness, sorry. Yeah, yeah, brand awareness. On the brand
awareness, again, we generally try to – as I said in the last part, we generally focus on a full funnel approach.
90% of our traffic is now direct. It's sustained at that since we went public, it's always been about 90%. We have
extremely high efficiency on things like performance marketing.

And generally, the way we approach our brand is that, Airbnb is a pretty ubiquitous brand. So what we really want
to do now is continue to invest in awareness around our different innovations. And there are going to be two
things. Number one, we're going to be focused on educating people on our new services and offerings. So, for
example, Airbnb Categories, we've been running campaigns around that. And people have viewed 500 million –
people viewed listings, 500 million times through Airbnb Categories. We're also continuing to raise awareness
around hosting. We're going to grow as fast as we have host. Now, as far as how much traffic is coming from
new/returning, I don't know, Dave, do you want to share anything about that for where brand is?
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. I mean the majority of our bookings come from past guests, and it's actually been the strong guest retention
that we've had over years since the beginning of Airbnb, that's been a powerful driver of our growth. But I think
what's also interesting is that, we've introduced Airbnb to millions of new users since COVID. And the
performance of those new users, the booking frequency of those new users from 2021 and that we saw into 2022
has been very strong and so, really pleased with the new users that we've been able to track that look very, very
similar to the historic type of users that we've had on Airbnb.
.....................................................................................................................................................................................................................................................................

Ronald Josey
Analyst, Citigroup Global Markets, Inc. Q
Great. Thank you, Brian. Thank you, Dave.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
You're welcome.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Mark Mahaney with Evercore. Your line is now open.
.....................................................................................................................................................................................................................................................................

Mark Mahaney
Analyst, Evercore ISI Q
Okay. Two questions, please. I know you mentioned that guest to host ratio, I think you said something like 36%
or something. I imagine you've got cohort data that shows that the percentage of guests that have converted into
being host or additionally are host is actually higher, maybe much higher. Could you just qualify that or quantify
that at all? I'm sure that's a pipeline, but just how robust is that pipeline when you look at the cohort data?

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And then just very briefly on China. Just on the China outbound, can you just remind us how material that was to
your business back when – back in 2019, so we can get a sense of – I know you've said that the China outbound
market will gradually reopen – but as it fully reopens, how much of an opportunity that is for you? Thank you.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Yeah. I mean I'll start, Mark. Yeah. We've seen that in Q4 2022, 36% of new available hosts who started out as
guest in Airbnb, this is more than prior year. So this has been going up actually like year-over-year. So that
number is going up. And it makes sense as Airbnb becomes more ubiquitous, but also it makes sense because a
lot of people, they'll connect with a host, and they realize, well, I can do this too. And the vast majority of our new
listings are by individuals, not property managers. So there's this kind of interesting network effect where guests
become host and then host become guest.

As far as China, we expect the recovery to be pretty gradual in China. We think the big prize in China is the
outbound business. We think that there are going to be hundreds of millions of people that want to leave China to
travel the world, and we think Airbnb is going to be the best way for essentially Gen Z people to travel. I think,
they really want an authentic experience when they're traveling around the world. That being said, we are
expecting a pretty gradual recovery in China.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
And China kind of pre-COVID was in the kind of low single-digit percentage of our gross booking value. So it
gives you some perspective of our opportunity. I think, we think very – could be large over an extended period of
time, but it will take a while for it to be larger.
.....................................................................................................................................................................................................................................................................

Mark Mahaney
Analyst, Evercore ISI Q
Okay. Thanks, Dave. Thanks, Brian.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
And Mark, one of the things is – just one other thing is, yeah, you are right that the cohorts are trending up. So for
example, I think in Q4 2021, 33% of guests became host; in 2020, 28%; in 2019, 23%. So, it is ticking up.
.....................................................................................................................................................................................................................................................................

Mark Mahaney
Analyst, Evercore ISI Q
Yes. That's good. That's cool. All right. Thank you.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Yeah.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Brian Nowak with Morgan Stanley. Your line is now open.
.....................................................................................................................................................................................................................................................................

