Proptech Earnings Radar Pt. 1 - Q4 2024 (Series V, Part VII)

Q4 results are in for many of proptech’s public companies.

This quarter, the Proptech Earnings Radar is being split in two. In Part 1, we share the earnings summaries for the ten companies we deem as the most important players in the broader category. Part 2 will be the wrap-up that includes a table covering the performance of the 29 companies in the GEM Proptech Index once all companies have released their earnings.

Without further ado, let’s get to it...

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COMPANY SNAPSHOTS

Exceeding revenue guidance, Airbnb generated $2.5B off $17.6B in gross bookings, a 12% and 13% YoY increase, respectively. Average daily rate increased 1% YoY to $158 across the 111M nights and experiences booked for the quarter, an increase of 12% YoY. 

Notable Takeaways:

• Ended Q4 2024 with more than 5M hosts, flat YoY and over 8M active listings, a 3.9% YoY increase.
• Reported $461M in net income for Q4 2024, compared to a $349M net loss in Q4 2023, which isn’t directly comparable due to $1B in one-time tax expenses and other one-off expenses that were incurred in Q4 FY23.
• Adjusted EBITDA was $765M, an increase of 4% YoY, while adjusted EBITDA margin fell 2% on a YoY basis from 33% to 31%.
• Take rate (revenue/gbv) of 14.1% decreased from 14.3% this quarter last year due to one-time benefits recognized from unused gift cards applied in FY23.
• ADR increased 3% and 6% YoY in North America and EMA, respectively while decreasing 5% in LATAM, primarily due to foreign exchange impact.
• Repurchased $838M Class A common stock, with complete FY24 share repurchases totaling $3.4B.
• ❇️The co-host network❇️ has grown to 15,000 members managing 100,000 listings, up from 10,000 co-hosts at the start of the quarter. At launch, the company reported that 20,000 people had expressed interest in joining.
• Notably, no specific figures were shared on booking rates or the growth of Superhosts and long-term stays, both previously reported metrics and focus areas. However, Chesky did mention that about 75% of co-hosts come from the Superhost network.
• Q1 revenue guidance is projected between $2.23B and $2.27B, reflecting a YoY growth of 4-6%. This marks a significant decline from the anticipated Q1 FY24 growth rate of 12-14%. However, compared to the 2% YoY growth projected in Q3 for Q4 FY24, this represents an improvement.
• Announced a $200M–$250M investment in product development and advertising to expand its marketplace beyond just housing and experiences. More details will be revealed in the company's spring product release. CEO Brian Chesky stated in the earnings transcript, “People typically use Airbnb once or twice a year, and I would love for it to become something they use once or twice a week.”

Learn More: Shareholders Letter // Inman // PhocusWire // Investors Business Daily // Investopedia // Earnings Transcript

Zillow’s Q4 revenue came in at $554M, a 17%YoY increase, surpassing the midpoint of guidance expectations by $21M. GAAP net loss was $52M (9% margin) in Q4 2024, down from $73M (15% margin) in Q4 2023. Traffic was 204M average monthly unique users, up 3% YoY, while visits increased 3% YoY to 2.1B. ❇️Announced a partnership with Redfin❇️ to feature all multifamily properties from Redfin and its subsidiaries on the Zillow platform, furthering Zillow's position as the go-to source for apartments alongside its existing partnership with Realtor.com.

Notable Takeaways: