Airbnb Reports Strong Q4 Growth, Stock Climbs

By Patricia Miller

Feb 14, 2025

2 min read

Airbnb reports impressive Q4 growth, boosting investor confidence, while co-founder Joe Gebbia's new government role highlights evolving tech and policy dynamics.

Modern Minimalist Bedroom Interior with City View

#What You Need To Know

Airbnb Inc (NASDAQ: ABNB) recently released its financial results for the fourth quarter and entire year of 2024, reflecting significant growth. The company reported revenue of $2.5 billion for Q4, up 12% from the previous year, driven by increased nights booked and a slight rise in Average Daily Rate. Net income rose sharply to $461 million in Q4 2024, recovering from a loss of $349 million in the same quarter last year, mainly due to previous non-recurring tax expenses. In addition, Adjusted EBITDA showed a 4% increase, signaling effective cost management despite a decrease in margin. The firm achieved a free cash flow of $458 million for Q4, contributing to a total of $4.5 billion for the year. Furthermore, Airbnb utilized strong cash flow to buy back $838 million in stock during Q4, enhancing shareholder value.

In related news, co-founder Joe Gebbia is joining a government efficiency team led by Elon Musk, marking a political shift from his previous Democratic support to favoring Republicans, influenced by his connections with Musk and political figure Robert F. Kennedy Jr. Gebbia, with a net worth around $9 billion from Airbnb stock, remains influential through his board membership and other investments, including the NBA's San Antonio Spurs.

Sign up for Investing Intel Newsletter

Get the latest news and updates from our team.

I agree to the privacy policy.

#Why This Is Important for Retail Investors

  1. Strong Financials: Q4 revenue grew 12% to $2.5B, with $461M net income and $4.5B free cash flow for 2024.

  2. Stock Buybacks: Airbnb repurchased $838M in shares, boosting shareholder value.

  3. Political Influence: Co-founder Joe Gebbia joins Musk’s government team, potentially shaping policy.

  4. Growth Potential: Increased bookings and pricing power support long-term expansion.

#Relevant ETFs

Some investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. Some relevant ETFs include the following:

  • Invesco QQQ Trust

  • iShares Russell 1000 Growth ETF

  • ARK Innovation ETF

  • SPDR S&P 500 ETF Trust

  • Vanguard Total Stock Market ETF

  • Schwab U.S. Broad Market ETF

Stock Market Trends 2024

Related Articles:

Explore more on these topics:

Travel Media and Entertainment Stocks Quarterly Earnings Consumer Discretionary Information Technology

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.