Representatives of Airbnb in recent months told potential investors the startup expects to make $850 million in revenue this year, according to people who viewed the projections. That would be more than triple the recorded revenue of $250 million in 2013. The company’s revenue is then expected to grow to $10 billion in 2020, said the people who viewed the projections.

The forecasts also show Airbnb’s business becoming profitable, reaching nearly $3 billion of earnings before interest, taxes, depreciation and amortization in 2020, according to these people. For the moment the company is burning cash to expand, and forecasts an operating loss of about $150 million this year.

Within the next two weeks, Airbnb expects to close a $1 billion funding round at a $24 billion valuation, according to people familiar with the matter. It isn’t clear which investors are taking part in the newest round.

To meet its lofty revenue targets, Airbnb would need to increase its share of the global lodging market from 1% to as much as 10% over the next five years, according to Douglas Quinby, an analyst with research firm Phocuswright.

http://www.wsj.com/articles/the-secret-math-of-airbnbs-24-billion-valuation-1434568517/