Tren Griffin @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Nov. 24, 2019 1 min read

1/ 25iQuiz: Why does this writer use the phrase "make money"? Because it isn't clear what markets want? Free cash flow? Earnings?

Airbnb's "first half losses may complicate its ability to portray itself to investors as a tech company that makes money."  https://www.theinformation.com/articles/airbnb-lost-100-million-in-q2 

2/ "Airbnb sales and marketing investments rose 58% year over year to $367M in the first quarter and marketing spend is expected to come in above the $1.1B spent in 2018. Revenue reportedly grew 31% year over year to $839M, while expenses climbed 47%."  https://www.google.com/amp/s/www.cnbc.com/amp/2019/10/17/airbnbs-quarterly-loss-reportedly-doubled-in-q1.html 

3/ "Working from The Information’s excellent report,

Q1 2018 revenue: $0.64 billion

Q1 2018 cost of revenue: $0.20 billion.

Q1 2018 implied gross margin: 68.75 percent."

 https://news.crunchbase.com/news/tracking-airbnbs-gross-margins/ 

4/ "Airbnb surpassed $1B in revenue in the second quarter of 2019 and in the third quarter of 2018, but we’re guessing the business did not top $1B in Q4 of 2018 or Q1 of 2019 because it if had, that information would probably have been 'leaked.'"  https://techcrunch.com/2019/10/17/airbnbs-wework-problem/ 

5/ "Airbnb presents itself as having a competitive advantage over online travel agency rivals Booking Holdings and Expedia Group, which collectively spend some $10B annually in marketing, much of it with Google."  https://skift.com/2019/10/17/did-airbnbs-contrarian-narrative-just-get-messed-up/ 

6/ "One can guess from the $367 million in sales and marketing spend in the first quarter that Airbnb is on a path toward shelling out at least $2 billion in sales and marketing in 2019. That’s still not in the same conversation with what Expedia and Booking Holdings will spend."


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