IPO in 2020
Estimated price for IPO – $169
Minimal purchase- $50 000
Potential profit- от 17,5%
About company
Airbnb is an online service for hosting, searching and short-term rental of private housing around the world.
The company was established in August 2008 in San Francisco. Founders: Brian Chesky, Joe Gebbia and Nathan Blecharzik. Today, Airbnb provides access to 7 million unique rental locations in more than 100,000 cities and 200 countries.
Main Investors
According to Crunchbase, since its inception, in total the company has raised $ 4.4 billion in investments from 54 investors. One of the investors was the DST Global fund of Russian entrepreneur Yuri Milner.
- The company entered into a partnership with the International Olympic Committee for a period up to 2028.
- The number of advertisements on Airbnb today exceeds the number of the five leading global hotel chains combined, i.e. Airbnb scores higher than industry ratings.
- Airbnb has signed over 400 agreements with the local and national governments and organizations around the world on the automated collection of tourism taxes. Globally, the platform has already collected more than $ 2 billion in tourist tax.
Development of the company
Airbnb acquired 21 organizations, including Urbandoor, HotelTonight, and gaest.com in 2019. The company also teamed up with RXR Realty and made strategic investments in one of the market leaders – Zeus Living and startup rental service Lyric.
Airbnb’s intellectual property includes 36 registered patents. On top of that, the company has registered 84 trademarks.
Financial performance
Airbnb has impressive growth rates, excellent financial performance in recent periods and is currently profitable, which is a positive factor in evaluating the company.
In 2018, revenue growth was 40% compared to the previous year.
According to the results of the 1st quarter of 2019, direct reservations through the platform amounted to $ 9.4 billion, which is 31% more than in the same period a year earlier.
A huge network advantage will allow the company to further increase its share of the fast-growing market.
Company evaluation
In the last round of fundraising, Airbnb was valued at $31 billion. * When the company acquired HotelTonight it sold its shares on a private market for the price of $35 billion. **
Derivatives that allow indirect transactions with Airbnb shares have recently been traded at $150 per share of Airbnb, issued as part of the share capital. This implies a premium of $11 billion to the valuation of the company.
The EV / EBITDA multiplier on average for other hotel companies suggests a premium of 14-18, we estimate this multiplier for Airbnb in the range of 25-30. Estimated capitalization at the time of IPO – from $ 50 billion.