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Brian Nowak
Analyst, Morgan Stanley & Co. LLC Q
Great. Thanks for taking my questions. I have two. Just the first one, and I'll talk about guests and hosts. Could
you just sort of help us understand a little bit how fast did your new guests grow in 2022? And how are you
thinking about sort of new guest growth in 2023 and sort of talk about EBITDA margins? Or what's your first cut
and how fast guests could grow this year? And then the second one, just any update on metrics or quantifying
adoption around I'm Flexible or any of the other tools that you've rolled out to sort of better improve the load
balancing between supply and demand?
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Great. Yeah, Dave, do you want to?
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. No, sure. On the new guests, we don't disclose the exact number of the new guest growth. Like I said, I
think the thing that I'm really pleased is that we've introduced Airbnb to millions of new guests since COVID and
that they're performing similarly, not even stronger than kind of historic guests in terms of their rebooking rates.
So, I feel really good about the position we have for new guests.

A big piece of it is some of the brand marketing that Brian kind of mentioned earlier, is just making sure we have a
lot of awareness of Airbnb, but just to also make sure that we're getting strong consideration of Airbnb as a true
option for them. And again, in this last several years, we've been able to introduce Airbnb to millions of new
people that might not have thought about trying us before. So I think that's been really helpful.

And I don't have a lot to say on I'm Flexible except that we have a very strong adoption of the feature that – and
we think that it's a great way for us to distribute demand to where we have supply. And the flexibility features are
a key benefit for Airbnb, because we have this more difficult problem, as Brian mentioned earlier, of matching and
trying to match the right guest to the right host, and I'm Flexible gives us the ability to do a better match.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Yeah. And one of the things I'd just say, Brian, is that we've seen a permanent like shift in some of the travel
booking behaviors on Airbnb since before the pandemic. And a lot of those changes have endured. And probably
one of the most pronounced ones is just is incremental flexibility for people.

We noticed more people are searching with more locations and using more flexibility features. And even before
we built these features, we were seeing people entering a lot of different date variations when they were
searching. And so we were just really responding to where things are going.

And I think where this goes down the road is there's always going to be business travelers and families that know
exactly where they want to go and when they want to go. But I think the long-term game here is increasingly we're
in 100,000 markets, people have not heard of 100,000 places. So the name of the game is pointing demand to
where we have available supply, and that's kind of a big part of our product strategy.
.....................................................................................................................................................................................................................................................................

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Brian Nowak
Analyst, Morgan Stanley & Co. LLC Q
Great. Thank you both.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Lee Horowitz with Deutsche Bank. Your line is now open.
.....................................................................................................................................................................................................................................................................

Lee Horowitz
Analyst, Deutsche Bank Securities, Inc. Q
Great. Thanks. So maybe on ADRs, you guys continue to surpass expectations with FX-neutral growth that
probably came in the quarter at mid-single digits up year-on-year. Would appreciate that looking at the 2023
pricing initiatives and mix will impact your ability to grow, but we've seen underlying pricing continue to offset
these mix impacts. So when you think about 2023, why can't ADRs grow again, given the strength of the overall
industry is supportive of pricing for you guys?
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. Thanks on the ADRs. Yeah, we were pleasantly – there's two edges of the ADR. ADRs were up 5% year-
over-year in Q4, excluding the impact of foreign exchange. Obviously, foreign exchange brings you down to kind
of minus 1% when you bring back nights that come, say, from euro or our GBP-denominated nights. And what we
forecasted for going forward is modest decline year-over-year in ADRs, largely driven by changes in mix, right,
people going back to cities, cities are accelerating, more cross-border travel, mix towards lower ADR regions.

It's a double-edged sword, clearly for the financials. It's helpful to have the higher ADR rates because they drive
greater revenue, greater flow-through, and greater profitability. But obviously, also ADRs are 36% higher than
they were in 2019. So it's more expensive for guests to stay on Airbnb and frankly, other places. I think the benefit
that we've had is that even while ADRs are higher, we're providing great value, right?

The ADRs on Airbnb still can provide a great location, maybe a fully stocked kitchen, a washer and dryer, all the
reasons why you might want to stay in Airbnb versus other alternatives. And so as we look forward in the year, we
just want to make sure that we continue to provide great value to our guests. And that's why we're building some
of the tools that Brian has talked about, which are things like giving tools to hosts to make sure that they
understand the prices that guests are paying and making sure that they are providing – continue to provide great
value to guests.

So, then the other thing we're doing is, even as ADRs might come down modestly through the year through –
largely through mix, and maybe some through pricing, it's just making sure that we're being really rigorous in our
cost structure to kind of support declining ADRs, which is why we anticipate our EBITDA margins for the full year
to be roughly the same as 2022, in that the headwinds from lower ADR rates will be offset by our efficiencies that
we kind of drive internally.
.....................................................................................................................................................................................................................................................................

