Technology company Airbnb Inc. has certainly outpaced the expectations of many private investors, leading analysts and speculators to believe that 2018 would be the year Airbnb would go public. The company has announced that it will likely move forward with going public sometime in 2019, as the home-renting company looks to fill key positions prior to such an IPO (the departure of chief financial officer Laurence Tosi earlier this year has left an important void to fill prior to the company going public).
Assuming everything remains on track and Airbnb decides to go public next year, expectations are that this could be one of the biggest initial public offerings of the year, with the company already receiving a market capitalization of $31 billion U.S. by private investors, meaning a public offering is likely to be priced significantly higher next year.
Part of the basis for a valuation in the $50 billion U.S.+ range is the fact that Airbnb has been able to grow its top and bottom lines impressively in recent years, offsetting investor concerns about key metropolitan cities restricting Airbnb use due to a perceived issue with Airbnb restricting housing stock in cities with supply and demand imbalances. Airbnb has reported quarterly revenue which has reportedly exceeded $1 billion U.S. (and then some) this most recent quarter, lining the company up for two consecutive years of profitability prior to launching an IPO next year. With a range of avenues for additional monetization and value creation, Airbnb will be a company to keep your eye on next year.
Invest wisely, my friends.
