Airbnb, Inc. Q2 FY2021 Earnings Call

Good afternoon, and thank you for joining Airbnb's earnings conference call for the second quarter of 2021. As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of Airbnb's website following this call. I will now hand the call over to Ellie Mertz, VP of Finance. Please go ahead.

Good afternoon, and welcome to Airbnb's Second Quarter of 2021 Earnings Call. Thank you for joining us today. On the call today, we have Airbnb's Co-Founder and CEO, Brian Chesky, and our Chief Financial Officer, Dave Stephenson. Earlier today, we issued a shareholder letter with our financial results and commentary for our second quarter of 2021. These items were also posted on the Investor Relations section of Airbnb's website. During the call, we'll make brief opening remarks and then spend the remainder of time on Q&A. Before I turn it over to Brian, I'd like to remind everyone that we will be making forward-looking statements on this call that involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under forward-looking statements in our shareholder letter and in our most recent filings with the Securities and Exchange Commission. We urge you to consider these factors and remind you that we undertake no obligation to update the information contained on this call to reflect subsequent events or circumstances. You should be aware that these statements should be considered estimates only and are not a guarantee of future performance. Also during this call, we will discuss some non-GAAP financial measures. We provided reconciliations to the most directly comparable GAAP financial measures in the shareholder letter posted to our Investor Relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results. And with that, I will pass the call to Brian.

All right. Thank you, Ellie, and hey, everyone, thanks for joining us today. I'm dialing in from an Airbnb listing in Italy, and I'm very excited to share our Q2 results with you. Since the beginning of the year, we've been preparing for the travel rebound. After months of being stuck at home, millions of people have been yearning to travel, explore the world, and connect with others. And we anticipated a travel rebound unlike any other in history. And in Q1, we saw the start of this rebound. And now that Q2 is behind us, we can definitively say that the travel rebound is upon us, and Airbnb is leading the way. But as we predicted, travel is different than before. Airbnb has benefited from our adaptable business model, which is able to meet the changing needs of our guests. We haven't just been passively waiting for travel to return. For the past year, we've been relentlessly driving product innovations to meet this historic moment. And as a result, Airbnb has emerged from this crisis faster than others, and we're better positioned for the future of travel. Now while we recognize the persistence of COVID and the Delta variant, we expect Q3 to be our strongest revenue quarter ever. The fact that we expect Q3 revenue to be our highest revenue quarter ever speaks to the inherent resilience of our business. So now turning to our Q2 results. As vaccination rates increased and travel restrictions lifted in Q2, we saw consistent strength in North America, followed by significant recovery in Europe. One year ago in Q2, our business was significantly impacted by the onset of COVID. Now, like many others, our year-over-year comparison to 2020 does show a dramatic improvement. But what is most notable are our results relative to pre-COVID levels. Across all key metrics, we nearly met or exceeded our Q2 2019 performance. Q2 nights and experiences booked nearly tripled from a year ago. More importantly, Q2 nights and experiences booked nearly matched pre-COVID levels in 2019. Gross booking value of $13.4 billion more than quadrupled from a year ago and also shot up above 2019 levels by 37% based on the recovery of nights, combined with the strength of our ADR. Meanwhile, Q2 revenue of $1.335 billion also nearly quadrupled from a year ago, and it exceeded 2019 levels by 10%. What this demonstrates is an acceleration in our recovery from Q1. Our Q2 results not only demonstrate our leadership in the travel rebound, but also our continued operating discipline. Our adjusted EBITDA profit was $217 million. Now this represents a 16% EBITDA margin. This was more than $600 million of improvement in EBITDA from a year ago, and it represents 20% or 2,000 basis points margin expansion from 2019. And this is on a similar level of revenue. Now over the past year, as our top line recovered, we consistently focused on improving our profitability. For example, over the last four quarters, we've improved EBITDA margins on average more than 20% every quarter as compared to periods in 2019. Now that is a 2,000 basis point improvement on average every single quarter. And we've done this by improving our variable costs by driving up marketing efficiency and by very tightly managing our fixed costs. Now I'm really proud of these results. And what they demonstrate is that we are emerging from this crisis as a stronger and more efficient company. Now turning to business highlights and travel trends. Despite the continued impact of COVID around the world, we have seen clear evidence that travel is recovering. We're incredibly encouraged by what we've seen in Q2. And what we've seen is an accelerating pace of global travel, particularly in Europe, as well as continued popularity of nonurban and domestic destinations. In Q2, we had the highest number of gross nights booked of any quarter in our history. And we just had the biggest night on Airbnb since the pandemic began. Last Saturday night, more than 4 million guests from around the world were staying in an Airbnb. That is more people than the entire population of Los Angeles. And we're also seeing travelers once again cross borders and visit business cities. These two categories of travel have been historic strengths of Airbnb, and we're really excited to see them begin to recover. But at the same time, the way that people travel and live continues to change. We believe that many of the new booking trends that emerged over the past year are here to stay. People are traveling to many more destinations than before. And when they travel, they're staying longer. We believe these two categories of travel are indeed here to stay. As a result, what we focused on are product innovations that support these new ways that people travel. Many people now have greater freedom regarding where and when they travel, and we've improved our product to better meet their needs. Our new search products offer guests the flexibility they want when planning and booking trips. Finally, we're seeing more people around the world consider hosting. We ended Q2 with the largest number of active listings in Airbnb's history. There are a couple of reasons for this. First, our demand is driving supply. This is what's so powerful about our model. For example, in Q2, our highest supply growth was actually in high-demand destinations. Second, our marketing and product initiatives have been really accelerating to support host recruitment, and they're working. So now let me go into a little more detail on what we've been doing to prepare for and support this travel recovery. As a reminder, our single priority in 2021 has been to prepare for the travel rebound. To do this, we've been perfecting the end-to-end experience of our core service. This includes four themes: first, educating the world about hosting; second, recruiting more hosts; third, simplifying the guest journey; and finally, delivering world-class service. Let me just briefly give you an update on how we're executing on each of these four areas. First, we’re educating the world about what makes Airbnb different, and that is hosting. In Q1, we launched our first large-scale marketing campaign in five years, 'Made Possible by Hosts', and we expanded this campaign in Q2. We're educating guests about the benefits of being hosted, and we're also inspiring more people to become hosts. We continue to be really encouraged by the result of this campaign in terms of traffic, first-time bookers, interest in hosting and brand favorability. Second, we are recruiting more hosts, and we are setting them up for success. On May 24, just a few months ago, we launched a completely redesigned host onboarding flow that makes it simpler for anyone to start hosting. This new flow has made it faster to become a host, which has helped drive our listings growth in Q2. Third, we are simplifying every part of the guest experience. On May 24, we expanded the tools for guests to offer more flexibility when they're searching for a place to stay. We announced flexible dates, flexible destinations, and flexible matching. All three of these features are designed to support the new ways that guests are looking to plan and book trips. Finally, whenever our host or guests need us, we ensure that we deliver world-class service. Recently, we launched a redesigned Help Center. We've more than tripled our supported languages, and we've updated our safety resources. All of this is to ensure that we support our guests and hosts whenever they need us. To summarize, travel is recovering, and our Q2 results show that Airbnb is leading the way. For the past year, we've been preparing for this rebound. We've driven product innovation to support changes to the way people are traveling and living all over the world. As a result, we've emerged from this crisis faster than others and as a stronger, more efficient company. So with that, we look forward to answering your questions.

