Airbnb brings in billions of dollars of revenue annually and is a profitable business that’s helping many home-owners make a side income or full-time income from the home-sharing company. If you are one of the many stakeholders of the company are wondering if and when Airbnb goes public, we will help break down the information today. At the code conference, March 2018, Chesky said the company will be ready to IPO in 2019 but not sure if the company will. Even the executives and the investors of Airbnb are at odds whether the company should ever be going public at all.
While the company is not sure it will go public or not, if Airbnb does go public, it has a date in mind. It is speculated that by June 30, 2019, the company will go public, so you might want to keep a watch at whats happening around this time. If the company goes public in 2019 and becomes a listed company on the stock exchange, the public will be able to buy shares, and in return, Airbnb will get capital to run the business. It will help boost the company’s already profitable revenue figures.
Public By June 30, 2019
Airbnb now has 4000 employees in offices around the world and is on track to make $3.5 billion to $4 billion in revenue this year. So going public will directly affect the equity stockholders of the company. Listing the company by 2020 will prevent any employee’s equity grant from expiring. The company will also be paying cash bonuses to staff in 2018 and 2019, for the first time. Employees are set for more compensation in future for their much earned hard work. It’s an exciting time for the staff who have been working with the company from the early days, as they would have equity shares in the company and going public will make them wealthier.
Right now, Airbnb is indeed playing a smart game by keeping it’s existing employees happy and more earnings coming on their plate shortly. At the same time, the company can attract top new talents into their space without having to spend much time in human resource management.
It goes without saying, “a company is only as strong as the team behind it.”
Last but not the least, the company is still searching for a new chief marketing officer and new chief financial officer.
What does it mean for stakeholders?
Airbnb help connects travelers around the world with homeowners who are willing to share their unique space for a price per night. The traveler gets to experience his stay as a local, and the credit goes to the host for making the trip unique in its own way. Airbnb gets to keep 3% of the total earnings of the host for facilitating the transaction, and it covers the cost of processing payments.
While Airbnb is struggling mainly in San Franciso and New York from a regulatory standpoint, the company doesn’t want to leave these cities because many hosts come to rely on Airbnb to earn their income. It shows the company cares for its stakeholders and sticking with Airbnb will pay back in the long run.
What does it mean for travelers?
As the company continues to grow so does its products and services. Airbnb’s experiences product is growing 10x faster than its homes product. Airbnb experiences launched in 2016 which helps travelers find things to do in cities throughout the world. With the experience economy growing there are much more exciting adventures for travelers to explore. As the company hits the IPO, travelers can expect more unique spaces to explore and experiences to do.
When Brain Chesky, Joe Gebbia, and Nathan Blecharczyk started Air bed and breakfast, they faced numerous challenges from seed investment to expansion problems and to even investors in the silicon valley doubting their business model altogether. Founders wokred hard in the face of criticism and struggle to reach where they are today.
Chesky wants to make sure it’s a significant benefit to the company when Airbnb does go public and hence do not want to jump into things. He is in no hurry, just waiting for the perfect time. Moreover, why not, after all, Airbnb is estimated to worth at least $38 billion now, making it one of the top ten valuable companies in the world.