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Despite Difficult 2020, Airbnb Files For IPO With US SEC

Airbnb faced a most difficult 2020 because its business model mostly relies on people traveling, but the company has now filed for IPO. The document was confidential at the time.

 

According to CNN, Airbnb submitted a document for an initial public offering to the US Securities and Exchange Commission on Wednesday 11th November 2020. As we mentioned earlier, the document was formerly confidential but its details are now available.

 

Airbnb focused on the impact of the COVID-19 pandemic on its business in most parts of its IPO document. It had written; “the impact of actions to mitigate the Covid-19 pandemic have materially adversely impacted and will continue to materially adversely impact our business, results of operations, and financial condition.”

 

Additionally, the company doubts being able to achieve probability due to the annual net losses it has been reporting since it began operating. Nothing compares to the losses it has suffered in 2020 despite reporting reduced revenue.

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The Verge reports that according to Airbnb’s filing, it has accumulated a loss of $696.9 million in just the first nine months of 2020. This is more than double the loss it acquired during the same period in 2019. Also, its revenue was reduced by about half as well. It reported $2.52 billion in 2020 revenue while the figure had been $4.81 billion in 2019.

 

The good news is that its business is returning despite the company’s cynicism. “In early 2020, as COVID-19 disrupted travel across the world, Airbnb’s business declined significantly. But within two months, our business model started to rebound even with limited international travel, demonstrating its resilience,” it announced.

 

At the height of the pandemic, Brian Chesky, Arbnb CEO had announced letting about 1,900 employees go. One thing had, however, been resounding clear throughout 2020; the company going public. It would have gone public in August but cancelled due to the pandemic. With Airbnb officially gone public, it mentions that it hopes to retain hosts and add new ones.

 

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.

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