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IPO Airbnb

Vacation rental platform
IPO
Medium risk

Revenues in 2017-2019

Invest in IPO Airbnb

This investment idea is no longer available. New applications are not accepted

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Investment Idea Details
The Company

Airbnb operates a global platform for unique stays and experiences. The company’s marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences around the world. Airbnb was founded in 2008 in San Francisco, California.

More than 4 million hosts now offer everything from a private room in their home to luxury villas, from one night to several months at a time. In more than 220 countries and regions around the world, Airbnb hosts have welcomed over 825 million guest arrivals and have cumulatively earned over $110 billion.

Airbnb has enabled home sharing at a global scale and created a new category of travel. Instead of traveling like tourists and feeling like outsiders, guests on Airbnb can stay in neighborhoods where people live, have authentic experiences, live like locals, and spend time with locals in approximately 100,000 cities around the world.

Market Opportunity

In early 2020, as COVID-19 disrupted travel across the world, Airbnb’s business declined significantly. But within two months, Airbnb's business model started to rebound even with limited international travel, demonstrating its resilience. People wanted to get out of their homes and yearned to travel, but they did not want to go far or to be in crowded hotel lobbies. Domestic travel quickly rebounded on Airbnb around the world as millions of guests took trips closer to home. Stays of longer than a few days started increasing as work-from-home became work-from-any-home on Airbnb.

Airbnb has a substantial market opportunity in the growing travel market and experience economy. The company estimates its total addressable market to be $3.4 trillion, including $1.8 trillion for short-term stays, $210 billion for long-term stays, and $1.4 trillion for experiences. Airbnb is still early in the global shift in consumer preferences toward one-of-a-kind stays and experiences, which provides an opportunity to further grow the community and business.

Risks

The COVID-19 pandemic and the impact of actions to mitigate the COVID-19 pandemic have materially adversely impacted and will continue to materially adversely impact Airbnb business, results of operations, and financial condition. This can negatively impact shareholder value.

Airbnb has incurred net losses in each year since inception, and may not be able to achieve profitability. Adjusted EBITDA and Free Cash Flow have been declining, and this trend could continue.

Revenue growth rate has slowed, and Airbnb expects it to continue to slow in the future. This may negatively impact share price.

Financials

Airbnb (ABNB) booked $3,6B in revenue for the last 12 months. Gross margin is around 74%. In 2019, Airbnb generated revenue of $4.8 billion, representing growth of 32% from $3.7 billion in 2018. During the nine months ended September 30, 2020, Airbnb’s business was materially impacted by the global COVID-19 pandemic, with revenue of $2.5 billion, which is down 32% year over year.

Airbnb generated $1.0 billion of net cash provided by operating activities and incurred $507.0 million of purchases of property and equipment cumulatively from 2011 through 2019, resulting in cumulative positive Free Cash Flow of $520.1 million during the same period.

Similar public company is Booking.com (BKNG), which is trading at 9.3x sales with revenue decline of 48% in the last quarter YoY. The expected market capitalization of Airbnb after the IPO is $60B.

How IPO Investments Work
1. Collection of funds

2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

Publication
26 Nov
Threshold amount
$100
2. Buy shares

We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

Submit applications before
08 Dec
3. Start Bidding

The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

Start Bidding
10 Dec
Return forecast
Medium (up to 40%)
4. Receiving profit

After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

End
15 Mar
Early profit fixation

Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

Fee

FOR ENTRY

3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

FOR EXIT

1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

SUCCESS

20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

TO EARLY EXIT

Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

Advantages Enjoyed by Those Investing with United Traders

RELIABILITY

Our risk managers ensure proper support throughout the entire transaction.

IN THE PROFIT FROM THE FIRST DAY

Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

LOW ENTRY THRESHOLD

Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

Invest in IPO Airbnb

This investment idea is no longer available. New applications are not accepted

View more ideas