Airbnb, Inc. stock research
FY2023 Q2
Airbnb (ABNB) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose only slightly, resulting in an improved gross margin. Gross margin strengthened sequentially and year-over-year, reflecting that cost of revenue grew at a slower pace than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose only slightly, resulting in an improved gross margin. Gross margin strengthened sequentially and year-over-year, reflecting that cost of revenue grew at a slower pace than revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue stability. Cost of revenue increased modestly relative to the revenue increase, which directly supported gross margin expansion.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.6%
Gross profit
$2.1B
Revenue
$2.5B
Cost of revenue
$432.0M
Quarter-over-quarter change
+6.2 pts
Year-over-year change
+1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.8B | $1.4B | $428.0M | 76.5% |
| Jun 30, 2023 | $2.5B | $2.1B | $432.0M | 82.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+6.2 pts
Year-over-year change
Jun 30, 2022
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue stability. Cost of revenue increased modestly relative to the revenue increase, which directly supported gross margin expansion.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Monitor cost of revenue trends for any acceleration that could narrow the margin.