The company submitted a request for an initial public offering on Monday, and issued its IPO prospectus, so that the prospectus gives an in-depth look at the company’s business, especially the extent of the damage that has hit the platform due to the Coronavirus pandemic.
Airbnb says its business will continue to be affected by reducing people to travel as the virus continues to spread.
The Home Sharing Company allows users to book rentals and short-term experiences while traveling, and explained that Google preferred its products to Airbnb products, which led to a decrease in the number of visitors to its website.
Last year, Google added more travel-like search features, including vacation rental sites.
The company believes its SEO results have been negatively affected by the launch of Google Travel and Google Vacation Rental ads, reducing the importance of its platform in organic search results for travel-related terms across Google.
Airbnb explains search engine optimization, or SEO, as the practice of customizing content to appear more prominently in search results without paying.
The company warns that persistent problems with search rankings may force it to spend more on marketing.
“We need to increase our paid marketing spend which increases the overall costs of customer acquisition and negatively impacts our business, transaction results and financial condition,” she said.
The company has seen net annual losses every year since its launch, and says it may not be able to achieve profitability.
The company went from a net loss of $ 70 million in 2017 to a net loss of $ 674.3 million in 2019, with revenues of $ 4.81 billion.
In the nine months ended September 30, it saw a net loss of $ 696.9 million from $ 2.52 billion in revenue.
So far in 2020 Airbnb has sold a total of $ 17.9 billion in bookings, down 39 percent from the previous year.
“Our revenue growth has slowed and we expect it to continue to do so in the future,” the company said.
Last quarter Airbnb generated $ 1.34 billion in revenue, down 19 percent from the $ 1.65 billion in revenue the previous quarter last year.