Brian Chesky, CEO of Airbnb speaking on CNBC’s Squawkbox on May 4th, 2023.
CNBC
Shares of Airbnb fell as much as 10% in prolonged trading Tuesday despite first-quarter earnings that beat analyst estimates on the highest and bottom lines, because it offered barely weaker-than-expected guidance and a cautious outlook for the present quarter.
Here’s how the corporate did as per consensus analyst estimates by Refinitiv:
- EPS: 18 cents vs. 9 cents expected
- Revenue: $1.82 billion vs. $1.79 billion expected
Total revenue rose 20% yr over yr. Airbnb swung to a net profit of $117 million, or 18 cents per share, from a net lack of $19 million, or 3 cents per share, within the year-earlier period. The figure marks the primary time Airbnb has been profitable during its first quarter on a GAAP basis.
In its shareholder letter, Airbnb said it had a “strong start” to the yr, and it’s looking forward to a different “strong summer travel season.” Nevertheless, it warned that second-quarter comparisons could be tough, saying, “Nights and Experiences Booked may have unfavorable year-over-year comparisons in Q2 2023 as we overlap pent-up 2022 demand following the COVID Omicron variant.”
The house-sharing platform forecast second-quarter revenue between $2.35 billion and $2.45 billion. Analysts polled by Refinitiv expected $2.42 billion.
During its quarterly call with investors, Airbnb said it also plans to integrate artificial intelligence features, including GPT-4, into its platform over the following yr or so. The corporate said customers can expect to see “big changes.”
Average each day rates were flat in comparison with a yr ago at $168 in the primary quarter, and the corporate said energetic listings increased 18% yr over yr.
Gross booking value, which Airbnb uses to trace host earnings, service fees, cleansing fees and taxes, totaled $20.4 billion in the primary quarter. The corporate reported 121.1 million nights and experiences booked in the primary quarter, up 19% yr over yr, in keeping with estimates by analysts, based on StreetAccount.
The corporate said within the investor letter that it intends to remain focused on three “strategic priorities.” The corporate said it’s working to make hosting on the platform just as popular as travel, provide reasonably priced stays for guests and increase its presence in “less mature” international markets.
Airbnb added within the investor letter that travelers are returning to major cities, they usually are also booking longer stays.
Correction: Airbnb’s total revenue for the primary quarter rose 20% yr over yr. An earlier version misstated the timeframe.
