Airbnb and DoorDash went public at the same time but see very different paths post-pandemic


In a letter to investors, Airbnb stated it’s “preparing for the travel rebound” in 2021 after seeing bookings by way of its platform drop 41% in 2020 as folks largely stayed house resulting from the pandemic.

“As the vaccine is rolled out and restrictions lift, we expect there will be a significant travel rebound,” the firm wrote in the letter.

DoorDash, against this, has benefited tremendously from folks ordering meals and important objects whereas staying at house, with income of $2.89 billion final yr, greater than tripling from the yr prior. “While the Covid-19 pandemic was a tailwind for all online commerce in 2020, we are proud of the outsized gains we made relative to category peers,” the firm stated in its letter to buyers.

But there’s some trigger for concern forward. While the firm stated it hopes “markets will begin to open up soon,” it additionally hinted at a ensuing unfavourable influence on its enterprise. DoorDash stated that this return to regular may lead to “declines in consumer engagement and average order values, though the precise amount remains unclear.”

While shares of Airbnb had been basically flat in after-hours buying and selling Thursday following the earnings report, DoorDash inventory fell greater than 11%. Both corporations stay nicely above their IPO costs.

For now, each corporations proceed to face challenges.

Despite sturdy income development in the fourth quarter, DoorDash’s losses grew, too. It misplaced $312 million in the quarter, in comparison with $134 million throughout the same interval a yr earlier. The firm had turned its first revenue — $23 million — in the second quarter of 2020, earlier than reporting losses once more in the third quarter.

Airbnb, in the meantime, posted a staggering lack of $3.9 billion in the fourth quarter, with $2.8 billion of that associated to stock-based compensation. The firm stated it misplaced $4.6 billion in 2020.

In its earnings report, Airbnb centered on the undeniable fact that its income for the fourth quarter was down “only 22% year-over-year, demonstrating Airbnb’s resilience.” It introduced in income of $859 million in the fourth quarter, regardless of surges in coronavirus instances.



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