Airbnb’s operating loss more than doubled in the first quarter to $306 million from the year-earlier period, previously undisclosed financial data shows, a result in part of a sharply increased investment in marketing. While that spending could bring in a lot of new business, prospective investors could be unnerved if subsequent quarters show similar losses. That could pose an issue for Airbnb, which is preparing to go public sometime next year.
Airbnb boosted investment into sales and marketing to $367 million in the first three months of this year, a 58% increase from the same period last year, according to figures viewed by The Information. The spending increase was bigger than for any other category, such as product development, which grew by 51%. Operations and support, which includes customer service, climbed 30%.