Airbnb, Inc. stock research
FY2025 Q1
Airbnb (ABNB) Gross Margin — Quarter Ended Mar 31, 2025
Revenue declined from the previous quarter while cost of revenue increased, causing gross profit to fall and gross margin to weaken. Compared to the same quarter last year, revenue was higher and cost of revenue grew at a slower pace, resulting in a slightly improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue declined from the previous quarter while cost of revenue increased, causing gross profit to fall and gross margin to weaken. Compared to the same quarter last year, revenue was higher and cost of revenue grew at a slower pace, resulting in a slightly improved gross margin.
- The strongest observable driver was the sequential increase in cost of revenue relative to revenue, which reduced gross margin.
- On a sequential basis, gross margin weakened. On a year-over-year basis, gross margin improved slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.7%
Gross profit
$1.8B
Revenue
$2.3B
Cost of revenue
$506.0M
Quarter-over-quarter change
-5.1 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $2.3B | $1.8B | $506.0M | 77.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-5.1 pts
Year-over-year change
Mar 31, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the sequential increase in cost of revenue relative to revenue, which reduced gross margin.
On a sequential basis, gross margin weakened. On a year-over-year basis, gross margin improved slightly.
Monitor the trend of cost of revenue growth relative to revenue growth in upcoming quarters.