Airbnb and DoorDash went public at the same time, but see very different paths after the pandemic

Airbnb and DoorDash went public at the same time, but see very different paths after the pandemic

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In a letter to investors, Airbnb said it was “preparing for the travel recovery” in 2021, after seeing reservations through its platform drop 41% in 2020, as most people stayed home due to pandemic.

“As the vaccine is launched and restrictions increase, we expect a significant recovery in travel,” the company wrote in the letter.

DoorDash, on the other hand, has benefited greatly from people asking for food and essentials while staying at home, with revenue of $ 2.89 billion last year, more than tripling over the previous year. “Although the Covid-19 pandemic was a favorable factor for all online commerce in 2020, we are proud of the extraordinary gains we have made over competitors in the category,” the company said in its letter to investors.
Airbnb just debuted on Wall Street. Now worth more than Marriott and Hilton together

But there is some cause for concern ahead. Although the company said it expects “markets to start opening soon,” it also indicated a resulting negative impact on its business. DoorDash said that this return to normal could result in “declines in consumer engagement and average order values, although the exact amount remains uncertain.”

While Airbnb’s shares were virtually stable after trading on Thursday after the earnings report, DoorDash’s shares fell more than 11%. Both companies remain well above their IPO prices.

For now, the two companies continue to face challenges.

Despite strong revenue growth in the fourth quarter, DoorDash’s losses have also grown. It lost $ 312 million in the quarter, compared to $ 134 million during the same period last year. The company made its first profit – $ 23 million – in the second quarter of 2020, before reporting losses again in the third quarter.

Airbnb, for its part, recorded an impressive loss of $ 3.9 billion in the fourth quarter, with $ 2.8 billion related to share-based compensation. The company said it lost $ 4.6 billion in 2020.

In its earnings report, Airbnb focused on the fact that its fourth quarter revenue fell “only 22% year on year, demonstrating Airbnb’s resilience”. It generated revenue of $ 859 million in the fourth quarter, despite increases in coronavirus cases.

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