Lee Horowitz
Analyst, Deutsche Bank Securities, Inc. Q
Great. Thanks. Helpful. And then one follow-up on supply, if I could. Clearly, the product initiatives are driving
impressive supply growth as evidenced by the accelerated rates that you guys are showing at this point. When I
think about how that plays through into 2023, is there anything that we should be thinking about that can keep you

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from maintaining at these elevated rates, particularly given the fact that you will continue to iterate on the supply
funnel to make it easier for hosts to come to the platform?
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. Very proud of the continued growth in our supply. And we highlighted it in the letter because it's super
important that we do our best to get a – have a balanced marketplace, right? If we get too much supply too
quickly, then hosts aren't happy because they're not getting enough bookings. We don't get enough supply early
enough, then guests are not happy because they don't get the kind of selection they want.

And actually, what we highlighted in the letter is that we have grown our supply by 26% since 2019, and yet our
nights and experiences booked have grown by 24%. So we've actually got a nice balance in that, and then I'm
very proud of the fact that we've had 6.6 million active listings here in the last year and 900,000 more from the
beginning of the year, which just shows the strength of Airbnb and why host want to come to where there is
demand. And then we'll just make it easier for hosts to become host on Airbnb. So this will be a forever journey for
us to keep providing supply where there is demand. And I think we've been doing it incredibly well for the last 10,
12 years, and we'll continue to do that.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Yeah. I think we ought to say, look, I think we're building a bit more of a muscle too around this. And I think it's
been a really big focus of ours. So whether it's the product innovations, the awareness, focusing on even building
supply in key markets. I think it's been a really great muscle the team has built.
.....................................................................................................................................................................................................................................................................

Lee Horowitz
Analyst, Deutsche Bank Securities, Inc. Q
Understood. Thank you.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of John Colantuoni with Jefferies. Your line is now open.
.....................................................................................................................................................................................................................................................................

John Colantuoni
Analyst, Jefferies LLC Q
Hey, thanks for taking my questions. I wanted to start with the new pricing and discounting tools that you're rolling
out. It sounds like the expectation is that they're going to be sort of a net headwind to ADR. So can you just walk
through the strategic rationale for the new products. I assume it's about sort of improved customer experience, but
it would be great to hear your perspective on that? And second, nights and experiences on a quarter-on-quarter
basis in 4Q and 1Q seem to be back on trend with the historical seasonality we saw pre-pandemic. Is this sort of
the right way to think about the trend in nights and experiences throughout the cadence of the year? Thanks.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
All right. Hey, John, I'll start. On pricing and discounts, let's just take a step back. Airbnb, we started 15 years ago.
And when we started, we started as an affordable alternative to hotels. And I think that affordability and great
value is one of the key reasons that people use Airbnb, and we have to continue to make sure that we have that
value. And as long as people feel like they have the best product at the best value for Airbnb, I think we're going
to deliver a huge amount of growth in years to come.

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And so there's really three things that we're doing. The first thing is transparent pricing with all-in pricing display.
In Europe, in many countries around the world, we actually do show total price. But in the United States, the
convention for travel companies to show a low base rate. And then when you get to check out, there's additional
fees. But we spent a lot of time listening to our guests and hosts. And we've heard from our guests, it's not – a lot
of them want to be able to see the total price upfront. And we've spent a bunch of time in December, we rolled out
total pricing includes all fees before taxes.

Since we've rolled it out, the impact on our bookings has been neutral. Now I know there was a lot of – we did –
there was a lot of speculation around what happened to show up on pricing. But I think that the response has
been very positive. And we chose a very specific implementation and the implementation we chose is a price
toggle, where you can turn it on or off. The basic idea is to give people the control of how they want to see prices,
but also the act of turning the toggle on, helps people understand why our prices are changing and why they
might be displayed different than competitors. So again, the impact has been neutral on bookings in the short run,
but I actually think the impact on booking in the long run is going to be very positive, because it's just a better
experience, and it gives people more control.

