Airbnb's logo on the Pyramid of the Louvre museum in Paris, France. Picture: REUTERS/Charles Platiau
Airbnb's logo on the Pyramid of the Louvre museum in Paris, France. Picture: REUTERS/Charles Platiau

New York — Accommodation-booking platform Airbnb said it plans to list on stock exchanges in 2020, making it one of the most high-profile market debuts next year.

In a short statement posted on its website on Thursday, Airbnb, which is widely expected to list through a direct listing, did not give any details about how it plans to list its shares.

On Wednesday, Airbnb said that it took in more than $1bn in revenue for the second quarter of 2019. 

This year marked the debuts of several high-profile IPOs including Uber and Lyft, but the companies have fared poorly after their launch, amid investor skepticism over their lack of a concrete plan to profitability.

WeWork owner The We Company has also postponed its initial public offering, walking away from preparations to launch it this month after a lackluster response from investors.

“I think it’ll be a whole different reception for Airbnb, assuming that they can show they’re a profitable business without having to lose money on marketing,” said Kathleen Smith, principal at Renaissance Capital, a provider of institutional research and IPO ETFs.

Airbnb has not given any details on whether it was profitable in the second quarter of 2019 but has previously said that its earnings before interest, taxes, depreciation, and amortisation were positive for 2017 and 2018. On Wednesday, the company said it raked in more than $1bn in revenue for the second quarter.

The recent lacklustre stock-market debuts of richly venture-funded startups have prompted experts to point out that investors’ patience with deeply unprofitable internet ventures may be wearing thin.

Reuters