Airbnb and DoorDash went public at the same time but see very different paths after the pandemic

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In a letter to investors, Airbnb said it was “bracing for a rebound in travel” in 2021 after seeing bookings through its platform drop 41% in 2020, with people largely staying at home due to of the pandemic.

“As the vaccine is rolled out and restrictions lifted, we expect there will be a significant rebound in travel,” the company wrote in the letter.

DoorDash, on the other hand, profited greatly from orders for food and essentials while staying at home, with revenue of $ 2.89 billion last year, more than tripling from the last year. “While the Covid-19 pandemic was a positive wind for all online commerce in 2020, we are proud of the outsized gains we have made relative to our category peers,” the company said in its letter to investors.
Airbnb has just debuted on Wall Street. Now it's worth more than Marriott and Hilton combined

But there are reasons to be concerned. While the company said it hopes “markets will start opening up soon,” it also hinted at a negative impact on its business. DoorDash said this return to normal could result in “lower consumer engagement and average order values, although the precise amount remains uncertain.”

While Airbnb shares were essentially flat after trading hours Thursday after the earnings report, DoorDash stock fell more than 11%. Both companies remain well above their IPO prices.

For now, the two companies continue to face challenges.

Despite strong revenue growth in the fourth quarter, DoorDash’s losses also increased. It lost $ 312 million in the quarter, compared to $ 134 million in the same period a year earlier. The company made its first profit – $ 23 million – in the second quarter of 2020, before again reporting losses in the third quarter.

Airbnb, meanwhile, posted a staggering loss of $ 3.9 billion in the fourth quarter, including $ 2.8 billion related to stock-based compensation. The company said it lost $ 4.6 billion in 2020.

In its earnings report, Airbnb focused on the fact that its revenue for the fourth quarter was down “by just 22% year-over-year, demonstrating Airbnb’s resilience.” It generated revenue of $ 859 million in the fourth quarter, despite the surge in coronavirus cases.

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