Proptech Earnings Radar - Q3 2024 (Series V, Part VI)

Q3 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 27 companies in our wrap-up. Results were a mixed bag, with eleven of the 27 returning positive net income and Airbnb as the runaway success.Without further ado, let’s get to it.

Note: All market cap figures are taken end of day, November 19th, 2024.

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COMPANY SNAPSHOTS

Hit the top-end of their guidance revenue, Airbnb generated $3.732B off $20.1B in gross bookings, both 10% YoY increases. Net income dropped 68.7% YoY, decreasing by $3.006 billion to $1.368 billion this quarter, impacted by a $3.062 billion YoY increase in taxes. Average daily rate increased 1% YoY to $163.64 across the 122.8M nights and experiences booked for the quarter, an increase of 8% YoY.

Market Cap: $83.58B

Notable Takeaways:

• Adjusted EBITDA was $2B, an increase of 7% YoY, while adjusted EBITDA margin fell 2% on a YoY basis to 52%.
• Take rate (revenue/gbv) of 18.6% was flat YoY.
• Repurchased $1.1B Class A common stock, with total trailing twelve month share repurchases totaling $3.3B.
• Nights booked with Superhosts increased by 21% YoY. Host cancellation rates decreased roughly 30% YoY.
• ❇️Launched Co-Hosts Network❇️ a tool to help Airbnb hosts manage listings, guest communications, and maintenance, with 10,000 co-hosts at launch and 20,000 more interested within the first three weeks.
• Q4 revenue guidance is set between $2.39B and $3.44B, representing 2% YoY growth, significantly lower than the forecasted Q4 FY23 growth rate of 12-14%.
• Stopped reporting supply growth changes in its earnings letters as it begins removing low-quality listings. Over the past year, more than 300,000 properties have been removed to improve overall quality and reduce customer service costs. In the Q&A, CFO Ellie Mertz noted that supply growth increased by roughly 10%, outpacing demand growth, although total supply growth decreased slightly YoY.
• Brian Chesky highlighted the contrasting approaches of Paris and New York toward Airbnb. For the 2024 Olympics, Paris welcomed Airbnb, boosting listings by 50%, an additional 50,000 properties, in preparation for the event. Meanwhile, New York banned Airbnb in September 2023, in response to the housing affordability crisis. This ban provided a one-year case study on economic impacts: rents increased by 3.5%, and hotel prices rose by 7%.

Learn More: Inman // PhocusWire // Shareholders Letter  // CNBC // Earnings Transcript

Blend Labs’ saw revenue increase 11.3% YoY to $45.184M. For the first time in company history, the company achieved Non-GAAP operating profitability this quarter, with a profit of $40K, compared to a $15.9M Non-GAAP loss last year. For the third straight quarter, GAAP net loss decreased, this quarter by $22.9M, from $36.2M in Q3 FY23 to $13.3M. Economic value per funded loan reached a new high of $99 for Q3, beating the $97 per loan economic value generated in Q2.

Market Cap: $1.16B

Notable Takeaways: