In a turn of fortune, Airbnb today revealed that it has actually submitted to go public,
albeit in complete confidence. The relocation puts the home-sharing service on a course to a public offering faster instead of later, and follows reports that the business was prepping an IPO filing this month. Those exact same reports showed that Airbnb might go public as soon as the end of the year. A Q3 or Q4 Airbnb offering is therefore a distinct possibility.
Airbnb has mounted a comeback given that COVID-19-related shutdowns knocked the travel market, tanking its profits at the exact same time. Airbnb laid off nearly 2,000 workers, and took on pricey capital from external sources. The company guaranteed in 2019 that it would go public in 2020, however that pledge appeared far-off in the middle of the year. Since then, Airbnb has actually made noise about various parts of its business coming back to life, although altered by brand-new travel and work and getaway patterns from its users. If Airbnb has actually submitted, we can presume that present outcomes suffice to get it life, else the
company would have not submitted and would have just gone public later. The question now becomes if its Q2 numbers sufficed to get it out the door, or if the business means to upgrade its S-1 filing with Q3 numbers, press the filing live and go public with more recovery time in its outcomes. Obviously, such a course of action would put its public launching perilously near to the American election. And, Airbnb’s Q2 numbers are down not just from Q1 in earnings terms, but even more dramatically from its year-ago results for the same calendar period. In other words, Airbnb’s growth story may not be clear tillQ3 numbers are tallied, a month and a half from now. Airbnb joins other business that have submitted independently like DoorDash in waiting by the wings for the right moment to go public, or the right set of results. We’ll see, but the company’s public launching is back to being approaching.
Now the concern ends up being whether Airbnb intends to go public in an IPO, as the wording of its filing appears to suggest, or if a direct listing might still remain in the cards. We believe it’s more likely theprevious and not the latter, but, hey, in 2020 you never understand. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.