Your first question comes from Mark Mahaney with Evercore ISI.

Okay. You just talked about having this record day. I think you said last Saturday, and I think you're also maybe appropriately cautioning about third quarter trends and variants and Delta. So just kind of put those things together. A record day still sounds like things are good, but I'm sure there are some warnings out there. Can you be more specific about what you're seeing that's causing you to be just a little more cautious about Q3 and the back half of the year?

Yes, Mark, thank you for the question. Before I hand it over to Dave, let me just say that, yes, we had a record night. More than 4 million guests stayed with hosts all over the world, and we're really encouraged that this is the biggest night we've had since the pandemic began. The one other thing I'll just mention is that we have an incredibly adaptable model. So however travel changes, we'll be able to meet that demand. But Dave, why don't we talk about what we're seeing right now?

A lot of the trends we're seeing in Q2 are consistent with some of the trends we saw in Q1 and Q4. People continue to be flexible, which is why we built all these flexible tools. Approximately 40% of searchers are showing flexibility in either the date or location. People are traveling to more destinations and staying longer. One of the elements we are seeing is that long-term stays, which we highlighted as a key strength in Q1, stays of 28 days or longer, remain one of the largest and strongest growing parts of our business. That was 19% of our nights booked in Q2, following 24% in Q1, just as the mix of short-term stays strongly rebounded in Q2. We've observed a significant increase in month-over-month performance across Q2. The April to May to June nights booked were all strong, leading in anticipation of the summer peak travel. Now in July, we've seen some pullback in demand, but it's likely due to summer peak and possibly concerns related to the Delta variant. However, all of those lead to Q3 revenue, the nights people stay, and the revenue we recognize being the strongest ever. Concurrently, our profit in Q3 will also be the strongest ever.

