Airbnb Inc (ABNB)

Q4 Margin Outlook
Q: Why is Q4 EBITDA margin lower, and what's next year's investment plan?
A: The Q4 guidance implies an EBITDA margin of about 27%, down several points from last year due to increased investments in product development and marketing. - For 2025, we'll continue to invest in growth initiatives like core optimizations, global market expansions, and new products. - While our core business becomes more efficient, we'll invest in greater service levels and launch new offerings with our spring release. -

Supply Growth and Quality
Q: How are supply growth and quality initiatives impacting the business?
A: Our supply continues to grow strongly, with over 10% year-over-year increase in Q3, although down several points due to removals. - - We're focused on raising the quality bar by introducing Guest Favorites and removing over 300,000 listings that didn't meet expectations. - - These initiatives have led to higher ratings, lower incident rates, and fewer customer service contacts. -

Long-Term Growth Algorithm
Q: What's the long-term growth plan for the core business and new verticals?
A: We're focusing on core optimizations, global market expansions, and launching new products and services to drive long-term growth. - Our core business could get to 1 billion nights a year by improving quality, affordability, and usability. - We'll also expand into new areas beyond travel, launching one to two new businesses each year that could generate over $1 billion in revenue. - -

Attracting Next Billion Guests
Q: What investments will attract the next billion guests?
A: We'll invest in enhancing our core business by increasing quality, affordability, and usability. - Expanding into global markets like Mexico, Brazil, Germany, Italy, Spain, Korea, Japan, India, and China presents huge opportunities. - We'll also expand beyond accommodations into new products and services, aiming to launch one to two new businesses annually. -

Expansion Markets
Q: Which are the key expansion markets, and what's their growth impact?
A: Our core markets represent about 75% of gross booking value. - Expansion markets like Brazil and Japan are significant opportunities. - In Brazil, our initiatives tripled destination nights compared to pre-pandemic levels. - We'll continue to scale these markets, which currently account for about 15% of the remainder, to contribute more significantly to global growth. -

Affordability and Quality Initiatives
Q: How are affordability and quality initiatives driving bookings?
A: We've implemented total price display, leading to over 300,000 listings reducing or removing cleaning fees. - Introduced discounts, with two-thirds of hosts offering them. - We've highlighted 2 million Guest Favorites listings, leading to 200 million nights booked. - Removed over 300,000 listings not meeting quality standards. - These efforts have kept Airbnb prices stable while hotel prices have risen. -

New Services Revenue Impact
Q: Will new services drive revenue growth next year?
A: We'll be aggressive in launching new offerings in over 100 cities. - There will be some incremental revenue next year, but we see these as multi-year journeys with a five-year horizon to reach scale. - Investments will precede revenue, with expenses appearing at the beginning of the year. -

Experiences Offering
Q: What's the plan for expanding and scaling the Experiences offering?
A: We can offer something unique and scalable without significant capital investment. - We'll position Experiences first to travelers but also for locals, increasing engagement and frequency of use. - Investments in technology are mostly already made, and we'll market all offerings under one brand. - -

Regulatory Challenges and Hotels
Q: How are regulatory challenges like NYC impacting strategy, and will you lean into hotels?
A: In cities with strict regulations like New York City, we're focused on working with authorities to find solutions. - We've seen positive outcomes in Paris, where Airbnb helped accommodate 700,000 guests during the Olympics. - We're optimistic about a path forward in NYC and are adding more hotels to Airbnb, as hotels don't have to lose for Airbnb to win. -