Common-Size Income Statement
Airbnb Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Revenue and Profitability Trends
- The company maintained steady revenue throughout the periods, consistently accounting for 100% of revenue. The cost of revenue decreased significantly from -25.93% in 2020 to -16.92% in 2024, indicating improved efficiency in generating gross profit. Correspondingly, gross profit as a percentage of revenue showed a consistent upward trend, rising from 74.07% in 2020 to 83.08% in 2024, reflecting stronger profitability at the gross margin level.
- Operating Expenses
- Operations and support expenses declined sharply from -25.99% in 2020 to -11.55% in 2024, indicating better cost control or operational leverage. Product development expenses showed a remarkable reduction from an extremely high -81.49% in 2020 to a more sustainable range around -17% to -19% in subsequent years, suggesting normalization or more focused investment in product initiatives. Sales and marketing expenses decreased initially from -34.79% to -17.78% by 2023 but saw a slight increase to -19.35% in 2024, which may point to renewed emphasis on customer acquisition efforts. General and administrative expenses displayed volatility, with an initial drop from -33.59% to -11.31% by 2022, then a spike to -20.42% in 2023 before improving to -10.67% in 2024, indicating fluctuations in overhead costs.
- Operating Income and Other Income Effects
- Income (loss) from operations transitioned from a substantial loss of -106.27% in 2020 to positive operating income in subsequent years, reaching 23% in 2024. This reflects a significant turnaround in operational profitability. Interest income remained relatively low but increased notably from 0.8% in 2020 to around 7.3% in 2023 and 2024, indicating possibly higher returns on invested assets or cash holdings. Interest expense decreased substantially, dropping from -5.08% to -0.22% by 2024, suggesting reduced borrowing costs or lower debt levels. Other income (expense), net, improved from a large negative impact of -28.04% in 2020 to a near-neutral effect in recent years, enhancing overall earnings stability.
- Pretax Income and Tax Provisions
- Income (loss) before income taxes showed a dramatic improvement from a large loss of -138.59% in 2020 to positive pretax earnings around 21% to 30% in 2023 and 2024, indicating sustained profitability growth. The provision for income taxes varied greatly, showing a small positive benefit in 2020, negative impacts from 2021 to 2022, a significant tax benefit in 2023 at 27.13%, and a tax cost of -6.15% in 2024, reflecting changing tax circumstances or discrete tax items.
- Net Income
- Net income followed the positive trajectory seen in operating and pretax income, swinging from a large negative percentage of -135.71% in 2020 to strong positive gains between 22.54% in 2022 and peaking at 48.32% of revenue in 2023, before moderating to 23.85% in 2024. This demonstrates a successful recovery from initial losses to a robust net profitability position, albeit with some variability in the most recent year.