Your next question comes from the line of Stephen Ju with Credit Suisse.

So Brian, as a follow-up to the product announcement that you had, I think this was late May when you hosted that session. It seems to me you're giving consumers broader recommendations. If this is really successful, hopefully, it's something they really didn't know they wanted. I know it's probably really early, but can you share what their response has been? Are they delighted with what you're showing them? Or do you still think you have some tinkering that you need to do?

Yes, Stephen, thanks. It's a great question. Let me preface this by saying that there has been a major paradigm shift in how people search for travel on the Internet. Before the pandemic, most people went to a travel website, typically an OTA, and they would type in a location and check-in and check-out dates. This was fixed search. People knew where they were going. With the pandemic, I think it's safe to say the world is never going back to the way it was, and that means travel isn't going back to the way it was. The way travel is evolving is that people, because they're able to work more remotely, are more flexible. About 40% of our guests have flexibility about where or when they travel. A great example of one of the things we've done is our flexible dates feature. This allows guests to tap 'I'm flexible' and say they’re looking for a place for a weekend, a week, or a month, anytime in the coming months. We have seen this flexible date feature used over 500 million times since its launch. We've also seen a significant uptick in the use of flexible destinations as well, where if guests are flexible about where they travel, we can recommend options. These features are crucial; they're not just part of a shift in travel searching but also allow us to point demand to where we have supply. Continued innovation remains our focus, and we have hundreds of millions of data points on features, so we are continually working to refine and enhance the user experience.

Next question comes from the line of Jed Kelly with Oppenheimer.

Great. Just on the work-from-anywhere trends you were mentioning, Brian, can you provide anything you're seeing in sort of the shoulder season that gives you confidence? Are you seeing any improvement there? And then on the yield management capabilities you're providing to hosts with the new tools, is any of that driving an ADR uplift?

Yes, Dave, would you like to take these questions?

Sure. I can start with the yield management. The majority of the ADR uplift we see is being driven by mix. It continues to be mix. The strength of our rebound has been in North America and Europe, which have higher ADRs. It's been in nonurban areas, which have higher ADRs than urban spots, and in larger whole homes. The majority of the ADR has been driven that way. A newer trend we observed in Q2 was some pricing pressure in peak markets that are highly constrained for the summer, but that was still a minority relative to the overall mix. Over time, our ADR on a revenue to gross booking value adjusted basis has been very consistent. We believe there are opportunities to increase our monetization through new services like test travel insurance or promoted listings, but we don't see those as immediate opportunities. Instead, we focus on the travel rebound and ensuring we address travelers' needs, which is additional flexibility. About 40% of our searches in Q2 featured flexible dates or destinations, which is why we built those tools

And I'll just add one more interesting fact. Not long ago, we did a contest online that allowed people to apply to live on Airbnb. To participate, they had to fill out an application, which took some time. We received 315,000 applications from people wanting to live on Airbnb. This illustrates that travel is permanently changing as it has opened up many new opportunities. Initially, longer stays haven't been a major part of our business. However, the flexibility now seems to be a permanent feature of travel, especially considering that remote work is also here to stay. Therefore, we are expecting to see an increase in long-term stays, which will help smooth out our seasonality for years to come.

Next question comes from the line of Naved Khan with Truist Securities.

So you guys mentioned some slowdown in the nights booked in the third quarter. Just wanted to get some color on how that looks like. Can you talk about July and how it compared to the second quarter? And how does this look across different regions? Is it more pronounced in the U.S. versus Europe? Or are they about the same?

Dave, do you want to take this one?

Sure. What we observed in Q2 was strong bookings growth in advance of the third quarter's pre-travel season. This pattern was similar to what we saw in the depths of COVID in 2020, where travelers wanted to get out of their homes, especially in summer. We saw peak travel demand coming in Q2. As we exit Q2 and enter Q3, we're facing a combination of fewer bookings for the fall due to seasonality and potential impacts related to COVID concerns going into early Q3. We're not seeing a substantial deceleration. We always indicated in our outlook that our nights and experiences booked for Q3 would be lower than in Q2, given the extraordinary strength we saw in Q2, but we remain very bullish on the business. As I mentioned earlier, the revenue we’ll achieve in Q3 will be the highest ever, and our profits will also be the highest ever. The business remains strong, and individuals want to travel.

