Bilbo, Gandalf and the dwarves were surrounded by the wargs (wolves) and the goblins who were going to set the trees ablaze. Out of no where, the eagles and their lord came to the rescue and saved them, Bilbo had grabbed a dwarves leg just in time or else he would have been left behind.
Gandalf has Bilbo and the dwarves to a friend of his cousin, Beorn the skin changer. There they told him all about the adventure and about the goblins and wargs even including the encounter with the eagles. Beorn gave the group food and shelter for a time.
At the entrance of the Mirkwook forest, Gandalf departed from the squad and left them to journey through it their selves with out his assistance. There the dwarves had to be rescued by Bilbo from giant spiders and the Wood elves.
Bilbo, with the help of his invisibility ring, enters Smaug's den to look for a weakpoint in order for the wretched beast to meet his demise. Bilbo had grown more clever and mature and knew how to speak to a dragon with out infuriating it. There he had found a gap in the dragons armor that later had an arrow shot through it and killed Smaug.
After the Battle of the Five Armies, Bilbo get escorted home by the Gandalf and Beorn. He got his share of the treasure and was happy to be going home after weeping from the death of Thorin.
Bilbo is happy to be home after his year long journey. Even if he came home to his neighborhood assuming he was dead, actioning his stuff off, and losing respect and being known as strange. Bilbo had matured more and didn't care about their opinions, as he had respect from the dwarves, elves, and men due to his courageousness and being really resourceful.