The second thing is we are now prioritizing better value listing in search results. So in other words, we're going to
take the total price in – the total price into account when we're prioritizing bookings. And then the third thing we're
going to be doing is we're building new tools, pricing tools for hosts, so that they understand the final price that
they're showing to guests. One of the things we learned when we talk to host is, they don't always know the final
price guests are paying. And if they did, they'd modulate some of the fees. I think in the short run, it may have
some modest impacts on ADR, but in the long run, I think what it's going to do is drive a lot more demand at
Airbnb. I don't know, Dave, do you want to add anything or take the second question.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
No, I think you hit on all the key points on ADR. We're not anticipating a significant decrease in ADR as a result of
these pricing tools. We just want to make sure that we're being transparent and helping host make sure that
they're setting prices that are appropriate for their listings. So, I think that on the nights and experiences trends,
we're finally beginning to reach a point where the year-over-year comparisons are much more consistent. And so I
think 2023 won't look exactly like 2022, but it's a much better guide than kind of historic years. So, we are getting
back to – you'd be able to use year-over-year as a trend line for your forecasting.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Mario Lu with Barclays. Your line is now open.
.....................................................................................................................................................................................................................................................................

Mario Lu
Analyst, Barclays Capital, Inc. Q
Great. Thanks for taking the questions. First one is on the listings growth number, the $900,000 year-over-year. I
was wondering, if you could help break down that number further. For example, were most of these listings
completely new listings or were a good portion of it reactivated say in urban areas? Just trying to see how this
growth organic versus travel normalizing. Thanks.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. I mean the real thing about listings is think about how all listings work. In any given year, we have brand
new listings, we have reactivated listings and then we have deactivated listings and some combination of each of

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those three. I'd say that the trends of each of those have been kind of up and to the right. In other words, I think
we're showing improvement in fewer deactivations and strengthening of our new activations. And so, the sum
total of each of those is all contributing towards our growth, but I don't have any other more specific breakout to
give to you.

I mean I think the other – maybe the only other highlight I would give is it wasn't in just kind of one region, like we
were seeing broad-based growth of listings around the world and then even by listing type. It was like one of the
earlier questions about how is listing growth around urban again, and urban was one of the accelerating areas. So
we've seen really nice growth in urban where that comes back. It just leads back to this marketplace dynamic that
we have for Airbnb, which is we both work hard to get listings, proactively on our own and get them more
organically where there's demand and where there's not demand, that's also where you'll see deactivations or
fewer listing growth. It tends to be self-healing over time.
.....................................................................................................................................................................................................................................................................

Mario Lu
Analyst, Barclays Capital, Inc. Q
Okay. Thanks, Dave. And the second one is on the lead time for bookings. In your outlook, you mentioned
Europeans were booking summer travel earlier this year. So any commentary you could provide on just globally
how lead times look thus far versus pre-pandemic? And any puts and takes to consider when thinking about the
20% room night growth is sustainable for the rest of the year? Thanks.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. We're really pleased with the European lead times coming up. Europeans will tend to book their summer
travel here at the beginning of the year and to see them booking even earlier on Airbnb relative to our historic
rates has been really great to see. Just, I think, shows the optimism that they have to kind of travel this summer.
And then broad-based, we are just seeing a slightly longer lead time more generally across Airbnb overall. So
again, I just think that shows a nice optimism for people feeling confident that they can book for their summer
travel season. So I think I don't have much more to say than that.
.....................................................................................................................................................................................................................................................................

Mario Lu
Analyst, Barclays Capital, Inc. Q
All right. Thank you.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Thanks.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Thanks.
.....................................................................................................................................................................................................................................................................

Operator: [Operator Instructions] Your next question comes from the line of Justin Post with Bank of America.
Your line is now open.
.....................................................................................................................................................................................................................................................................

Justin Post
Analyst, Bank of America/Merrill Lynch Q
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Q4 2022 Earnings Call 14-Feb-2023

Great. I think, you give it in the K, but can you give us the mix of Asia in 2022? I don't know if you can now. And
then secondly, how do you think about the Asia recovery in China cross-border impacting results over the next 12
months? Thanks.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. The – in the next 12 months, Asia is still recovering, right? Asia has still been down versus 2022 – I mean
2019 and – but they were the fastest kind of growing region in the fourth quarter. So we think it's pretty optimistic
about the opportunity. And as Brian even mentioned about China, like the long-term outlook for, for example,
Chinese outbound travelers is something that we feel very bullish on for over the long-term. And in terms of the
fourth quarter, APAC was 12% of the business in the fourth quarter.
.....................................................................................................................................................................................................................................................................

