Latest news with #EllieMertz
Yahoo
20-05-2025
- Business
- Yahoo
Tariff-Driven Dollar Woes Help Brighten First-Quarter Earnings
(Bloomberg) -- Tariffs unexpectedly devaluing the US dollar — and in turn boosting corporate earnings — was one of the few bright spots of the first-quarter earnings season in North America. America, 'Nation of Porches' NJ Transit Train Engineers Strike, Disrupting Travel to NYC NJ Transit Makes Deal With Engineers, Ending Three-Day Strike Contrary to what analysts and executives had expected at the beginning of the year, a Bloomberg gauge of the dollar has collapsed in recent months as investors moved out of US assets in response to the country's tariff policies. The currency is down more than 6% since the beginning of the year, the worst start for the measure going back to its launch two decades ago. Companies including Meta Platforms Inc. and Microsoft Corp. now expect foreign exchange to boost revenue by hundreds of millions of dollars, while McDonald's Corp. sees an earnings lift of 5 cents a share for the year versus the previously anticipated negative impact of 20 cents to 30 cents per share. The greenback has weakened 'materially' in 2025, a Morgan Stanley team led by Michael Wilson said in a recent note to clients. 'This is serving as a tailwind for large multinationals with high foreign sales exposure.' Positioning in the derivatives market suggests more losses ahead, albeit with diminished certainty following positive negotiations between the US and China in May. One-month risk reversals on the Bloomberg Dollar Spot Index — a measure that indicates how much traders are willing to pay for put options relative to call options — are now the most bearish on the US currency since March 2020. That's showing in corporate forecasts, too. Procter & Gamble Co.'s estimated foreign exchange impact for example has fallen by a third to $200 million compared with the start of the year. Airbnb Inc., which expected foreign exchange to be a drag for the year, now has a more positive view of the currency. 'Fast forward to where we are today, it's obviously less of a headwind,' Chief Financial Officer Ellie Mertz during the company's earnings call. On the other hand, there are some companies for whom the recent dollar slump is a burden. One of them is Germany's SAP SE, which generates a large proportion of earnings in the US currency. The firm's CFO expects a hit to earnings next year as currency hedges start to expire. Still, some companies will likely see the benefits of a weaker dollar continuing. Despite some tariff concerns easing, 'there's a structural negative narrative for the dollar, which I think will stay in place,' Bloomberg Intelligence Chief FX Strategist Audrey Childe-Freeman said on a recent call. Why Apple Still Hasn't Cracked AI Anthropic Is Trying to Win the AI Race Without Losing Its Soul Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Airbnb CFO talks new services & experiences features
Travelers can now book massages, haircuts, and chef-prepared meals directly through Airbnb (ABNB). Airbnb CFO Ellie Mertz joins Asking for a Trend to explain the company's launch of bookable services and experiences aimed at driving future revenue growth. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Airbnb has introduced a new feature that allows travelers to book services and experiences, such as getting a massage, a haircut, or a chef-prepared meal that could be added to a stay. For more, let's welcome in now, Ellie Mertz, Airbnb CFO. Ellie, it is good to see you. So, let's dig right into this news, Airbnb services. Ellie, walk us through what this means. Yes, so, when you think about why people choose a particular type of accommodation, often they are looking for what kind of services are available with that accommodations. And usually, you know, they look for hotels for those services. And starting today, you can book those services through Airbnb. We're offering things like chefs, catering, private prepared meals, massages, photography, such that your trips are even more special. And how, how does, how much would this cost me, Ellie? These haircuts and massages? So, we're trying to make sure that we have not only extremely high quality offerings on the platform, but they're also at a variety of price points. So, in terms of the services that we are launching with today, approximately 50% of our service providers have an offering that starts under $50. It's really important that our products are accessible to a wide variety of guests. And how do you pick the folks, Ellie, who are providing these services? How do you pick the hair stylists, the masseuse, the chef? Yes, so we're making sure that we're vetting our service providers for quality. Obviously, we're verifying their identification. We're also reviewing their licenses, their certifications. What we want to make sure is that