Home Business Airbnb Files For Confidential IPO With SEC

Airbnb Files For Confidential IPO With SEC

With pandemic, Airbnb witnessed a massive decline in bookings and revenues and carried out painful cost-cutting measures. However, as the company emerges from the effects, it has filed an IPO with SEC as planned earlier in March.

Before the COVID-19 outbreak, the San Francisco-based startup Airbnb was on its flight to success. Going into 2020, Airbnb was a behemoth in online travel with around 13,000 employees and 31 offices around the world. Like many others in the industry, Airbnb suffered a significant blow during the pandemic as travel came to a halt in many parts of the world. Its valuation reportedly dropped from $31 billion to $18 billion a month later. It laid off almost 1,900 employees, or nearly 25% of its workforce, in May. However, as the company emerges from the effects of the coronavirus pandemic, it has filed to go public in a long-awaited listing.

On Wednesday, the company confidentially submitted its filing for an initial public offering (IPO) to the U.S. Securities and Exchange Commission. The company has not decided anything on the price range and size of the offering.

Airbnb remains one of the most highly anticipated stock listings of the year. CEO Brian Chesky originally intended to initiate the listing process with the SEC on March 31. It was before Covid-19 closed borders, grounded flights to a halt, and left the company with more than $1 billion in cancellations. With the markets in turmoil, plans were put on hold.

WireX August Download

Airbnb’s revenue fell to $335 million in the second quarter. It was down at least 67 percent from more than $1 billion the company reported in the same period last year. The company also recorded a loss before interest, taxes, depreciation, and amortization of $400 million for the three months that ended in June. The shift reveals the magnitude of the impact of the pandemic on global travel.

“We are collectively living through the most harrowing crisis of our lifetime,” Airbnb co-founder and chief executive Brian Chesky said.

However, a comeback for travel after the pandemic hit the peek was faster than expected. The company began to notice signs of recovery in June. The booking rate was only down to 30 percent when compared to the previous year. While for May, the decline was 70 percent. Additionally, on July 8, guests booked more than 1 million nights of future stays at Airbnb properties. It is the first time the company has hit that threshold since March 3.

WireX August Download

Shivani Mittalhttps://www.the-electronics.com/
Shivani Mittal pens down all the prominent business decisions and news. She is a passionate reader and on any other off day, she finds herself immersed in adventurous activities like Trekking and Rock climbing.


Please enter your comment!
Please enter your name here

Most Popular

OnePlus 8T Cyberpunk 2077 edition to launch on November 2

OnePlus 8T’s Cyberpunk 2077 limited edition smartphone is all set to launch on November 2, 2020 at 11:30 am IST. OnePlus co-founder Pete Lau...

US hospitals fall victims to ransomware attacks amid rise in Covid cases

Some US hospitals have been hit by simultaneous ransomwareattacks, structured to cause harm to healthcare systems. These attacks were carried out by cyberattackers in...

Viral copy-paste app ClipDrop now available for $39.99

Back in May, the world got to know about an exciting research project (ClipDrop) testing out the concept of using AR (Augmented Reality) to...

Vu launches 85-inch Masterpiece TV for ₹3.5 lakh

Vu has launched its latest flagship — Vu Masterpiece 85-inch TV — for Rs 3.5 lakh. The smart television features QLED technology and a...

Recent Comments