Airbnb posted a net loss of $322 million for the first nine months of 2019
Airbnb posted a net loss of $322 million for the first nine months of 2019, the Wall Street Journal reported, which may be a troubling sign for the home-sharing startup as it readies its highly anticipated IPO. Citing people close to the company, the WSJ reported rising costs were responsible for the net loss.
The company is spending more than $100 million per year to upgrade its technology and administrative costs, such as legal, accounting and human resources.
The Information also reported last year that Airbnb boosted spending on marketing during the first quarter of 2019, more than doubling its operating loss to $306 million. The firm’s board of directors questioned executives in recent weeks about rising costs, the WSJ reported. Airbnb is one of the most valuable startups in the U.S., with its last funding round in September 2017 bringing in $1 billion, according to Pitchbook, valuing the company at $31 billion.