Justin Post
Analyst, Bank of America/Merrill Lynch Q
Okay. Thank you.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
And maybe I'll just say that I think that Asia Pacific is a huge growth area for us going forward. And it's been a
little bit of a slower recovery. And I think the reason why Asia is historically more of a cross-border market, a lot of
people in Asia basically travel across countries. They don't have as big of a domestic market in any of these
countries for the most part. And that's just been a slower recovery. But I think the one thing we've seen is that just
means probably more pent-up demand, and Asia indexes even higher on Gen Z travelers, which is a strong suit
of Airbnb. So we're really bullish over the next few years on Asia.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Lloyd Walmsley with UBS. Your line is now open.
.....................................................................................................................................................................................................................................................................

Chris Kuntarich
Analyst, UBS Securities LLC Q
Hi. Thanks for taking the question. This is Chris on for Lloyd. Just can you start by helping us think about the
range of outcomes for ADRs in the 1Q 2023 guide? I guess as we kind of lay out your guidance saying that take
rates would be very similar to 1Q 2022 levels and gets you to, say, $20.7 billion potentially of gross bookings in
1Q 2023, and you assume maybe a slight decel on room nights. I could get to a situation where ADRs are
potentially flat or better. I guess is, you're talking to ADRs being down slightly on a year-over-year basis. I guess
is – what would need to happen here for ADRs to be flat to better on a year-over-year basis in 1Q?
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Well, to be flat to better would be if there's stronger overall just pricing. And if the mix came in differently, for
example, maybe urban didn't come in quite as strong as or cross-border Latin America, Asia didn't come in quite
as strong. So a lot of our ADR forecast for Q1 comes from the anticipated continued growth of urban, cross-
border and regional mix. And that's why we're forecasting it down for – just down slightly year-over-year. The

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Q4 2022 Earnings Call 14-Feb-2023

implied take rate, it should be directionally the same as last year and maybe not precisely the same, but I think
you look back in 2022 and it will be a good guide for your take rate.
.....................................................................................................................................................................................................................................................................

Chris Kuntarich
Analyst, UBS Securities LLC Q
Okay. Got it. And just maybe one quick follow-up question on the product side as you guys were talking about
really kind of expansion opportunities. How should we be thinking about hotel within that? Or should we be
thinking about more of the expansion opportunities being related to the core business and experiences in 2023?
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Chris, I would just say, I mean all of the above. I think hotels are important ways to fill network gaps. I think people
come to Airbnb because we have something unique they can't get anywhere else. But we also have a huge
amount of traffic, and so we want to make sure people come to Airbnb, they don't leave without finding something.

So I think you can think about our product a few ways. Number one, our core business has a huge amount of
growth ahead of us, and so we just want to first perfect the core experience by making it easier to find the right
Airbnb, providing better service each step of the way and providing better value.

Next, we have a lot of emerging use cases. Those emerging use cases are longer stays, obviously, which is more
than a fifth of our nice book. We also have experiences that we're really focused on and continuing to fill out our
network gaps. And then finally, beyond just all of those are obviously new products and services over the horizon.
So we kind of have a very balanced portfolio of all of the above.
.....................................................................................................................................................................................................................................................................

Chris Kuntarich
Analyst, UBS Securities LLC Q
Great. Got it. Thank you.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Kevin Kopelman with Cowen. Your line is now open.
.....................................................................................................................................................................................................................................................................

Kevin Kopelman
Analyst, Cowen and Company Q
Great. Thanks a lot. So, a quick one. Given you have $10 billion in cash on the balance sheet and generated $3
billion in cash flow last year, not including the funds held on behalf of guests, can you just give us an update on
how you're thinking about capital allocation and share repurchases? And do you see a potential for repurchases
to go beyond offsetting stock comp? Thanks.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. We're really pleased with our cash position, right? We ended with $9.6 billion of cash on the balance sheet
at the end of the year. That is after buying back $1.5 billion in stock. We have $500 million left on the existing
repurchase approval, and we'd anticipate that we'll be executing early in the year. But clearly, we're also in – still
in growth mode, like we are using this balance sheet to make sure that we can invest in growth for the business in
the future, clearly, keep enough cash for potential M&A opportunities which could exist.

And then to the extent that we can return stock or cash to shareholders through share repurchases, that will be
our primary vehicle that you would anticipate this year. We're going to have about $1 billion of stock-based
compensation. We'll at least be offsetting that through share repurchases. But I don't have anything more to say
beyond that at this time, but we'll continue to evaluate what the appropriate amount of cash is to keep and how
much we should continue to return to shareholders.