when you come to Airbnb to book a service, you can trust us that it's high quality, that we've vetted the service provider, and that you're very likely to have a really great experience and service with us. So that was the, the, the services. You're also announcing today Airbnb experiences. Walk us through the details of that. Yes, so today, in addition to services, we also launched a reimagined Airbnb experiences product. And the way to think about this offering is it's unforgettable experiences hosted by locals who know their city best. What we know about travel is that approximately 70% of guests look for destinations where there's particular experiences that they are looking to have. We know they're also looking for authenticity in those experiences as well as human connections. And so that's really imbued in terms of the product offering that we've, we've launched today. If I was an Airbnb investor, Ellie, I might be thinking this sounds fun and exciting, and innovative and dynamic. I'd probably also be thinking, Ellie, when is it all gonna actually translate into material, meaningful revenue growth for the company? Do you think, is it 25, is it 26? What do you see ahead? Well, so today is day one. We're really excited to open up these offerings, not just to our guests, but also to, you know, attract new hosts to both our service offering as well as experience offerings. So today is day zero. It will take time to grow. But the goal with these offerings is to deliver material, incremental revenue growth to the top line in the years to come.
Yahoo
13-05-2025
- Business
- Yahoo
Airbnb CFO talks new services & experiences features
Travelers can now book massages, haircuts, and chef-prepared meals directly through Airbnb (ABNB). Airbnb CFO Ellie Mertz joins Asking for a Trend to explain the company's launch of bookable services and experiences aimed at driving future revenue growth. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Skift
13-05-2025
- Business
- Skift
Airbnb Relaunches Experiences, Adds Hotel-Style Services – Latest Move to Go Beyond Rentals
CEO Brian Chesky has been pushing the idea for a while that he wants to expand beyond the core business of short-term rentals. Now the company is investing upwards of $250 million. After several stops and starts, Airbnb is once again trying to expand beyond short-term rentals: It said Tuesday it is relaunching its experiences product and debuting a services offering that adds hotel-style amenities like chefs and massage therapists. Users will be able to book services in 10 categories: Chefs, photography, massage, spa treatments, personal training, hair, makeup, nails, prepared meals, and catering. It is launching in 260 cities, with more offerings and cities coming. The updated experiences offering is relaunching in 650 cities. Examples include: A tour of the newly reopened Notre-Dame with Axelle Ponsonnet, an architect from the restoration team Ramen cooking class in Japan with Michelin-recognized chef Saburo Ishigōka The company is also introducing Airbnb Originals, curated experiences exclusive to the company: Baking lessons with French Bastards chef Raphaelle Elbaz; a beach volleyball game with Olympian Carol Solberg on Rio's Leblon Beach, and hangouts with celebrities like Megan Thee Stallion and Patrick Mahomes. The redesigned Airbnb app displays Homes, Experiences, and Services across the top of the screen. Source: Airbnb 'Beyond the Core' The new offerings are part of Airbnb's long-term vision, said Airbnb CFO Ellie Mertz. 'If you think about where our vision has always been, it has been to, what we call, 'Expand beyond the core' — expand beyond accommodations,' Mertz said in an interview with Skift. 'North of 70% of travelers say they are looking for something to do when they travel." Airbnb first launched experiences in 2016 and halted the offering during the pandemic. It resumed in 2022, but again paused in early 2023. The company started taking new applications last year. Airbnb has emphasized that the Experiences and Services hosts have been heavily vetted this time around. Services hosts are licensed and have an average of 10 years of experience, Airbnb said. And Experiences hosts are vetted for expertise and a connection to the local areas. There's an effort to hit all price points: Airbnb said the cheapest service is less than $50. The company had a call out for hosts to kick off the new experiences and services. Additional hosts can apply through the app starting Tuesday. These hosts pay Airbnb roughly 20%, with some variance. Brian Chesky, co-founder and CEO of Airbnb, discussed the long-term vision at the Skift Global Forum last September. 