On Wednesday, Airbnb revealed a surge in quarterly earnings but projected that its revenue for the upcoming quarter would fall short of market expectations, resulting in an 8% drop in stock price post-market.
During the first quarter, travel companies experienced a boost in earnings, primarily driven by increased travel demands in regions outside North America, particularly in Asia-Pacific and Latin America. For the first quarter, Airbnb saw its revenue climb 18% from the previous year, reaching $2.14 billion. However, for the upcoming quarter, the company anticipates revenue to be in the range of $2.68 billion to $2.74 billion, which is slightly below the $2.74 billion forecast by analysts.
Airbnb attributed the revenue difference between forecasts and actual results to fluctuations in foreign exchange rates and the timing of the Easter holiday. The Easter holiday contributed positively to the first quarter’s performance as travel activity increased, but it is expected to have a reverse effect on the second quarter’s bookings, according to Airbnb.
Despite the anticipated dip in revenue for the second quarter, Airbnb’s first-quarter earnings still outperformed analysts’ expectations. The company reported a net income of $264 million, or 41 cents per share, for the quarter ending in March, surpassing the analyst expectation of 24 cents per share as reported by LSEG.
The number of nights and experiences booked during the first quarter rose by 9.5% from the previous year to approximately $133 million. This increase was fueled by a significant growth in bookings from the Asia-Pacific and Latin America regions, which saw increases of 21% and 19%, respectively. Meanwhile, bookings in North America showed a slight deceleration.
Airbnb’s average price per night, or the average daily rate, was $173 during the quarter, marking a 3% increase from the previous year. The company noted a rise in shorter stays and the booking of entire homes, which contributed to the growth in profit margins.
The platform’s active listings increased by 17% year-over-year, with significant growth in Asia and Latin America. Looking forward to the summer, Airbnb expects to see an acceleration in revenue growth in the third quarter, partly due to anticipated travel surrounding international events such as the Olympics and Euro Cup.
