On August 19 local time, airbnb, a global short rent platform, said it had secretly submitted an IPO application to the US Securities and Exchange Commission (SEC). As early as last year, airbnb has made it clear that it plans to go public in 2020. However, due to the new outbreak, the accommodation industry in which airbnb is located has suffered a great shock. Compared with a valuation of $31 billion in 2017, airbnb’s valuation in April this year has slipped to $18 billion. In this context, airbnb is still determined to promote the listing this year, which is somewhat surprising. < / P > < p > like many previous star Unicorn companies, airbnb chose to submit its IPO documents in secret. This is a flexible option for small companies in the jobs act, enacted by the Obama administration in 2012. < / P > < p > the Act provides that companies with annual revenues of less than $1 billion can file listing documents with the SEC in secret. In 2017, in order to boost the IPO market in the United States, the option of secret submission was relaxed to all companies to be listed. In other words, any enterprise preparing to be listed on the US stock market can submit an IPO application in secret; until 15 days before the roadshow, the company does not need to disclose its own prospectus, including financial data, the number of shares to be issued, risk factors and other core information. < / P > < p > since the policy was released, well-known companies, including Uber, LYFT, slack and twitter, have chosen to submit IPO applications in secret. For this kind of start-up technology companies, the company’s business and financial data are extremely important. A period of confidentiality is conducive to help the company better preserve and develop its core competitiveness. < / P > < p > one of the main advantages of enterprises in choosing secret IPO is that they can determine the listing time more flexibly, leave less time for the public to examine the company’s materials in detail, and protect their core business information to a greater extent. If there is any mistake in the process of preparing for listing, the enterprise can choose to postpone or cancel the IPO plan, and avoid the disclosure of company secrets. Generally speaking, secret IPO gives more flexibility and initiative to the listed companies. Even if companies want to disclose information earlier for the purpose of “building momentum” for IPO, they can publish information on their own, rather than through the channel of the sec. This is why more and more companies have chosen this approach since the implementation of the policy. < / P > < p > in February this year, doordash, a takeaway platform, also submitted an application for listing in secret, but no official listing news has been heard so far. Therefore, although airbnb submitted its listing application today, it does not mean that the company will definitely land on the public market within this year. However, considering that airbnb has repeatedly stated its determination to seek listing this year, many employees whose stock options are about to expire are urging the company to go public. Therefore, the possibility of airbnb going public this year is still relatively high. < / P > < p > at present, it seems that airbnb has basically made the listing decision. Next, people from all walks of life are more concerned about how much valuation airbnb can get in the open market as the only star Unicorn left? < p > < p > in 2018, the stock prices of Uber and LYFT were flat after listing, and then Wework experienced an earth shaking reversal. After that, the valuation of Wework fell by 90% and finally failed to go public. The sharing economy began to be widely questioned. Investors in the secondary market were worried about the sustainability of this business model. Companies with poor profit prospects and money burning crazily were gradually left out, and airbnb was inevitably affected. < p > < p > this year’s airbnb has been hit hard by the new crown epidemic. Brian Chesky, airbnb’s CEO, had previously told employees that he expected the company’s revenue in 2020 to be less than half of that in 2019. The IPO market in the U.S. stock market has been stagnant for a time, and airbnb has shelved its listing plan. According to foreign media reports, airbnb’s revenue fell sharply in the second quarter and its losses continued to expand. In the second quarter ending June 30, airbnb’s revenue was $335 million, down 67% from more than $1 billion in the same period last year, and a significant decrease from $842 million in the first quarter. The second quarter recorded a loss before tax, depreciation and amortization (EBITDA) of $400 million, much higher than the loss of $292 million in the same period of last year, and higher than the loss of $341 million in the first quarter. As a result, the company’s valuation has been greatly reduced. In 2017, the valuation of airbnb once reached a high of $31 billion, and when it raised funds in April this year, it had fallen to about $18 billion. It can be imagined that the performance of airbnb in the third quarter will significantly affect the listing schedule of the company and will largely determine the final valuation of the company. However, at least in today’s view, the external market environment that airbnb is facing is more favorable. Both the S & P 500 index and the NASDAQ index have reached record highs this week, and the IPO market has recovered rapidly since the market rebound, which is setting off a new round of