Airbnb loses $349 million on Italian tax dispute but posts revenue gain, sees strong demand ahead
Airbnb says that it lost $349 million in the fourth quarter because of an income tax settlement with Italy
Airbnb said Tuesday that it lost $349 million in the fourth quarter due to an income tax settlement with Italy, but bookings and revenue rose, and the short-term rental giant said demand remains strong.
The company forecast first-quarter revenue that would meet or beat Wall Street expectations.
However, the pace of bookings growth is likely to “moderate” from the fourth quarter into the first, and the early timing of Easter could hurt growth in the second quarter, Airbnb said.
CEO Brian Chesky said on a call with analysts that Airbnb is “perfecting” its business — making pricing more transparent, reining in exorbitant cleaning fees, and reducing cancellations by hosts. Now it plans to go beyond its core.
Chesky said the company will build out its rental platform in countries where it isn’t as strong as the United States. He said that is already underway in Germany, Brazil and South Korea, and will soon be tried in Switzerland, Belgium and the Netherlands.
“But this is only one piece of a much bigger strategy because we have always believed that Airbnb was destined to offer more than just a place to stay,” he said.
Chesky, however, gave no details about the “multiyear journey,” only promising news late this year. Rivals such as Vrbo parent Booking Holdings and Expedia Group also make money from things like flight and rental-car listings.
The fourth-quarter loss compared with a profit of $319 million a year earlier. The recent results were dragged down by $1 billion in one-time tax withholding expenses and lodging tax reserves.
The vacation-rental platform disclosed in December that it would pay Italy's tax agency
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