Got it. And just a clarification on the slowdown with the Delta variant spreading, is it possible that with people becoming more cautious and wanting the option to cancel even last minute, could that shift some demand towards traditional hotel types, where you could cancel literally the day before?

Again, we feel that Airbnb's ability to provide the kinds of stays and experiences people desire worldwide remains incredibly strong. We've been the best way for people to travel and live through Airbnb throughout the pandemic. The tailwinds of flexibility, long stays, and how people are traveling for business in the future suggest that they will continue to travel with Airbnb for the long term. These travel trends directly support Airbnb's business strength.

Your next question comes from the line of Brian Fitzgerald with Wells Fargo.

We want to ask about the growth you're seeing in hosts, particularly in high-demand locations. Can you characterize the new hosts coming online, perhaps in terms of professionalization versus the rest of your base? How much of their calendar are they making available to you? Are these professionals, or are they individuals looking to do this seasonally or opportunistically? Just trying to get a feel for that.

Thank you, Brian, for the question. Dave, before I hand it over to you, let me recap a couple of high-level details about our host community. We have more than 4 million hosts, with 90% being individuals. Most of them couldn't have hosted without the tools we provide. In Q2, we saw the fastest listing growth where there was demand, as individual hosts tend to increase bookings via word of mouth. Additionally, flexible guests lead to more bookings of hosts due to the demand variability. On your specific question about the nature of new hosts in Q2 and whether they were individuals or professionals, Dave?

Yes, we continue to see that 90% of our hosts are individuals, and that trend remains. Our focus remains on individual hosts, providing tools and capabilities to help them succeed. Most of their listings are unique to Airbnb, consistent in Q2 as well, where our new hosts are largely individual. We are committed to building tools and capabilities to continue improving host onboarding.

Your next question comes from the line of Colin Sebastian with Baird.

Great. It's nice to see progress on listings growth. However, in terms of the trend in ADRs and the commentary in the letter, is the moderation there? Are you already seeing this in booking terms, or is this more of a seasonal trend you expect to happen as summer holidays give way to a different travel profile? Secondly, concerning EBITDA margins, should we consider the sustainability of those margins in the context of step function higher from this point? Or should we anticipate other investments in the quarters ahead that may moderate some of that near-term leverage?

Dave, would you like to address one of those?

Sure. The trend in ADR is mainly driven by mix. As other segments come back, particularly urban travel in Latin America and Asia, which tends to lower overall ADR rates, we will see moderation. The strength of North America and Europe should remain, while the mix of other business will impact the overall trend. For EBITDA margins, we are proud of the progress made. We've stated that achieving 30% or more EBITDA margins over time is possible. We have accelerated in our journey there. Much of this is due to our improvements in fixed and marketing costs as well as variable cost efficiency. While variations in EBITDA margins may occur over time, we have demonstrated our capability to expand them significantly. We believe we can reach that 30% margin or more going forward.

One thing I'd like to emphasize is the efficiency of our business. This pandemic was a crucible moment for the company. We've become significantly more disciplined and efficient. We've all seen incredible benefits and focus as we've put our best people on the most pressing challenges. Our margins have improved, and we can pivot quickly. This explains why we’ve been able to announce and launch over 100 upgrades since our IPO in time for the travel season. Expect continued acceleration in product innovation due to our discipline and focus. These lessons are indelibly marked for our company.

And your next question comes from the line of Justin Patterson with KeyBanc Capital Markets.

With flexible dates rolling out, how has the booking window changed? Are there more instances of last-minute stays now? Additionally, you've provided a lot more value to hosts this year. How are you thinking about the right time to consider increasing take rates?

Thank you for the question. Why don't I address the second question about take rates first, and then Dave can handle the booking window question. With regards to take rates, we want to ensure that we provide incrementally more value to hosts than what we charge. Our business model's strength will continue to grow so hosts feel they have the best opportunities. While it’s possible to increase take rates, we will primarily consider charging for incremental services. As host reliance grows on Airbnb, we’ll see more willingness to purchase new services. For now, we focus on this unprecedented travel rebound, simplifying guest experience, and onboarding more hosts in preparation for the travel season.

Regarding the booking window, what we saw in Q2 was actually a fairly stable booking window in line with our Q2 of 2019. It was slightly shorter than Q1 of this year, primarily due to seasonality. During the pandemic, we saw variations as people booked only when they felt confident. However, in Q2, our booking window was consistent with historic levels.

