Stock Analysis on Net
Stock Analysis on Net

Airbnb Inc. (NASDAQ:ABNB)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Airbnb Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal 19 19 5 (91)
State 8 10 2 (1)
Foreign 158 68 34 14
Current provision for (benefit from) income taxes 185 97 41 (78)
Federal (2,410) — — —
State (461) — — —
Foreign (4) (1) 11 (20)
Deferred provision for (benefit from) income taxes (2,875) (1) 11 (20)
Provision for (benefit from) income taxes (2,690) 96 52 (97)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Current provision for (benefit from) income taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Airbnb Inc. current provision for (benefit from) income taxes increased from 2021 to 2022 and from 2022 to 2023.
Deferred provision for (benefit from) income taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Airbnb Inc. deferred provision for (benefit from) income taxes decreased from 2021 to 2022 and from 2022 to 2023.
Provision for (benefit from) income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Airbnb Inc. provision for (benefit from) income taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Effective Income Tax Rate (EITR)

Airbnb Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00%
State taxes, net of federal benefits 0.30% 0.40% -0.70% 0.00%
Foreign tax rate differential 2.90% 1.00% -5.10% -0.50%
Stock-based compensation -16.70% -6.90% 282.40% 7.10%
Deferred tax impacts of restructuring 0.00% 0.00% -9.70% 6.50%
Other statutorily non-deductible expenses 0.10% 0.30% -1.10% -0.30%
Non-deductible warrant revaluations 0.00% -0.10% -20.40% -3.90%
Research and development credits -5.50% -4.70% 51.00% 4.30%
Uncertain tax positions, prior year positions 1.80% 0.10% -3.10% -0.10%
Uncertain tax positions, current year positions 1.70% 0.80% -1.00% -0.20%
U.S. tax on foreign income, net of allowable credits and deductions 3.90% 0.70% 0.00% 0.00%
Foreign-derived intangible income deduction -1.00% -1.90% 0.00% 0.00%
Other 0.10% 0.10% 1.30% 0.30%
Change in valuation allowance -136.60% -6.00% -331.90% -32.10%
Effective tax rate -128.00% 4.80% -17.30% 2.10%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Airbnb Inc. effective tax rate increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Airbnb Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net operating loss carryforwards 1,232 1,539 1,988 1,078
Tax credit carryforwards 844 664 568 334
Accruals and reserves 113 123 106 70
Non-income tax accruals 78 68 65 72
Stock-based compensation 70 111 157 211
Operating lease liabilities 62 73 87 95
Intangible assets 158 188 210 274
Capitalized research and development costs 671 413 — —
Other 55 37 155 53
Gross deferred tax assets 3,283 3,216 3,335 2,188
Valuation allowance (364) (3,166) (3,264) (2,053)
Deferred tax assets 2,919 50 71 135
Property and equipment basis differences (18) (9) (8) (34)
Operating lease assets (18) (23) (49) (73)
Other (2) (2) — (3)
Deferred tax liabilities (38) (34) (56) (109)
Net deferred tax assets (liabilities) 2,881 16 15 26

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Airbnb Inc. gross deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Airbnb Inc. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Airbnb Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Airbnb Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax assets 2,881 16 15 26

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Airbnb Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Airbnb Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 20,645 16,038 13,708 10,491
Less: Noncurrent deferred tax assets, net 2,881 16 15 26
Total assets (adjusted) 17,764 16,022 13,694 10,466
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 8,165 5,560 4,776 2,902
Less: Net deferred tax assets (liabilities) 2,881 16 15 26
Stockholders’ equity (adjusted) 5,284 5,544 4,761 2,876
Adjustment to Net Income (loss)
Net income (loss) (as reported) 4,792 1,893 (352) (4,585)
Add: Deferred income tax expense (benefit) (2,875) (1) 11 (20)
Net income (loss) (adjusted) 1,917 1,892 (341) (4,604)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Airbnb Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Airbnb Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 48.32% 22.54% -5.88% -135.71%
Adjusted net profit margin 19.33% 22.53% -5.69% -136.30%
Total Asset Turnover
Reported total asset turnover 0.48 0.52 0.44 0.32
Adjusted total asset turnover 0.56 0.52 0.44 0.32
Financial Leverage
Reported financial leverage 2.53 2.88 2.87 3.62
Adjusted financial leverage 3.36 2.89 2.88 3.64
Return on Equity (ROE)
Reported ROE 58.69% 34.05% -7.37% -158.00%
Adjusted ROE 36.28% 34.13% -7.16% -160.08%
Return on Assets (ROA)
Reported ROA 23.21% 11.80% -2.57% -43.70%
Adjusted ROA 10.79% 11.81% -2.49% -43.99%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Airbnb Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Airbnb Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Airbnb Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Airbnb Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Airbnb Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Airbnb Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 4,792 1,893 (352) (4,585)
Revenue 9,917 8,399 5,992 3,378
Profitability Ratio
Net profit margin1 48.32% 22.54% -5.88% -135.71%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 1,917 1,892 (341) (4,604)
Revenue 9,917 8,399 5,992 3,378
Profitability Ratio
Adjusted net profit margin2 19.33% 22.53% -5.69% -136.30%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × 4,792 ÷ 9,917 = 48.32%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenue
= 100 × 1,917 ÷ 9,917 = 19.33%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Airbnb Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenue 9,917 8,399 5,992 3,378
Total assets 20,645 16,038 13,708 10,491
Activity Ratio
Total asset turnover1 0.48 0.52 0.44 0.32
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue 9,917 8,399 5,992 3,378
Adjusted total assets 17,764 16,022 13,694 10,466
Activity Ratio
Adjusted total asset turnover2 0.56 0.52 0.44 0.32

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2023 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 9,917 ÷ 20,645 = 0.48

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 9,917 ÷ 17,764 = 0.56

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Airbnb Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 20,645 16,038 13,708 10,491
Stockholders’ equity 8,165 5,560 4,776 2,902
Solvency Ratio
Financial leverage1 2.53 2.88 2.87 3.62
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 17,764 16,022 13,694 10,466
Adjusted stockholders’ equity 5,284 5,544 4,761 2,876
Solvency Ratio
Adjusted financial leverage2 3.36 2.89 2.88 3.64

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 20,645 ÷ 8,165 = 2.53

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 17,764 ÷ 5,284 = 3.36

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Airbnb Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 4,792 1,893 (352) (4,585)
Stockholders’ equity 8,165 5,560 4,776 2,902
Profitability Ratio
ROE1 58.69% 34.05% -7.37% -158.00%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 1,917 1,892 (341) (4,604)
Adjusted stockholders’ equity 5,284 5,544 4,761 2,876
Profitability Ratio
Adjusted ROE2 36.28% 34.13% -7.16% -160.08%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2023 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 4,792 ÷ 8,165 = 58.69%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 1,917 ÷ 5,284 = 36.28%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Airbnb Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 4,792 1,893 (352) (4,585)
Total assets 20,645 16,038 13,708 10,491
Profitability Ratio
ROA1 23.21% 11.80% -2.57% -43.70%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 1,917 1,892 (341) (4,604)
Adjusted total assets 17,764 16,022 13,694 10,466
Profitability Ratio
Adjusted ROA2 10.79% 11.81% -2.49% -43.99%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 4,792 ÷ 20,645 = 23.21%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 1,917 ÷ 17,764 = 10.79%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Airbnb Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.