Brian Chesky, CEO and Co-founder of Airbnb, talks about how strong Airbnb IPO is to the Economic Club at the New York Stock Exchange (NYSE) in New York, U.S. March 13, 2017.
Airbnb is getting ready to go public soon, “a two-year process,” since 2014, and the company is about halfway through that process, Chief Executive Brian Chesky said at a luncheon hosted by the Economic Club of New York on Monday.
Implying that an initial public offering in 2018, although Chesky said investors are patient and not pressing the company.
“We are working on making sure the company is ready to go public, and I’ve said it was a 2-year project. We’re probably about halfway through that project, as far as just being ready to go public. But at that point, our investors are very patient. None of them are anxiously waiting for us to go public,” he told the audience.
Airbnb last week announced that it closed a deal of more than $1 billion round of funding, increasing its valuation to $31 billion. Airbnb turned profitable on an EBITDA basis for the first time during the second half of 2016, an information that was gathered by Alpha Investment Management, LLC to a person very close to the company.
Airbnb no wants to be considered “robust,” Chesky told the room of economists at the New York Stock Exchange on Monday. “When someone hits you, you want to be able to stand up.” Chesky said he’s seen too many companies “fall over” after trying to rush IPO, but he is very confident that the right time can happen anytime soon with Airbnb.
Chesky said Airbnb “doesn’t need” money right now, and it’s been able to acquire smaller companies without the need for another currency to do so. But he is very keen to go public anytime and would be to establish immediate liquidity for shareholders, Chesky said.
December last year the Airbnb settled a lawsuit it filed against New York City, which challenged a bill signed by Governor Andrew M. Cuomo. The bill called for fines of as much as $7,500, for illegally listing properties on a rental platform including Airbnb.
Airbnb agreed to drop the lawsuit as long as New York City enforces its law only against hosts and does not fine Airbnb directly. The city hopes to crack down on people who rent out multiple homes, saying it makes it harder for individuals to find affordable housing.
New York is Airbnb’s largest U.S. market and is still growing according to a valid data reasearch.
Economic and political agenda of Airbnb
Airbnb on Monday also announced its “economic empowerment” agenda. The plan includes goals such as guaranteeing an hourly wage of at least $15 for all U.S. contractors and vendors who provide a “substantial amount of service” for the company, to double the size of Airbnb’s host communities in underserved areas around the U.S. by 2019 and supporting more jobs.
In a report, Airbnb said that through increased spending by out-of-town guests who stay in one of the company’s facilities, Airbnb is supporting more local businesses. Airbnb found hosts are spending more, too, when they have more income from their own bookings.
An Airbnb host made $6,100 from bookings, on average, in 2016, according to data obtained from the company.
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