Operating Profit Margin
since 2020
Calculation
Airbnb Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 23.00% | = | 100 | × | 2,553) | ÷ | 11,102) |
| Dec 31, 2023 | 15.31% | = | 100 | × | 1,518) | ÷ | 9,917) |
| Dec 31, 2022 | 21.45% | = | 100 | × | 1,802) | ÷ | 8,399) |
| Dec 31, 2021 | 7.17% | = | 100 | × | 429) | ÷ | 5,992) |
| Dec 31, 2020 | -106.27% | = | 100 | × | (3,590) | ÷ | 3,378) |
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).
1 US$ in millions
The company experienced significant volatility in its operating performance between 2020 and 2024. Initially, operations resulted in a substantial loss, but profitability improved markedly over the subsequent years, culminating in a strong operating profit margin by the end of the period.
- Operating Profit Margin
- In 2020, the operating profit margin was significantly negative, registering at -106.27%. This indicates substantial operational losses relative to revenue. A dramatic improvement occurred in 2021, with the operating profit margin rising to 7.17%, signaling a return to profitability. The margin continued to increase in 2022, reaching 21.45%, demonstrating strong operational efficiency. A slight decrease was observed in 2023, with the margin settling at 15.31%. However, the trend reversed in 2024, with the operating profit margin increasing to 23.00%, representing the highest level observed during the analyzed period.
The income from operations reflects the trend observed in the operating profit margin. A large loss of US$3,590 million in 2020 was followed by positive income in subsequent years, growing from US$429 million in 2021 to US$2,553 million in 2024. This growth in operational income aligns with the increasing operating profit margin.
- Revenue Growth and Operating Income
- Revenue exhibited consistent growth throughout the period, increasing from US$3,378 million in 2020 to US$11,102 million in 2024. The growth in revenue appears to be a key driver of the improvement in operating income. While the operating profit margin fluctuated, the increasing revenue base amplified the impact of margin improvements on overall profitability.
The company demonstrated a strong ability to recover from initial losses and achieve substantial profitability. The increasing operating profit margin, coupled with consistent revenue growth, suggests improving operational efficiency and a strengthening market position.
Comparison to Competitors
Airbnb Inc., operating profit margin, long-term trends, comparison to competitors
| Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | 23.00% | 31.83% | 16.94% | -0.35% | 45.19% | 14.95% |
| Dec 31, 2023 | 15.31% | 27.31% | 15.78% | -6.71% | 45.68% | 16.32% |
| Dec 31, 2022 | 21.45% | 29.85% | 13.44% | -17.07% | 40.42% | 14.32% |
| Dec 31, 2021 | 7.17% | 22.78% | 10.67% | -9.25% | 44.59% | 16.77% |
| Dec 31, 2020 | -106.27% | -9.28% | 4.85% | -15.11% | 38.13% | 6.64% |
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).