Adobe and Airbnb

Yesterday, I stumbled onto this time-series chart of Adobe and Airbnb’s EV to LTM Gross Profit (GP) multiple. I thought it was quite interesting that they trade at almost the same LTM EV/GP multiple.

While Adobe consistently grew gross profit at low double digit rate, Airbnb used to grow at a much higher rate post-pandemic, but now largely converged to Adobe’s growth profile in the last few quarters.

I posed a question to my X (formerly twitter) followers: In 5-10 years from now, which company will have higher maintenance opex as a percentage of their core revenue? Interestingly, more people thought it was Adobe which will have higher maintenance opex as percentage of their core revenue!

I will elaborate how I myself think about this question behind the paywall.

In addition to “Daily Dose” (yes, DAILY) like this, MBI Deep Dives publishes one Deep Dive on a publicly listed company every month. You can find all the 65 Deep Dives here.