Mike Cigar | Reuters
Airbnb beat Wall Street earnings estimates and delivered revenue that met expectations for the second quarter. The company also announced a $2 billion share buyback program.
Airbnb, like Uber, has benefited from increased consumer spending on activities versus goods. Revenue jumped 58% year over year to $2.1 billion helping drive the company’s most profitable second quarter to date.
Shares fell about 9%, despite what appeared to be a solid report, indicating that Wall Street was looking for greater growth and outperformance in revenue.
Here are the main numbers:
- Earnings per share: $0.56 versus the $0.43 analysts had expected, according to Refinitiv.
- he won: $2.10 billion versus the $2.11 billion analysts had expected, according to Refinitiv.
Airbnb reported net income of $379 million, up from a loss of $68 million in the quarter last year.
The company said it tightened spending at the height of the pandemic, which helped make it more agile and focused, and that it has adapted its business as travel continues to change.
Airbnb expects record revenue during the third quarter despite headwinds from exchange rate fluctuations, specifically the weakening of the euro against the dollar. It drove third-quarter revenue down between $2.78 billion and $2.88 billion, topping StreetAccount’s estimate of $2.77 billion. The company said it broke the one-day revenue record on July 4, which it says points to a strong summer season ahead.
For the second quarter, Airbnb reported that more than 103 million nights and experiences were booked. It’s the company’s largest quarterly figure ever, but it missed StreetAccount’s estimate of 106.4 million nights and booked experiences.
Booking value, which Airbnb uses to track host earnings, service fees, cleaning fees and taxes, totaled $17 billion in the second quarter, up 27% year over year.
And while many companies invite employees to return to the office, long-term stays, where guests stay at home for 28 days or more, remained Airbnb’s fastest-growing segment, with 25% growth compared to the same quarter last year.
The company said the total number of nights booked for cross-border travel exceeded pre-pandemic levels during the quarter and doubled compared to the same quarter last year.
Average daily rates are up 40% from pre-pandemic levels in 2019, to $164. This is an increase of 7% from the same quarter last year, excluding the effects of currency fluctuations. The company expects ADR to stabilize in the third quarter on an annualized basis.