But remember, we are still heavily in growth mode. We want to be able to invest in the long-term growth of this
business.
.....................................................................................................................................................................................................................................................................

Kevin Kopelman
Analyst, Cowen and Company Q
Thanks, Dave.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Stephen Ju with Credit Suisse. Your line is now open.
.....................................................................................................................................................................................................................................................................

Stephen Ju
Analyst, Credit Suisse Securities (USA) LLC Q
Okay. Great. Thank you. So can you talk about the typical behavior from the new hosts when they're onboarded?
Do they start making only a small number of days available? And as time goes on and they get more comfortable
with hosting, they maybe make more time slots available throughout the course of the year, because it seems like
we're all really preoccupied with the total host number, because honestly that's the only number that's disclosed,
but I'm wondering if the aggregate availability growth has historically been a number that's been much higher than
the property host growth. Thanks.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Yeah. Hey, Stephen, I can start. The general trend we see is that most people come to Airbnb with kind of a more
casual intent to host occasionally. Sometimes people come to Airbnb to host on a one-off basis. For example, this
past weekend in Phoenix, we saw a really big surge of new listings for Super Bowl. What we noticed is that over
time, hosts generally increase the number of days available, and they tend to get more productive every year, and
so more and more nights get booked on a single listing. And then we also see a number of hosts add a second,
third, or fourth listing depending upon what markets they're in.

So the general idea is that hosts get more productive, they eventually book more nights. Their ADR typically goes
up as they accumulate more reviews. One of the things we recommend new hosts do is when they don't have
reviews, to start a little bit more affordably. And then as they accumulate great reviews, they can command a little
bit higher kind of market pricing. And so those are the general trends we see. A general uptick in ADR is to get
more reviews and to build a reputation. They add more nights. And then occasionally, you'll see some people add
additional listings depending upon the kind of segment they're in.
.....................................................................................................................................................................................................................................................................

Stephen Ju
Analyst, Credit Suisse Securities (USA) LLC Q
Thank you.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Doug Anmuth with JPMorgan. Your line is now open.
.....................................................................................................................................................................................................................................................................

Doug Anmuth
Analyst, JPMorgan Securities LLC Q
Thanks for taking the questions.
.....................................................................................................................................................................................................................................................................

Doug Anmuth
Analyst, JPMorgan Securities LLC Q
I just wanted to circle back on your comments on EBITDA margins for 2023. You talked about maintaining
margins with the variable cost efficiencies kind of being the offset to lower ADRs. Just walk us through a little bit
more on those cost efficiencies that you're thinking about. And then kind of related, how should we think about
marketing spending? It sounds like you're going to shift more of the brand into 1Q. Is that just driven by a pull
forward in bookings or more just a shift in your strategy? Thanks.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. The way we anticipate our EBITDA margins for this year is that one of the headwinds is this anticipated
ADR decline that we talked about earlier on the call. And that the way in which we are going to be able to offset
the margin impact of those declines will be through fixed cost discipline. We're going to continue to grow, but
we're going to grow modestly. So think of our head count growth being in the 2%, 3%, 4% range. So we'll keep
having very good fixed cost discipline.

We've already – I'll address marketing in a minute, but – because we've already addressed lot of the marketing
reductions, but we're just seeing strong improvements in our variable cost reductions as well, everything from
community support costs, cost of payments costs, infrastructure costs. All those areas are just important and
ongoing efforts for us to drive profitability.

As I mentioned earlier, we're still in heavy growth mode. I am not in profit maximization mode. I have a long list of
things that we can invest in to drive further profitability. But I know that I can also afford, with our head count
growth, profitability improvements that can offset the ADR declines, and that's what we'll be investing in this year.
And then we can keep working on the other variable cost improvements over time.

And then in terms of marketing, we've had the major step change reduction in our marketing expense. That was
actually a strategic change all the way back in 2019. That's proven to be incredibly effective from 2020 all the way
through 2022. And what we would see in 2023 is that marketing cost as a percentage of revenue for the full year
will be about the same as what it was in 2022, but what we are doing is shifting some of the timing.