And your next question comes from the line of Justin Post with Bank of America Merrill Lynch.

You mentioned a lot of positive trends for the company. Any thoughts on the market opportunity or the total addressable market (TAM) for alternative accommodations versus hotels? Is that changing? Do you believe alternative accommodations are growing? Also, any updates on metrics like hosts or active listings?

Dave?

Regarding supply metrics, our main message remains that we do not need to grow supply on a one-to-one basis for revenue growth. We have millions of listings worldwide. Our objective is to have the right listing for the right guest at the right time. As the demand increases in specific areas, we excel at growing supply, and we have seen considerable growth in areas of high demand. We will discuss listings infrequently as it's not a routine measure or a primary driver of revenue growth. Regarding the TAM for alternatives versus hotels, Airbnb isn’t merely a travel company; we focus on providing stays of any kind. We're observing robust growth in stays of 28 days or longer. This is not comparable to hotel stays, which average one to two nights, while our average exceeds four nights. This demonstrates how we've captured share from conventional accommodations. The changes we've discussed on this call, along with increased flexibility in how people travel and live, expand the overall TAM we address. People staying longer and with more flexibility are likely to choose Airbnb over hotels.

I'd like to add, in addition to long-term stays, we have substantial dynamics occurring. People are traveling to more locations, sometimes to places that do not have hotels. This further expands our TAM. A shift from business to leisure travel means fewer hotel options and a greater desire for leisure travel. Millions are trying Airbnb for the first time, and the important part of growth is simply trying it. Retention has been strong, showing that Airbnb is truly a mainstay rather than an alternative. The term alternative accommodations might be outdated now; 10 years ago, the TAM was far smaller. Just imagine what it could be a decade from now as we add more travel categories and ensure more people know of this new way of traveling.

Your next question comes from the line of James Lee with Mizuho.

On the host acquisition side, you guys ramped up listings in the quarter. What other areas of host acquisition are you working to improve in the future? Additionally, in APAC, where you're more dependent on cross-border travel, are you making adjustments to shift your demand to these domestic stays?

I'll answer the first question on host acquisition, and Dave can address APAC. Regarding host acquisition, we've made significant progress. We've simplified the hosting process to 10 straightforward steps, cutting the listing time in half. This improvement significantly increases our conversion rate. We've also targeted our brand marketing campaign, 'Made Possible by Hosts', which has doubled traffic to our hosting page in the five countries where it's been implemented. We are ensuring that we offer support to anyone who has hosting questions through our host ambassador program, where experienced Superhosts assist newcomers. Through these measures, we continue to expand our host base effectively. Furthermore, as our guest base grows, prior guests also increase our host numbers; over 30% of our hosts were previously guests.

Regarding APAC, the domestic business has demonstrated remarkable resilience worldwide. We've observed strength in the domestic segment across all regions. The challenge remains that Asia and Latin America historically relied on outbound and international travel to recover. However, domestic business within those countries has been quite robust.

And your next question will come from the line of Brent Thill with Jefferies.

Could you talk a little about the situation in Europe, and any observations regarding cross-border travel?

In Europe, we've witnessed pent-up demand for travel, somewhat varying based on travel restrictions in each country. People displayed a higher willingness to book in Q2, especially for summer travel. We noted specific strength in Spain and France as they prepared for the summer season. I don't have much more to add regarding Europe than what we've included in our shareholder letter.

When you mentioned deceleration, did you find EMEA dropping off more or less than other regions? Was the deceleration consistent across regions?

The pullback we're witnessing is modest; I want to emphasize that. Q2 was exceptionally strong, as people readied for Q3 travel. Our Q3 stay rates remain robust, driving our record revenue and profits. We await further insights regarding how travel expectations will impact Q3 and the latter part of the year.

Your next question comes from the line of Mario Lu with Barclays.

On listings, you observed sequential growth this quarter. Can you elaborate on sources of new listing growth in the upcoming quarters? Are there urban and cross-border listings that may be reactivated due to resuming travel?

Dave?

We have 4 million hosts globally, with 90% being individuals. Most of these hosts possess their homes and continue to list them despite the transient effects of COVID. This resilience leads to stable listing growth. We take pride in seeing increases from Q1 to Q2 in high-demand areas. As travelers prepare to return to urban locations, our hosts will be ready to welcome them.

The key point is that as demand rises in markets, supplies in those same markets correspondingly increase.

