Airbnb reported a nearly 11% increase in nights and experiences reserved in the Q2 of this year, which fell short of what analysts anticipated. Additionally, the company brought Rooms onboard as a more budget-friendly option when it comes to renting a bedroom.
Airbnb's stocks slumped as much as 6% after the market closed on Thursday due to its second quarter report containing fewer nights and experiences bookings than the number estimated by analysts. Despite this, the company's revenue rose 18% year-over-year to reach $2.48 billion, outpacing the $2.42 billion forecast. Net income was also higher, reaching a figure of $650 million, compared to $379 million recorded in the corresponding quarter of last year.
The total gross booking value of the quarter stood at $19.1 billion, a 12% year-over-year increment with 115.1 million nights and experiences booked, representing a rise of 11%. Although this number was above the StreetAccount consensus of $18.99 billion, it failed to hit the expected 117.6 million projected.
The company highlighted in its letter to investors that it experienced an increase in nights and experiences booked year-on-year from April's 10% to 15% in June. This was particularly evident in the North American market with a recovery in the EMEA in June due to a collision of holiday periods in May. Gross booking value per night was 1% higher than the previous year at $166.01.
Airbnb are positive that there are numerous possibilities for boosting their revenue growth from services that hotels and resorts offer to introducing an advertising platform and connecting hosts who lack the time to host with people who possess the necessary homes. The CEO, Brian Chesky, discussed the potential of OpenAI's GPT-4 large language model to further enhance the company's customer service efficiency. He also mentioned the initiative of 'Rooms', with $67 average nightly rent, during the quarter.
In spite of the post-hours fall in their shares, Airbnb's stock has still seen an overall increase of 64% so far in 2020, outperforming the S&P 500 index which rose 17% during the same period. The company is expecting third-quarter revenue to grow by 14-18% between $3.3-3.4 billion, in contrast to $3.22 billion predicted by Refinitiv. It has also forecast a modest sequential acceleration in nights and experiences booked.
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