We're just getting even earlier in the year to make sure that we're getting our message out to guests all around
the world, so that they're ready to kind of make their bookings for kind of peak summer travel season, which is in
the summer. And so I think it's just we're getting more efficient and effective at the timing. And we think bringing
forward a little bit more marketing into Q1 is a more effective use of our dollars.
.....................................................................................................................................................................................................................................................................

Doug Anmuth
Analyst, JPMorgan Securities LLC Q
Okay. Thank you.

Operator: Your next question comes from the line of Nick Jones with JMP Securities. Your line is now open.
.....................................................................................................................................................................................................................................................................

Nicholas Jones
Analyst, JMP Securities LLC Q
Great. Thanks for taking the questions. Can I go back to kind of the Airbnb-friendly apartments? What does it look
like to get property managers on board with this? And I guess how much of the apartments that they're managing
start to get unlocked? And I guess what kind of runway do you see in these key markets to add on kind of
meaningfully more property managers? Thanks.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc. A
Yeah, I can start, Nick. So, yeah, I mean, this new program is something that we develop because actually, we
started getting a lot of inbound from real estate developers. And they started – we started saying, if we made our
buildings Airbnb-friendly, would it make the building more appealing, especially to young people that are moving
to markets in certain cities.

And so we did a partnership. We started with working with Greystar, Equity Residential, over 10 other companies,
and we've launched. We have 175 buildings in like Houston, Phoenix, Jacksonville and the vast majority of these
units are kind of – we expect if they were put on Airbnb that it would be a typical kind of ADR. They're usually one
bedrooms and studios. The tenants sign a sublease to a fixed number of days a year they can rent, typically less
than 180 days. So the whole idea is these are people's primary homes, and they rent them when they're gone.
And I think we're going to get a lot of demand because there's lot of benefits to landlords.

Number one, a landlord get visibility control around who's doing what in their building. Number two, they get a lot
of free demand of people that want to lease their apartments. And three, they get a cut on the commission. So
based on what we're seeing, there's been a lot of positive word of mouth, many REITs and developers are
engaging with Airbnb. We think we're going to be able to send a lot of traffic to them.

And so I think this is a program that's going to grow quite a lot. And I also think while its strategic to us beyond all
the incremental apartments that are unlocked is we're now developing relationships with many of the biggest
landlords in the United States. And if that happens, I think you're going to see leases generally being more
friendly to Airbnb.
.....................................................................................................................................................................................................................................................................

Nicholas Jones
Analyst, JMP Securities LLC Q
Great. Thank you.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Bernie McTernan with Needham. Your line is now open.
.....................................................................................................................................................................................................................................................................

Bernie McTernan
Analyst, Needham & Co. LLC Q
Great. Thank you for taking the questions. On margins. So two impacts on ADRs, the mix shift and the pricing. It
sounds like mix shift is contemplated in that flat EBITDA margin guide for 2023, but can you still achieve flat
EBITDA margins if that pricing benefit does come out modestly of ADRs. And as a follow-up, just if there's an
estimate for how much FX weighed on EBITDA margins in 2022, that would be helpful. Thank you.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. On the two impacts, I mean, as you said, the large forecast that we have for ADR moderation is due to the
mix shift. Clearly, we want to make sure that we are giving tools to hosts to price effectively so that we have great
value. We're not – it will be – time will tell how much change we're seeing ADR from those overall changes.

I do have a fair amount of levers, as I said, over time, that I can pull in order to continue to improve the cost
efficiency. And if ADRs come down more, then I will need – may need to pull a few more levers, but I feel
confident we can deliver our EBITDA margin neutral in the face of whatever ADR headwinds that we see this
year. So I think that's the main piece. And then your second question again?
.....................................................................................................................................................................................................................................................................

Bernie McTernan
Analyst, Needham & Co. LLC Q
Just if there is an estimate for how much FX weighed on EBITDA margins this year given the differential between
where revenues are generated and where the costs are in the US?
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Maybe we can follow-up off-line on that. I mean it was a material probably [several hundred million dollars, but
we'd have to give you the – maybe we could work off-line on the specific calculation.
.....................................................................................................................................................................................................................................................................

Bernie McTernan
Analyst, Needham & Co. LLC Q
Yeah. Understood. Thank you.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Great. Thanks for the call, Bernie.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Tom White with D.A. Davidson. Your line is now open.
.....................................................................................................................................................................................................................................................................

