Airbnb set to swing to a loss ahead of 2020 market debut
Holiday letting platform Airbnb reportedly swung to a loss last year, raising concerns ahead of its planned initial public offering (IPO) later this year.
The tech giant reported a $322m (£248.65m) net loss in the nine months to September as costs spiked, down from $200m profit the previous year, the Wall Street Journal reported.
Airbnb was tipped to be one of the few profitable tech firms to launch a stock market listing, following the disappointing public listing of Uber and Wework’s decision to abandon its IPO last year.
Data from Pitchbook said Airbnb’s most recent valuation was $31bn, according to Reuters. However, the firm’s latest internal valuation is reportedly lower than that.
The company announced last year that it would be ready to make its market debut in 2020, which is expected to be a direct listing.
However, the timing of the listing could reportedly be affected by the outbreak of coronavirus in China, one of the company’s crucial growth markets.
On Monday the company said it has suspended bookings in Beijing until 29 February, and Airbnb could wait until the disruption caused by coronavirus subsides before it presses ahead with the listing.
The WSJ added that any listing this year would likely be in the third quarter or later.