SPAIN – 2021/04/15: On this photo illustration, the Airbnb app seen displayed on a smartphone screen with the Airbnb website displayed on a laptop within the background. (Photo Illustration by Thiago Prudencio/SOPA Images/LightRocket via Getty Images)
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Shares of Airbnb tumbled 10% Wednesday, a day after the corporate released its first-quarter report that offered barely weaker-than-expected guidance and a cautious outlook for the present quarter.
CEO Brian Chesky told CNBC’s “Squawk on the Street” on Wednesday that Airbnb is being cautious about its second quarter due to affordability pressure it’s experiencing in North America.
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“With inflation, individuals are more focused than ever on affordability,” he said. “We’re really focused on attempting to ensure that prices are modulated in North America.”
Chesky expressed similar concerns about price sensitivity in North America through the quarterly call with investors Tuesday, adding that within the U.S. the bottom price offerings on the platform have the very best occupancy. He said that as Airbnb rates normalize, the corporate expects to see a rise in occupancy across more listings.
In its first quarter, Airbnb beat analyst estimates on the highest and bottom lines, and total revenue rose 20% 12 months over 12 months. The corporate 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.
However the home-sharing platform warned that second-quarter comparisons can 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.”
Airbnb forecast second-quarter revenue between $2.35 billion and $2.45 billion. Analysts polled by Refinitiv were expecting $2.42 billion.
Analysts at Bernstein said the corporate posted a “solid enough” quarter despite the challenges it’s anticipating in the present quarter. They maintained their outperform rating on the stock and said in a Wednesday note they see company headwinds as a “short timing effect.”
Baird analysts also said that Airbnb’s results were “generally solid” but that they were overshadowed by concerns about what could are available in the second quarter.
“While we remain somewhat cautious near-term based on macro and discretionary spending risks, longer-term outlook stays vibrant given strength of name, platform and management team,” the analysts wrote in a note Wednesday.
— CNBC’s Michael Bloom contributed to this report