Thomas White
Analyst, D.A. Davidson & Co. Q
Great. Thanks for taking my question. Any color or metrics you guys can provide on how cohorts of guests that
you acquired during the height of the pandemic have been performing over the last several months kind of relative
to customers acquired pre-pandemic. I'm just curious whether it looks like there might be any meaningful
differences when it comes to, I don't know, frequency, spend levels, repeat rates, anything like that?
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
No, the actual frequencies take rate, spend rates have actually been very consistent with kind of pre-COVID
acquired guests. So we feel really good about the new guests coming on and having them look very similar to
historic guests, and so very consistent.
.....................................................................................................................................................................................................................................................................

Thomas White
Analyst, D.A. Davidson & Co. Q
Great. Thank you.
.....................................................................................................................................................................................................................................................................

Operator: Your next question comes from the line of Deepak Mathivanan with Wolfe Research. Your line is now
open.
.....................................................................................................................................................................................................................................................................

Deepak Mathivanan
Analyst, Wolfe Research LLC Q
Great. Thanks for taking the questions. Just a couple ones. First, it's nice to see the supply growth, but can you
talk about trends on the utilization side? I know you don't look at occupancy in a traditional sense. But any color
on how the product initiatives like changing the search experience or I'm flexible from 2022 is kind of helping with
utilization or occupancy on the platform?

And then second question, mix of long-term stays remains stable near 20%. How should we think about that for
2023? Is that a potential opportunity and an area of focus for 2023? What sort of product initiatives can you do to
kind of take that mix higher given that it obviously helps with the marketplace balance? Thank you so much.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Yeah. Thanks, Deepak. On the supply growth, I think the best measure to look at is you just look at the growth in
supply that we had versus 2019 that we grew at 26% and our Nights and Experiences booked grew 24%, kind of
largely in line. We're not seeing any major shifts in overall kind of utilization rate that give us any concern. We feel
like we continue to keep in aggregate this nice balance of growing supply and growing demand, and we want to
keep that relative balance, as I mentioned earlier in the call. If one gets out of whack too much, then either the
hosts aren't happy or the guests aren't happy. But I'm very pleased with the way in which we've been able to keep
that balanced.

And then in terms of long-term stays, I mean, if you actually rewind the tape all the way back to pre-COVID time.
Q1 of 2019, our long-term stays were about 13% of nights. By the end of the year, it was maybe 16% of nights.
So I think 13% to 16%. Last year, it was kind of 19% to 21% or so, 21%, obviously, in the fourth quarter. So it's
been elevated and fairly stable.

I think we see in Q1 this year is that we continue to see really strong growth in short-term stays and short-term
stays kind of outpacing our growth a little bit versus long-term stays during the first quarter. So I anticipate it
coming down just a little bit here in the first quarter on a mix basis, but it's largely just driven by the short-term
acceleration that we're seeing and it's still remaining significantly elevated over 2019 rates.
.....................................................................................................................................................................................................................................................................

Deepak Mathivanan
Analyst, Wolfe Research LLC Q
Got it. Thank you so much. That makes sense.
.....................................................................................................................................................................................................................................................................

David E. Stephenson
Chief Financial Officer & Head-Employee Experience, Airbnb, Inc. A
Thank you.
.....................................................................................................................................................................................................................................................................

Operator: This concludes our Q&A session for today. I turn the call back over to Brian for closing remarks.
.....................................................................................................................................................................................................................................................................

Brian Chesky
Chairman, Chief Executive Officer & Co-Founder, Airbnb, Inc.
All right, everyone. Thank you for joining us today. To recap, we had another record year in 2022. Revenue and
adjusted EBITDA were both record high and free cash flow was $3.4 billion. I'm really proud of these results. And
before I go, I just want to say how proud I am of our team.

If you think about what this team has been through the last three years, initially losing 80% of our business, kind
of rebuilding the company from the ground up and now just becoming a much more focused, disciplined
company. But this is a lot of momentum inside the company.

And looking forward, we're already seeing some really strong demand in Q1. Consumer confidence to travel
remains really high. I think part of that is like no matter what happens in the world, people want to travel. And for
many people, the office is now Zoom, the mall is now Amazon, the theater is now Netflix, and travel is going to
become a very important way that people experience the world this year.

And so therefore, this is going to be an exciting year for Airbnb and for traveling all around the world. So with that,
thank you all. And we'll talk to you next quarter.
.....................................................................................................................................................................................................................................................................

Operator: This concludes today's conference call. Thank you for attending. You may now disconnect.

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