Airbnb, Inc. stock research
FY2024 Q4
Airbnb (ABNB) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Cost of revenue was lower than the prior quarter and higher than the year-ago quarter, while gross margin weakened sequentially but remained nearly stable year over year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Cost of revenue was lower than the prior quarter and higher than the year-ago quarter, while gross margin weakened sequentially but remained nearly stable year over year.
- The gross margin weakened sequentially as revenue declined more than cost of revenue, while the year-over-year comparison showed a nearly stable margin. The strongest observable driver is the relationship between revenue and cost of revenue changes across periods.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.8%
Gross profit
$2.1B
Revenue
$2.5B
Cost of revenue
$427.0M
Quarter-over-quarter change
-4.8 pts
Year-over-year change
+0.1 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, 2024 | $2.1B | $1.7B | $480.0M | 77.6% |
| Jun 30, 2024 | $2.7B | $2.2B | $506.0M | 81.6% |
| Sep 30, 2024 | $3.7B | $3.3B | $465.0M | 87.5% |
| Dec 31, 2024 | $2.5B | $2.1B | $427.0M | 82.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-4.8 pts
Year-over-year change
Dec 31, 2023
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as revenue declined more than cost of revenue, while the year-over-year comparison showed a nearly stable margin. The strongest observable driver is the relationship between revenue and cost of revenue changes across periods.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable.
Monitor the trend in cost of revenue relative to revenue, as its proportion increased sequentially and contributed to the margin weakening.