Airbnb's (ABNB) revenue for Q3 2024 increased to $3.732 billion, up from $3.397 billion in Q3 2023, representing a year-over-year growth of approximately 9.9%. For the nine months ended September 30, 2024, revenue grew to $8.622 billion from $7.699 billion in the same period of 2023, reflecting a growth rate of approximately 12%.

Net income for Q3 2024 was $1.368 billion, a significant decline from $4.374 billion in Q3 2023. This drop is primarily attributed to a sharp increase in the provision for income taxes, which rose to $367 million in Q3 2024 from a tax benefit of $2.695 billion in Q3 2023. For the nine months ended September 30, 2024, net income was $2.187 billion, down from $5.141 billion in the same period of 2023.

Net income as a percentage of revenue also declined significantly, from 129% in Q3 2023 to 37% in Q3 2024, and from 67% to 25% for the nine-month periods.

Airbnb's operating income for Q3 2024 was $1.525 billion, slightly higher than the $1.496 billion reported in Q3 2023. For the nine months ended September 30, 2024, operating income increased to $2.123 billion from $2.014 billion in the same period of 2023. This indicates that the company maintained strong operational performance despite the decline in net income.

Adjusted EBITDA for Q3 2024 was $1.958 billion, up from $1.834 billion in Q3 2023, representing a margin of 52% compared to 54% in the prior year. For the nine-month period, Adjusted EBITDA grew to $3.276 billion from $2.915 billion, maintaining a margin of 38% for both years.

Airbnb's cost structure saw increases across several categories in Q3 2024 compared to Q3 2023. Cost of revenue rose slightly to $465 million from $459 million, while sales and marketing expenses increased significantly to $514 million from $403 million. Product development costs also grew to $524 million from $419 million, reflecting continued investment in innovation. Total costs and expenses for Q3 2024 were $2.207 billion, up from $1.901 billion in Q3 2023, leading to a slight decline in operating margin.

For the nine months ended September 30, 2024, total costs and expenses increased to $6.499 billion from $5.685 billion in the same period of 2023, driven by similar trends in cost categories.

Airbnb's cash flow performance remained robust. Net cash provided by operating activities for the nine months ended September 30, 2024, was $4.052 billion, up from $3.821 billion in the same period of 2023. This increase was primarily driven by net income of $2.187 billion, growth in unearned fees due to higher bookings, and adjustments for non-cash charges such as $1.039 billion in stock-based compensation.

Free cash flow for the nine-month period also increased to $4.026 billion from $3.791 billion in 2023, maintaining a strong free cash flow margin of 47% compared to 49% in the prior year.

Airbnb's tax provision had a significant impact on its financial results. The provision for income taxes in Q3 2024 was $367 million, compared to a tax benefit of $2.695 billion in Q3 2023. For the nine months ended September 30, 2024, the tax provision was $522 million, a sharp reversal from a tax benefit of $2.656 billion in the same period of 2023. This change in tax expense is a key factor behind the decline in net income.

Earnings per share (EPS) for Q3 2024 declined significantly. Basic EPS was $2.17, down from $6.83 in Q3 2023, while diluted EPS was $2.13, compared to $6.63 in the prior year. For the nine months ended September 30, 2024, basic EPS was $3.45, down from $8.08 in 2023, and diluted EPS was $3.38, compared to $7.74 in the prior year. This decline reflects the impact of lower net income and higher tax expenses.