Airbnb stock falls sharply on cautious forecast; Record bookings miss ratings

Last updated: May 9, 2023 at 4:17 pm ET

Originally published: May 9, 2023 at 4:10 pm ET

Airbnb Inc. Nights booked in the U.S. hit a record high in the first quarter as more guests returned to cities overseas, leading to the company’s first profitable start, executives announced Tuesday.

But executives’ forecast was less bullish, saying they expected a strong summer travel season and second-quarter revenue growth. They warned that growth in nights and booked experiences would be “unfavorable” compared to last year’s quarter, as demand for travel increased.

Airbnb Inc. Nights booked in the U.S. hit a record high in the first quarter as more guests returned to cities overseas, leading to the company’s first profitable start, executives announced Tuesday.

But executives’ forecast was less bullish, saying they expected a strong summer travel season and second-quarter revenue growth. They warned that growth in nights and booked experiences would be “unfavorable” compared to the year-ago quarter as fears of the Covid-19 omicron strain eased and travel demand picked up.

Airbnb

APNB

After rising 1% to close at $127.07 in the regular session, shares fell as much as 10% after hours.

The alternative-accommodation booking company reported 121.1 million nights and experiences, the highest number ever for a quarter, though it was lower than the 121.6 million nights expected by analysts polled by FactSet. Gross booking value, or GBV, totaled $20.4 billion, more than analysts had expected of $20.1 billion. Average daily rates were $168.43 compared to $164.80 expected by analysts.

“We are now double what we were before the pandemic – both in terms of GPV and revenue – and with higher profitability and liquidity,” the company’s executives said in a letter to shareholders. Free cash flow rose 32% year over year to $1.6 billion.

See also  Sources - Los Angeles Rams lock up QB Matthew Stafford with $ 160M extension

Airbnb reported its first profitable first quarter, with net income of $117 million, or 18 cents per share, compared with a loss of $19 million, or 3 cents per share, in the year-ago quarter. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) were $262 million, better than analysts’ expectations of $259 million.

Revenue rose to $1.82 billion from $1.51 billion in the year-ago quarter, beating analysts’ expectations of $1.79 billion.

Airbnb expects second-quarter revenue of $2.35 billion to $2.45 billion. Analysts forecast revenue of $2.42 billion. The company expects adjusted Ebitda to be in line with the year-ago quarter, although the adjusted Ebitda margin is expected to be lower due to marketing expenses. Analysts were expecting adjusted Ebitda of $834 million.

See: Airbnb has a new, old plan to get into the hotel business

Executives also announced Tuesday that the board has approved a new share buyback of up to $2.5 billion.

Shares of Airbnb are up 50% year to date, while the S&P 500 index is up

SPX

It’s up about 7% so far this year.

related to: Expedia benefits as bulk travel bookings are online

Leave a Reply

Your email address will not be published. Required fields are marked *