listing boom. < / P > < p > since the outbreak of the epidemic, the total emergency loans of airbnb totaled US $2 billion. The financing costs of the two loans are not low, which can be seen from the urgent financing pressure. < p > < p > investment bankers in New York said that although the secondary market may have doubts about the business model of airbnb and the prospect of the global hotel and accommodation industry is still dim, no matter what the valuation is, airbnb can at least rely on IPO to get enough funds to support the operation of the platform. < / P > < p > like other unicorns of the sharing economy, airbnb has been facing a long-term profit problem. In the fourth quarter of 2019, the company’s EBITDA loss reached $276 million, much higher than the loss scale of $143 million in the same period of 2018. Before the outbreak, airbnb’s operating expenses for the first quarter ended March 31 were 569 million US dollars, up from US $314 million in the same period last year, according to Bloomberg. < / P > < p > this year’s new crown pandemic makes the short-term profitability of airbnb even less likely. Since the outbreak of the new crown epidemic in the world, airbnb has updated its rules to allow users who book before March 14 to cancel their orders for free. Naturally, the platform suffered losses and aroused widespread dissatisfaction from landlords. CEO Chesky had to apologize and communicate. < p > < p > under the unprecedented difficulties, airbnb has to think of all ways to reduce the cost. In May, airbnb announced a quarter of its job cuts in the spring, about 1900. Prior to that, airbnb had cut $800 million in marketing expenses, halved executive pay and bonuses for six months, and terminated contracts with 490 full-time freelancers. < p > < p > in terms of open source, airbnb can only hope for the rapid recovery of the U.S. and even the global tourism market. At present, the situation is not optimistic. < p > < p > since June, the U.S. tourism industry and the business of airbnb have recovered to a certain extent. According to the data of airdna, in June and July, the bookings of airbnb in the United States increased compared with the same period last year, but the global bookings were still declining. However, with the second outbreak of the new crown epidemic in the United States, the process of economic restart in various states is hindered, and the prospect of the epidemic is highly uncertain after the next autumn and winter. How much of the rebound of airbnb’s business in the third quarter is still uncertain. < / P > < p > another open source way of airbnb is to replace it with online form after canceling the offline experience project in most countries and regions. For example, the newly launched musical project gathers a series of artists from New York Broadway and the west end of London, and users can choose different types of courses, such as dance, fitness and performance. Take the course of musical actor tituss Burgess, for example, and a video sharing session for 10 people costs $136. < / P > < p > considering the change of people’s travel habits, airbnb has also made adjustments in the interface, and has begun to emphasize new ways such as short distance travel and longer travel (such as monthly rent). As for the ultimate effect, people still need to wait for the disclosure of the pre IPO prospectus to get the answer. What is expected is that the new outbreak has dealt a huge blow to the tourism and hotel industry in the United States. Hotel chains and airbnb are in a tough situation. < / P > < p > according to the American Hotel Association (AHLA), since mid February, U.S. Hotel Booking revenue has lost more than $46 billion. In May, the profit of the U.S. hotel industry fell by 105% year-on-year. As of July 30, more than half of the hotel rooms in the United States were idle. David Kong, CEO of Best Western, said the impact of the new outbreak was 10 times more severe than that of 9 / 11. < / P > < p > the association predicts that this year’s hotel occupancy rate will be the worst on record, and hotel occupancy and revenue will not return to the level of 2019 until at least 2022. < / P > < p > hotels and airbnb are facing unprecedented bleak industry prospects. 7. August was originally the peak season for American leisure tourism. Compared with spring, people’s travel situation has recovered, but it is still low. The following autumn is usually the peak season for business meetings. Nowadays, under the epidemic situation, large-scale activities have been basically cancelled. Winter is the off-season for leisure and business travel.
novel coronavirus pneumonia has been launched by chain hotels and Airbnb. However, David Kong questioned the cleanliness standards of airbnb. He believed that the chain hotels could implement a unified sanitation and cleanliness standard, while the housing supply of airbnb was managed by each landlord independently, so it was difficult to guarantee the high sanitary quality of each room. < / P > < p > in addition to the health problems that we are concerned about, all Dalian lock hotel groups have recently launched attractive promotional activities, which have started a “price war”, and the revenue and profits of airbnb are likely to be further compressed. Compared with the International Hotel giants with abundant funds, airbnb, which has been losing money for years, is facing unprecedented financial pressure. Listing doesn’t mean making a successful choice, but today’s airbnb may have no other choice.