Proptech Earnings Radar - Q2 2024 (Series V, Part V)

Q2 results are in for proptech’s public companies. We’re back at it, with high-level summaries of the ten companies we deem as the most important players in the broader category. We also included a table covering the top 28 companies in our wrap-up. The quarter featured record earnings, but many companies signaled an overall weaker economy and lowered future expectations. Oh, and Redfin’s CEO said that if interest rates don’t fall, their plan B is to hunker down, stay in the foxhole, and drink their own urine or their competitors’ blood to keep the company afloat… setting the tone for what could be a devastating Q3.

Without further ado, let’s get to it.

Note: All market cap figures are taken end of day, August 12th, 2024.

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COMPANY SNAPSHOTS

Airbnb’s earnings announcement had a positive topline report, but showed signs of margin contraction and warned of slower than normal demand in Q3. Both revenue and gross booking volume increased 11% YoY, coming in at $2.75B and $21.2B, respectively. Average daily rate increased 2% YoY to $170 across the 125.1M nights and experiences booked for the quarter, an increase of 9% YoY.

Market Cap: $73.93B

Notable Takeaways:

• Net income was $555M, decreasing 14.6% YoY from $650M in Q2 FY2023. Management attributes this decrease primarily due to a $100M increase in taxes “resulting from the release of a valuation allowance on certain deferred tax assets in 2023 and the utilization of some of those assets in 2024,” however, operating expenses increased 14.7% YoY, with product development and sales and marketing increasing the most on a percentage basis.
• Net income margin decreased 6% YoY to 20%.
• Q2 free cash flow increased 16% YoY to $1B, enabling the company to repurchase $749M worth of common stock during the quarter.
• Nights booked for groups over 5 people in North America increased 16% YoY (the fastest growth segment, Latin America increased 17% YoY, and a 19% increase YoY in the Asia Pacific region.
• Saw a 25% YoY growth in app downloads.
• Take rate (revenue/gbv) of 13% was flat YoY, but the introduction of an additional service fee for cross-currency billings, will increase the overall take rate by roughly 20 bps.
• Q3 guidance set between $3.67B and $3.73B in revenue representing 8%-10% YoY growth, with moderate average daily rate increases. However, demand from some North American guests is slowing and shorter booking lead times is expected.
• The Olympics have had an impact: More than 400,000 guests are expected to stay in Paris for the Olympics, with supply growth increasing over 37% YoY. Nights booked in Paris up to June 30th (nearly a month before the games began) have doubled YoY.

Learn More: Inman // PhocusWire // Shareholders Letter // Investor’s Business Daily // CNBC