On November 8th, Airbnb released its financial results for the third quarter of 2024. In the third quarter, Airbnb's revenue increased by 10% year-on-year, reaching $3.7 billion. The net profit for the third quarter reached $1.4 billion, with a net profit margin of 37%. The adjusted EBITDA reached $2 billion, a year-on-year increase of 7%, and the adjusted EBITDA profit margin reached 52%. In the third quarter, Airbnb's free cash flow was $1.1 billion, and in the past 12 months, Airbnb's free cash flow reached $4.1 billion.
The growth in revenue is mainly due to the increase in Airbnb's accommodation bookings and a slight increase in average room rate (ADR). In the third quarter, Airbnb's accommodation and experience bookings increased by 8% year-on-year. Aibiying stated that although it started slightly slower this quarter, it still achieved double-digit growth at the end of the third quarter thanks to the steady increase in monthly bookings.
In terms of net profit, the net profit for the third quarter of 2024 decreased from $4.4 billion in the same period of 2023 to $1.4 billion, mainly due to the company releasing $2.8 billion in US deferred tax asset reserves in 2023 and non cash tax expenses incurred from the partial use of these assets in 2024.
In the third quarter, based on the source of customers, Airbnb's total room and night bookings in emerging markets have grown by more than twice as much as Airbnb's core markets. Aibiying stated that this is mainly due to its global growth strategy.
Judson Coplan, Vice President of Product Marketing at Airbnb, mentioned in an interview with Interface News that travelers from many countries and regions around the world can use Airbnb, and global growth strategy is one of Airbnb's strategic priorities. In the global market, China and even the Asia Pacific region have different meanings for Airbnb.
In the shareholder letter, Airbnb mentioned that in the third quarter, the booking volume for accommodation and experiences in the Asia Pacific region increased by 19% year-on-year, unchanged from the previous quarter, mainly relying on the overall cross-border travel growth of 23% year-on-year in the Asia Pacific region. Airbnb mentioned that it is particularly encouraged by the recovery of China's outbound tourism business in the overall growth of the Asia Pacific region.
I think the significance of the Chinese market for Airbnb is multifaceted, and China has played a crucial role in Airbnb's global growth, "Ke Jiayan told Jiemian News.
He believes that firstly, focusing on the Chinese market, UN Tourism data shows that Chinese tourists will spend a total of $196.5 billion overseas in 2023, returning to the top position in global tourism spending and having enormous potential for international tourism consumption. Secondly, China has a large and active number of young Generation Z travelers who crave a unique and authentic accommodation experience during their travels. For these younger, more curious, and adventurous travelers, Airbnb is a great choice.
In the past few years, Airbnb has focused on its accommodation business, continuously launching updates and upgrades to its products. In October of this year, Airbnb once again announced a comprehensive upgrade to its app, launching over 50 new product features. On the supply side, Airbnb has also launched the "Co Host Network" feature to help landlords easily find local property managers and work together to create a better accommodation experience for guests.
For decades, the travel apps we have used have been the same, and everyone's experience on the platform has been similar. Today's experience using this app is not much different from a few months later. But in this product launch, Airbnb wants to change this. Personalization is a major theme of this product launch, "Judson Coplan, Airbnb's Vice President of Product Marketing, told Interface News in an interview.
We will enhance our understanding of users through their booking history, search history, and personal profiles, and with the support of artificial intelligence, further improve their personalized experience through product updates. He said that Airbnb hopes to let more travelers know and understand Airbnb through its twice yearly product releases. At the same time, Airbnb also pays great attention to the experience of its loyal users. By making the app experience more personalized, it can enhance user stickiness and increase user frequency of use.
Ke Jiayan stated that in this upgrade, all new features released will be localized and adapted for Chinese users, allowing everyone to experience a tailored product experience. In the continuous product innovation work, not only can Chinese users simultaneously enjoy the latest product features launched by Airbnb globally, but the Chinese team also actively outputs localized product experience to help expand and grow business in key global markets.
A feature tailored by Airbnb for users in China, Japan, and South Korea is "Guest Speak", which allows users to quickly see how other Airbnb guests evaluate a property while browsing the property page. Because China, Japan, and South Korea all use character based languages, information can be presented at high density in limited spaces. This feature is inspired by the experience of our Chinese team. We found that Chinese users pay special attention to the descriptions, reviews, and check-in experiences of other Chinese guests when searching for properties. This is a very helpful insight for us and adds icing on the cake to our product launch, "said Ke Jiayan.
This winter, Airbnb data shows that Japan, Thailand, the United States, South Korea, New Zealand, Australia, France, Norway, the United Kingdom, and Canada are among the top 10 popular destinations for Chinese travelers during their "Double Dan" holidays. Among them, the search popularity in Indonesia has increased by nearly three times compared to the same period last year, and Bangkok, Chiang Mai, Bali, Phuket, Kuala Lumpur, and Pattaya have become popular cities for "winter birds flying south" warm vacations. With the arrival of the snow season, ski resorts in Europe and Japan are becoming increasingly popular, with destinations in the Alps such as Italy, Switzerland, and Austria experiencing high levels of heat; In short distance destinations such as Sapporo, Niseko, Furano, and Hakuba Village in Japan, powder snow paradise has gained popularity among Chinese skiing enthusiasts.
The enthusiasm of Chinese travelers for outbound travel continues, and during the peak travel season at the end of the year, the Chinese market is expected to continue to be a growth engine for Airbnb's performance.