Airbnb's Covid Comeback Is a Compelling IPO Pitch

Everything can look easy in hindsight, but with the hard numbers now available to show the magnitude of home-sharing upstart Airbnb Inc.’s remarkable financial recovery from the existential crisis it had earlier this year, it’s hard not to be impressed.

Late Monday, the San Francisco-based startup filed its initial public offering prospectus, showing that it generated more than $200 million in net profit for the three months ended in September. The results came after the company racked up nearly $900 million in aggregate losses in the prior two quarters following shelter-in-place orders from governments that decimated the travel industry. In the spring, during the worst of the crisis, Airbnb was forced to lay off 25% of its workforce and raise $2 billion of expensive debt financing while slashing other operating expenses.