Airbnb Plunges After Earning $555 Million in the Second Quarter, Down 15%

Signs of consumer fatigue are emerging in the American market.

Ignacio Teson•Thursday, August 8, 2024•1 min read

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Airbnb shares plummeted 13% on Wall Street after the company released its second-quarter results, reporting a profit of $555 million, nearly 15% less than the previous year.

Stock market information outside the Nasdaq MarketSite in New York, US, on Thursday, March 23, 2023. Stocks struggled for direction as banks remained lower even after Treasury Secretary Janet Yellen said in prepared remarks to lawmakers that the US is ready to take further measures to protect deposits, if needed. Photographer: Stephanie Keith/Bloomberg via Getty Images

From April to June, revenue increased by 11% to $2.748 billion, with a net income margin of 30%, while costs rose by 15% to $2.251 billion. EBITDA increased by 9% to $894 million.

Additionally, Airbnb generated $1 billion in free cash flow, up 16%, marking its highest level to date.

This financial strength allowed the company to repurchase $749 million worth of Class A shares. Over the past twelve months, share repurchases have totaled $2.75 billion.

In the second quarter, Airbnb recorded 125.1 million bookings for nights and experiences, a 9% increase driven primarily by Latin America and Asia. However, for the third quarter, the company has forecasted a “moderation” in the growth of its bookings.

For the first six months of the year, the company reported earnings of $819 million, up 7%.

Despite meeting sales growth expectations, the second-quarter results fell short of estimates, and the guidance for the third quarter was deemed weak. Although sales growth remains on pace, profit declined by 15%, to $555 million, compared to the market’s estimate of $704 million.

Signs of consumer fatigue are emerging in the American market, and the company anticipates lower booking growth in the next quarter.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.