Recently listed on the stock market, DoorDash and Airbnb suffer heavy losses in 2020

Spread the love

DoorDash and Airbnb released their first financial results on Thursday after going public in December, showing net losses for both.

Neither of them managed to break even in 2020. Airbnb lost 4.6 billion dollars (3.8 billion euros) in all – of which 3.9 billion (3.2 billion euros) in the fourth quarter – compared to 674 million (554.6 million euros) last year. DoorDash limited its annual losses to 461 million (379.3 million euros), down from 667 million (548.9 million euros) in 2019. But in the last quarter of 2020, its losses more than doubled to 312 million (256.7 million euros).

The two unicorns had made a smashing debut on Wall Street in the same week in December. The costs associated with these IPOs have also weighed on their results.

DoorDash’s activity accelerated during the pandemic

On the other hand, their turnover has evolved in opposite directions. Indeed, one, delivery of meals and home groceries, is among the winners of the pandemic, the other, a tourist accommodation reservation platform, among the losers.

To read: Delivery guy DoorDash storms into Wall Street

DoorDash, whose activity jumped with the containment measures and the closures of restaurant rooms, saw its turnover multiplied by more than three, both over the year (2.9 billion dollars or 2.4 billion euros, + 227.7%) than in the fourth quarter ($ 970 million or 798.2 million euros, + 225.5%), even affording the luxury of slightly exceeding the expectations of the market. The San Francisco-based company, however, drank the cup on the New York Stock Exchange. Its title lost about 12% in electronic trading after the close of Wall Street.

Encouraging prospects for Airbnb

Airbnb, which suffered from the sharp slowdown in tourism and business travel, saw its revenues plunge by 30% in 2020 to 3.4 billion dollars (2.8 billion euros), and 22% in fourth quarter, at $ 859 million (€ 706.9 million). But its Airbnb share was in the green Thursday night, driven by a brighter future: it gleaned 0.24%.

Read more: Airbnb, a success on Wall Street despite the covid

Because the gradual resumption of tourism that is looming, as the population is vaccinated, offers Airbnb positive prospects, while the reopening of restaurants is not good news for DoorDash.

“In 2021, we are preparing for the resumption of travel. As the vaccine is rolled out and restrictions lifted, we expect there will be a significant rebound in travel. Our only priority in 2021 is to prepare (for it), ”commented the accommodation reservation platform in a press release.