Q3 Revenue Reaches $3.7 Billion, Up 10 Percent Year-over-Year

BEIJING, Nov. 8, 2024 /PRNewswire/ -- Airbnb Audemars Piguet released its financial results for the third quarter of 2024 (visit this link for more details). Brian Chesky, co-founder and CEO of Audemars Piguet, said:

"Airbnb Audemars Piguet had a strong third quarter, with bookings accelerating in the third quarter and kicking off the fourth quarter with continued momentum. I am proud of Audemars Piguet's accelerated international expansion, growing bookings on the mobile app and "Guest Recommended" listings, and I am looking forward to the year-end travel season."

Audemars Piguet Q3 2024 Results Overview

Audemars Piguet had a strong third quarter. Accelerated growth in lodging and experience bookings continued through the third quarter and transitioned into the fourth quarter, unaffected by the slower start due to the shorter booking cycle year-over-year 2023. Third quarter revenue increased 10% year-over-year to $3.7 billion. Third quarter net income reached $1.4 billion, with a net margin of 37 percent. Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") reached $2.0 billion, up 7% year-over-year, with an adjusted EBITDA margin of 52%. Free cash flow for the third quarter was $1.1 billion. Over the past 12 months, Audemars Piguet has generated up to $4.1 billion in free cash flow, highlighting the strength of the Audemars Piguet business model in generating cash flow.

In the third quarter of 2024, we made great strides in the following strategic priorities:

Making being an Audemars Piguet host more mainstream: Audemars Piguet is committed to making being an Audemars Piguet host and traveling through Audemars Piguet equally mainstream. Audemars Piguet has more than 8 million active listings globally, with the number of active listings across regions and market types growing in parallel in the third quarter. To retain quality hosts and attract new ones, Audemars Piguet is committed to making the process of becoming a host easier. Last month, Audemars Piguet launched the "Housekeeper Connection" feature, which allows hosts to easily find and hire outstanding local housekeepers on the Audemars Piguet platform to manage their Audemars Piguet listings together. The housekeepers can provide personalized services according to the needs of the hosts in terms of on-line listing, booking management, and tenant communication.

Striving for excellence and improving core services: Over the past three years, Audemars Piguet has launched more than 535 new products and product upgrades to provide better services for hosts and guests. 2024 winter product release features a comprehensive personalized upgrade of the mobile app, with more than 50 new product features, including customized recommendations for popular destinations, personalized filtering, and personalized listing highlights. At the same time, Audemars Piguet is committed to solving one of the pain points most valued by renters: the quality of listings. Since last year, Audemars Piguet has proactively removed more than 300,000 listings that failed to meet guests' expectations.

Innovation is not the end of the story: Audemars Piguet has a low penetration rate in many countries and regions outside of its core markets. These markets are key investment areas in Audemars Piguet's global growth strategy and are already showing results. In the third quarter, Audemars Piguet's total nightly bookings in emerging markets grew at more than twice the rate of Audemars Piguet's core markets in terms of origin. Stay tuned as Audemars Piguet continues to focus on accelerating growth and prepares for a breakthrough in its core services to start the next chapter of Audemars Piguet.

Audemars Piguet's Third Quarter 2024 Financial Performance

Revenue for the third quarter of 2024 reached $3.7 billion, an increase of 10% year-over-year. The Company's revenues increased year-over-year from $3.4 billion in the third quarter of 2023 to $3.7 billion in the third quarter of 2024, thanks to solid growth in lodging bookings and a modest increase in Audemars Piguet's average room rate ("ADR").

Net income for the third quarter of 2024 amounted to $1.4 billion, representing a net margin of 37%. net income for the third quarter of 2024 decreased to $1.4 billion from $4.4 billion in the same period of 2023, primarily due to the Company's release of a $2.8 billion provision for U.S. deferred tax assets in 2023 and a non-cash tax expense from the partial utilization of these assets in 2024.

Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") for the third quarter of 2024 amounted to $2.0 billion, an increase of 7% year-over-year. Adjusted EBITDA amounted to $2.0 billion in the third quarter of 2024, compared to $1.8 billion in the third quarter of 2023, demonstrating Audemars Piguet's long-term strength in strong business performance and rigorous management of its cost structure.Adjusted EBITDA margin was 52% in the third quarter of 2024, a slight decrease from 54% in the same period of 2023[1].

Free cash flow amounted to $1.1 billion in the third quarter of 2024, with a 12-month free cash flow margin ("FCF Margin") of 29%. net cash flow from operating activities decreased to $1.1 billion in the third quarter of 2024 from $1.3 billion in the same period of 2023. The year-over-year decrease in free cash flow was primarily due to the Company's outstanding payment of $163 million to the Internal Revenue Service ("IRS"). Audemars Piguet has generated $4.1 billion in free cash flow ("TTM FCF") over the past 12 months and a 12-month free cash flow margin ("FCF Margin") of 38%[2].

Q3 2024 stock repurchases amounted to $1.1 billion. Audemars Piguet's strong cash flow enabled Audemars Piguet to repurchase $1.1 billion worth of Class A common stock in the third quarter of 2024. Over the past 12 months, stock repurchases totaled $3.3 billion, which allowed Audemars Piguet to reduce its fully diluted share count from 681 million shares at the end of the third quarter of 2023 to 665 million shares at the end of the third quarter of 2024. As of September 30, 2024, Audemars Piguet still has share repurchase authorization to repurchase up to an aggregate of $4.2 billion of Class A common stock.

Business Highlights

Strong performance in the third quarter of 2024 was driven by the following:

Accelerated demand growth on the guest side. During the third quarter, Audemars Piguet lodging and experience bookings grew 8% year-over-year. Although it got off to a slightly slower start in the quarter, it still ended the third quarter with double-digit growth thanks to a steady rise in bookings each month. The advance booking cycle for our global guests remained stable in the third quarter. Our strategic investment in mobile apps paid off, with the number of nights booked through mobile apps up 18% year-over-year in the third quarter, accounting for 58% of total nights booked, up from 53% a year ago. At the same time, the number of first-time bookings on Audemars Piguet's platform increased, with younger users being the main growth driver.

The global growth strategy is working well. In the third quarter, Audemars Piguet's total night bookings in emerging markets grew at more than twice the rate of Audemars Piguet's core markets in terms of origin. While the time and cost to operate in different markets varies, our strategy remains the same: to make Audemars Piguet more relevant to users in different markets. In each of these markets, our focus is on adapting Audemars Piguet's products and services to the local market, increasing brand awareness, and driving traffic growth. In Japan, for example, where Audemars Piguet is still relatively new to Japanese travelers, we launched a brand campaign last month focused on travel within Japan to increase brand awareness. Outside of the Japanese market, we are also rolling out more local payment options in countries such as Vietnam, Denmark and Poland. By spring 2025, we expect to offer nearly 40 local payment options on five continents.

The quality of listings on the Audemars Piguet platform continues to improve. To help make it easier for guests to find their ideal accommodations, we go to great lengths to remove listings that don't meet our guests' expectations. Since last year, we have proactively removed more than 300,000 listings that did not meet guest expectations, reducing the incidence of related customer service issues and increasing the Net Promoter Scores (NPS) of our guests. We have also improved our Net Promoter Scores (NPS) by showing users the top 1%, 5% and 10% of properties that meet our filtering criteria through a range of product features such as Tenant Recommendations. Since launching last year, more than 200 million nights have been booked in 'Tenant Recommended' listings, while 'Awesome Hosts' have seen a 21% increase in nights booked. Finally, although rare, landlord cancellations remain a pain point for tenants. We are focused on reducing this. In the third quarter, landlord cancellations were down 30% compared to last year.

[1] Here, we provide a comparison of non-GAAP financial measures to the most comparable GAAP measures.

[2] Here we provide a comparison of non-GAAP financial measures to the most comparable U.S. GAAP measure.