IPO Watch: Chesky Says Recovery is Exceeding 'Everything We Expected'
It’s been a roller coaster year for Airbnb, which started 2020 at the top of everyone’s list of potential IPOs, then got hit by the pandemic and lost a billion dollars in bookings.
“I was reading stories questioning: would Airbnb even exist?” CEO Brian Chesky told Ellen McGirt and me in this week's episode of Leadership Next, our podcast about the changing rules of business leadership. “It took me 12 years – me and my partners – to build this business, and we lost most of it in four or five weeks.”
But in the last few weeks, Chesky has been surprised yet again. “We were expecting this storm to go on for years. And something remarkable started happening. At the end of March and early June, we did more business in the United States than at this time last year… [People] don’t want to get on planes, they don’t want to cross borders, they don’t want to travel on business, they don’t really want to go to cities…What they want to do is get in a car and travel up to 300 miles…People want to get out of the house, they do want to travel…That’s what we started Airbnb for.”
We invited Chesky on the podcast because, in my experience, he has proven to be one of the most thoughtful of the new, unicorn-founding breed of CEOs in thinking about leadership. And as expected, he delivered. An excerpt:
“I think what ends up happening with companies is they usually just serve one stakeholder – shareholders; they look at only certain types of metrics –financial metrics; they look at them over a short period of time – quarterly; and so human beings get reduced to numbers on a spreadsheet. What business needs a little more of now is a little more love and a little more humanity. Why are board meetings dominated only with financials when CEOs need to be thinking about a lot more than financials?”
Of course, we also asked Chesky about whether the IPO might now be revived. “At this point I can tell you that we’re not committing to go public this year, but we are absolutely not ruling it out,” he says. “And every week, every month that the recovery is stronger, the market’s more stable, we gain more optionality…So it’s really a matter of, when is the world ready for us?"
Since taping this interview, I've talked to three different friends who have booked summer rentals through Airbnb - two of them for the first time. I'm curious: Has the pandemic changed your view of the online booking service?
Author of "The Dictatorship of Woke Capital: How Political Correctness Captured Big Business," Encounter Books, Feb. 2021 Vice President, Publisher, Editor, Analyst, Managing Partner at The Political Forum
4 年A comment others have highlighted: "I think what ends up happening with companies is they usually just serve one stakeholder – shareholders; they look at only certain types of metrics –financial metrics; they look at them over a short period of time – quarterly; and so human beings get reduced to numbers on a spreadsheet. What business needs a little more of now is a little more love and a little more humanity. Why are board meetings dominated only with financials when CEOs need to be thinking about a lot more than financials?” There's a lot packed into that one quote, and much of it is completely nonsensical. Companies that serve only shareholders aren't companies for long. Moreover, if your board only wants to discuss short-term financials and reduces people to numbers on a spreadsheet, then nominate better directors. "Stakeholder" focus is one thing. Patting oneself on the back for being a better person/CEO/manager than a strawman is something else altogether.
Editor in Chief, Design Observer
4 年So, I can't recommend this podcast enough, but this particular episode really got me thinking. We broke a little news - innovation has soared at Airbnb, and those one-tank-of-gas local getaways have helped the company recover enough to be back on track to IPO. But what we learned about drag queens in Portugal...now that's news we can all use! Please listen and subscribe!
Founder/CEO of Small Business Edge, Bricks or Sticks, Brian Moran & Associates. The Twin Keys to the Universe? That's easy - Love & Trust.
4 年Love your newsletter and podcast Alan. To answer your question, all of my business trips have been canceled from mid-March hrough Labor Day (12-15). However, I am planning a trip with my two sons to check some items off our U.S. bucket list - Mt Rushmore, Yellowstone, Mt Glacier Park, and Jackson Hole. We have a 2 week trip planned in mid July but I am not considering Airbnb, only hotels or staying with friends (and I used Airbnb quit a bit in the last 2-3 years). Keep up the great work! We have added your podcast to our road trip playlist.
Marketing + Media Leader
4 年An inspiring discussion. I was really moved by his conviction -and results - that finding opportunity in the face of crisis can lead to meaningful business transformation. And yes, I am one of the first-time Airbnb'ers giving it a shot this summer. I'll let you know how it goes!