'Why would Airbnb just offer homes? Why couldn't we offer significantly more things? And that's the future of this company," Chesky said.'I anticipate, every year, we launch two to three things that could eventually generate a billion dollars a year annually in revenue.' Redesigned App There is also a redesigned app that showcases all three offerings throughout. The Explore tab now shows experiences and services options in addition to stays, with icons across the top. The app suggests specific offerings based on the user's location and who the user is traveling with. The Trips tab builds an itinerary based on bookings the user has made. 'That, I think, is a hugely important component here. With this new app, we become a single destination to book all of these things and to begin to build your trip,' Mertz said. 'This is a very material first step for us to bring the app in the direction of being a true travel concierge. You can see through this redesigned app that is the direction that we are headed.' Does the emphasis on itineraries mean flight and rideshare bookings could be coming to Airbnb? 'We're not launching any of those this week. But you can imagine that these are not the only things that we are working on. And the intent is to further fill out that trip itinerary," Mertz said. The redesigned Trip tab. Source: Airbnb Listing pages detail the host's qualifications, offerings, and pricing. Booking an experience or service is similar to booking an accommodation. The messaging function now allows photo and video sharing, as well as integrated payment options for customizing services. There's more of a social media aspect, too, as the user profile has gained more prominence over the past year or so. For group experiences, users can see who else has booked, as well as message the group or individual guests during and after the experience. Booking a service on Airbnb. Source: Airbnb Financials Airbnb plans to invest between $200 million and $250 million this year on Experiences and Services. That covers the team that has been working for about nine months to build a supply for launch and scaling post-launch. 'The thinking is that 2025 is about launching, ensuring that we have product market fit, and iterating with the goal that we exit this year with a strong, scaled exit rate. And that in future years, these new businesses will continue to grow to meaningfully contribute to the top line,' Mertz said. She said that the company doesn't plan to break out financials for the new offerings in the near term, but it will provide reports to show how well the businesses are scaling. Airbnb has not disclosed the financials of the previous, but Skift has reported that the offering did not generate meaningful revenue. 'The expectation is that in 2025 this will not be a material driver of revenue growth, but as we scale in future years, it should be,' Mertz said.
Yahoo
05-05-2025
- Business
- Yahoo
ABNB Q1 Earnings Call: Management Focuses on International Growth and Product Expansion Amid Mixed Regional Trends
Online accommodations platform Airbnb (NASDAQ:ABNB) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 6.1% year on year to $2.27 billion. The company expects next quarter's revenue to be around $3.02 billion, close to analysts' estimates. Its non-GAAP profit of $0.24 per share was in line with analysts' consensus estimates. Is now the time to buy ABNB? Find out in our full research report (it's free). Revenue: $2.27 billion vs analyst estimates of $2.26 billion (6.1% year-on-year growth, 0.6% beat) Adjusted EPS: $0.24 vs analyst estimates of $0.24 (in line) Adjusted EBITDA: $417 million vs analyst estimates of $363.2 million (18.4% margin, 14.8% beat) Revenue Guidance for Q2 CY2025 is $3.02 billion at the midpoint, roughly in line with what analysts were expecting Operating Margin: 1.7%, down from 4.7% in the same quarter last year Free Cash Flow Margin: 78.4%, up from 18.5% in the previous quarter Nights and Experiences Booked: 143.1 million, up 10.5 million year on year Market Capitalization: $77.08 billion Airbnb's first quarter results were shaped by ongoing product upgrades and regional divergence in guest demand. Management highlighted strong momentum in expansion markets, particularly in Latin America and Asia Pacific, offset by slower growth in North America. CEO Brian Chesky emphasized that improvements such as the Guest Favorites feature and global rollout of total price display have enhanced the platform's reliability and affordability for both guests and hosts. CFO Ellie Mertz noted that short-lead bookings remained robust, while longer-lead bookings in the U.S. exhibited softness due to economic uncertainty. Looking ahead, Airbnb expects international markets to remain a key growth engine, with the company investing in both localized marketing and product features to build market share outside its core geographies. The upcoming May product launch is expected to initiate new revenue streams, though management cautioned that its impact will be modest in the near term. Mertz reiterated that investments