Airbnb Inc (ABNB)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,331,000 | 2,326,000 | 2,270,000 | 2,265,000 | 2,102,000 | 2,829,000 | 2,420,000 | 2,127,000 | 1,989,000 | 1,717,428 | 1,297,886 | 857,902 | -299,998 |
| Revenue (ttm) | US$ in thousands | 11,102,000 | 10,791,000 | 10,456,000 | 10,192,000 | 9,885,000 | 9,638,930 | 9,126,340 | 8,746,450 | 8,405,530 | 7,998,080 | 7,352,000 | 6,583,090 | 5,593,549 |
| Pretax margin | 30.00% | 21.55% | 21.71% | 22.22% | 21.26% | 29.35% | 26.52% | 24.32% | 23.66% | 21.47% | 17.65% | 13.03% | -5.36% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,331,000K ÷ $11,102,000K
= 30.00%
The pretax margin of Airbnb Inc has shown variability over the period from December 31, 2021, to December 31, 2024. The pretax margin was negative at -5.36% as of December 31, 2021, indicating that the company's expenses exceeded its earnings before taxes. However, there was a notable improvement in the pretax margin throughout the subsequent periods. Specifically, the pretax margin increased steadily from 13.03% as of March 31, 2022, to a peak of 30.00% as of December 31, 2024.
This upward trend in the pretax margin suggests that Airbnb Inc was able to effectively control its expenses relative to its operating income over time, resulting in a higher profitability level on a pre-tax basis. The company experienced significant growth in profitability between September 30, 2023, and December 31, 2024, achieving the highest pretax margin of 30.00% at the end of 2024.
It is important to note the fluctuations in the pretax margin during some periods, such as the decrease from 29.35% as of September 30, 2023, to 21.26% as of December 31, 2023. These fluctuations may have been influenced by various factors impacting the company's revenue and expenses during those specific periods.
Overall, the increasing trend in the pretax margin demonstrates Airbnb Inc's ability to enhance its profitability and efficiency in managing its operational costs, leading to improved financial performance during the analyzed period.
Peer comparison
Dec 31, 2024