Airbnb announced their third-quarter earnings figures after the stock market closed, outperforming analyst projections in revenue but not meeting the predicted outlook for the upcoming fourth quarter. For the third quarter, they recorded 113.2 million nights and experiences, exceeding the survey results given by analysts.
Shares of Airbnb dropped by approximately 3% in after-hours trading Wednesday following the issuance of its financial report. Despite the fact that currency tailwinds had generated revenue that exceeded projections, the company's guidance for the upcoming quarter was seen as weaker than expected. Despite this, the company announced net income of $4.37 billion (which included a one-time tax benefit) and reported year-over-year revenue growth of 18%. They also reported an increase in total nights and experiences bookings of 113.2 million, outperforming the StreetAccount consensus estimate of 112.9 million. Although Airbnb provided low-end guidance of $2.13 billion to $2.17 billion in fourth-quarter revenue representing year-over-year growth up to 14%, this was still below the $2.18 billion forecasted by LSEG. In light of various economic and geopolitical factors, the CEO and co-founder Brian Chesky stated that despite a conflict with New York City, the company has been able to maintain positive relationships with other municipalities. In addition, Airbnb reported adjusted EBITDA of $1.83 billion (representing 26% growth year-over-year) and free cash flow of $1.31 billion (an increase of 37% compared to the prior year period). To address the rising price of bookings, the company said the average nightly price of one-bedroom listings in September was only 1% higher than the year before. Furthermore, they have also taken steps to strengthen list verifications in five countries, including the United States.
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