Airbnb Burned Through $1.2 Billion as IPO Loomed

Airbnb burned through more than $1.2 billion in cash between mid-2019 and mid-2020, according to previously undisclosed figures, as the plunge in global travel earlier this year eroded a balance sheet already weakened by big increases in spending on hiring and marketing.

The cash drain wiped away more than a third of what the company had on hand as of March 2019, financial documents seen by The Information show. The biggest portion of the cash burn came in the first quarter of this year, when the company had to dole out travel refunds as Covid-19 broke out, underscoring how the pandemic depleted Airbnb’s reserves. The documents provide the fullest picture to date of Airbnb’s financial situation ahead of its initial public offering planned for later this fall.