A quick follow-up on the hosts campaign; you indicated early signs of success. Can you discuss how you're retaining existing hosts and preventing competitors from onboarding them?

Certainly. The majority of our hosts are individuals, and they want bookings to fill their calendars. We've succeeded in getting them enough bookings thus far. They also value the quality of guests on Airbnb. Since many hosts list their real homes, they seek assurance regarding their guests. We provide trust and safety features, and we also strive to deliver best-in-class customer service. One of our initiatives has been the dedicated Superhost line, which our Superhosts have requested. The reception to that initiative has been overwhelmingly positive. By investing in our Superhosts, we aim to prevent them from listing elsewhere.

The Superhost program serves as a loyalty initiative for hosts. We continue to invest heavily in it. We have over 800,000 Superhosts globally, which is critical. Notably, host churn has decreased compared to pre-COVID levels. It's lower in 2020 than in 2019 and lower in 2021 than in 2020, indicating a positive trend overall.

Your next question comes from the line of Kevin Kopelman with Cowen and Company.

Could you provide an update on where your revenue take rate is today as a percentage of GPV? Given the timing differences, it’s challenging to ascertain that externally.

Our take rate has been very consistent. When we time-adjust our revenue to gross booking value, the take rate is approximately 15%, and it has remained stable.

Your next question is from the line of Deepak Mathivanan with Wolfe.

How do you assess travel demand trends? Understanding COVID uncertainty near term, do you view the sustained benefit of pent-up travel demand as likely? Will this incremental benefit sustain into the second half and 2022?

Thank you, Deepak. It's a great question. I can address this at a high level, and Dave can chime in. The pandemic taught us several lessons. A key realization might be that we appreciate things more when they’re taken away. While not everything people experienced during the pandemic built appreciation, travel is something that people deeply missed. Surveys indicated that travel was the out-of-home activity people missed most, even more than dining and events. We believe that we have not fully tapped into pent-up demand as not everyone has had the opportunity to travel yet. Before the pandemic, roughly 50% of our business came from cross-border and urban travel. There hasn’t yet been significant recovery in cross-border travel, but that could change in the next year. We're optimistic about cross-border travel's future as conditions improve and people feel more comfortable crossing borders with newfound flexibility. Thus, there's heightened optimism for travel in the coming years. While some pre-existing trends may not revert to pre-pandemic levels, travel will undoubtedly recover and likely be larger than before. Dave, do you want to add anything?

I would only note that we are not merely a travel company; we focus on any kind of stay. We’ve emphasized the importance of 28-day and longer stays along with flexibility during travel. People are yearning to travel, but new tailwinds will further bolster our business over the long term.

And your final question comes from the line of Rob Sanderson with Loop Capital.

This year, your focus has been clear, centered on recovery. As we transition into this new normal after two years of priority shifts, what main focus areas do you anticipate for the future? Experiences were significantly affected, but what are your key areas going forward?

It's a great question, Rob. I think there are four key points. First, this travel recovery has shown that our core business opportunity is perhaps greater than anyone ever imagined pre-pandemic. More people are traveling to diverse locations, many without hotels. As cross-border and urban travel recover, we expect significant strength in our core. Second, long-term stays present a substantial opportunity, representing an entirely new category of travel that didn’t materialize during our early years. The blending of travel and living also represents a major shift. Third, you've mentioned experiences; we initially foresaw last year as a breakout year, but that didn’t materialize. However, we're confident that demand for authentic experiences will rise as people seek meaningful connections. Lastly, there's immense potential for unlocking more hosts. We can leverage this opportunity to support those impacted by the pandemic; 55% of our hosts are women, who have been disproportionately affected. Therefore, we'll focus on unlocking host recruitment and continuing to inspire creativity among our community. We've always directed our focus here, but we feel rejuvenated and optimistic about this core mission as we navigate this new chapter. We've been in business for 13 years, and I often remind myself that we're not raising a 13-year-old to be a great 14-year-old. We're raising them to become a well-rounded adult, and we have many opportunities to explore in the years ahead. Thank you all for joining us today. I just want to reiterate my pride in our recent results. They demonstrate that our model is inherently adaptable and that we can respond to changing guest use cases. We are committed to innovation, and these two aspects have proven that, despite the challenges of the pandemic, we are stronger, more efficient, and ever prepared for what's ahead in travel and living. Thank you all for attending; we’ll speak to you next quarter.

This concludes today's conference call. Thank you for participating. You may now disconnect.