Airbnb shares slid as much as 6% in prolonged trading Thursday after the short-term home-rental company reported a smaller sum of nights and experiences booked within the second quarter than analysts had projected.
Here’s how the corporate did:
- Earnings: 98 cents per share, vs. 78 cents per share as expected by analysts, based on Refinitiv
- Revenue: $2.48 billion, vs. $2.42 billion as expected by analysts, based on Refinitiv
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Airbnb’s revenue grew 18% 12 months over 12 months within the quarter, based on a statement. Net income reached $650 million, compared with about $379 million, or 56 cents per share, within the year-ago quarter.
The corporate reported $19.1 billion in gross booking value for the quarter. That was up 12% from the second quarter of last 12 months and above the $18.99 billion consensus amongst analysts surveyed by StreetAccount.
Airbnb said it had 115.1 million nights and experiences booked through the quarter, up almost 11%, but lower than the 117.6 million StreetAccount consensus. Nights and experiences booked increased 19% in the primary quarter.
In a letter to shareholders, Airbnb said the nights and experiences booked number was up against a troublesome comparison.
“We saw an improvement in year-over-year Nights and Experiences Booked growth through the quarter from 10% in April to fifteen% in June,” the corporate said. “Specifically, we were encouraged by the acceleration in year-over-year nights in North America throughout the quarter, and the recovery in EMEA in June following difficult holiday comparisons in May.”
Gross booking value per night, at $166.01, was up 1% 12 months over 12 months.
With respect to guidance, Airbnb called for $3.3 billion to $3.4 billion in third-quarter revenue, or 14% to 18% growth. Analysts polled by Refinitiv had been searching for $3.22 billion. Management called for a “modest” sequential acceleration in nights and experiences booked.
Airbnb still sees loads of service opportunities that would add to revenue growth, CEO Brian Chesky told analysts on a conference call. He said there are many services people should purchase after they stay in hotels and resorts that Airbnb has yet to make available to its guests.
He said an promoting platform is “obviously” one thing Airbnb could add and that the corporate could also start matching available hosts with individuals with homes who lack the time to host.
Airbnb has said it desires to refine its service using OpenAI’s GPT-4 large language model, a type of artificial-intelligence software that may compose realistic text or summarize information in response to human input. On Thursday call Chesky said he would really like to make use of this technology to make the corporate’s customer-service department more practical. It’s possible that some future support requests won’t require help from agents, he said.
Through the quarter Airbnb introduced Rooms in an effort to play up the appeal of reasonably priced private bedrooms to rent out, at $67 per night on average.
Notwithstanding the after-hours move, Airbnb shares have risen about 64% to date this 12 months, outperforming the S&P 500 stock index, which is up 17% over the identical period.