in new offerings will compress margins in the back half of the year, but are intended to drive long-term revenue growth as these initiatives scale. Management's remarks on the call centered on product enhancements, regional performance, and preparations for expansion beyond the core home rental business. The quarter's outcomes reflected a combination of targeted product improvements and shifting travel patterns in different markets. International market momentum: Expansion markets, especially in Latin America and Asia Pacific, outpaced the core regions in growth. Management attributed this to localized product and marketing strategies, with Brazil highlighted for accelerating both origin nights and first-time bookers. Product upgrades drive conversion: Continued enhancements—such as the Guest Favorites listing, total price display, and streamlined checkout—were cited as key drivers for higher customer satisfaction and increased booking conversion. Over 350 million nights have been booked via Guest Favorites since launch. US travel softness and booking trends: In North America, Airbnb saw slower growth, with management attributing this to broader economic uncertainty and a shift toward shorter booking lead times. Higher-income travelers remained resilient, but bookings for further-out dates softened. Affordability and pricing transparency: The global rollout of total price display and new host pricing tools were intended to reinforce Airbnb's affordability advantage. Management noted that hosts have more flexibility to adjust prices, which could support bookings if consumer spending weakens. App rebuild for future offerings: Airbnb completed a rebuild of its app on a new technology stack, enabling faster updates and the planned addition of services beyond accommodations. This lays the groundwork for the May 2025 product release, which will introduce new business lines. Management's outlook for the upcoming quarter and year centers on expanding into new markets, continued investment in product improvements, and scaling new business lines, with international growth expected to offset North American softness. Expansion market investments: Airbnb is prioritizing localized product features and marketing in underpenetrated regions, with management expecting these efforts to deliver above-average growth rates and help diversify revenue. Scaling new product offerings: The upcoming launch of new business lines will increase expenses in the short term, compressing margins, but management believes these initiatives will support revenue growth over multiple years as they scale. Macro and consumer demand risks: Ongoing geopolitical and economic uncertainty, especially in North America, remains a risk to booking trends and pricing power, with management closely monitoring shifts in consumer behavior and adjusting marketing tactics accordingly. Justin Post (Bank of America): Asked about the decline in inbound foreign travel to the U.S. Ellie Mertz clarified that this corridor represents only 2-3% of Airbnb's business and that the slowdown reflects shifting destination choices, not overall demand loss. Richard Clarke (Bernstein): Inquired about specific U.S. guest behaviors contributing to slower growth. Mertz responded that short-lead bookings are strong while longer-term bookings have softened, with no significant evidence of guests trading down to lower-priced options. Mark Mahaney (Evercore ISI): Queried which initiatives could most accelerate nights booked growth. Brian Chesky pointed to core service improvements, international market expansion, and usability upgrades as the primary levers for re-accelerating growth. Jed Kelly (Oppenheimer): Asked about the potential for expanding hotel offerings and margin guidance stability. Chesky highlighted plans to increase hotel inventory, and Mertz reiterated no material changes to annual margin guidance despite investment in new initiatives. Ron Josey (Citi): Sought details on the impact of the May product launch and how affordability initiatives might influence bookings. Mertz explained the immediate top-line impact will be modest, but affordability measures should help capture demand, especially for nearby or lower-cost stays. Looking to the next few quarters, the StockStory team will be monitoring (1) the performance of Airbnb's newly launched business lines and their adoption rates among guests and hosts, (2) sustained growth in expansion markets, particularly in Latin America and Asia Pacific, and (3) the impact of affordability and pricing transparency initiatives on booking volumes in North America, where demand has been more volatile. The effectiveness of marketing investments and continued product enhancements will also be important indicators of execution. Airbnb currently trades at a forward EV/EBITDA ratio of 18.5×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today.
