Airbnb posts strong growth but disappointing outlook
Airbnb's first-quarter results were largely consistent with projections, but the company released a dismal revenue forecast for the current quarter.
Quick overview
- Airbnb's first-quarter results met projections, but the company issued a disappointing revenue forecast for the current quarter, causing shares to drop by about 4%.
- Revenue increased by 6% year-over-year, rising from $2.11 billion to $2.24 billion, while net income fell from $264 million to $154 million.
- The company anticipates second-quarter revenue between $2.99 billion and $3.05 billion, slightly below analysts' expectations of $3.04 billion.
- Airbnb reported a 7% annual increase in gross booking value to $24.5 billion, despite experiencing softness in travel from Canada to the US.
Airbnb’s first-quarter results were largely consistent with projections, but the company released a dismal revenue forecast for the current quarter. Shares fell by roughly 4%. Revenue rose 6% from $2.11 billion in the previous year. In the same period last year, net income dropped from $264 million, or 41 cents per share, to $154 million, or 24 cents per share.
Airbnb said its second-quarter revenue is expected to be between $2.99 billion and $3.05 billion, with $3.02 billion being the middle of the range.
Analysts had projected revenue of $3.04 billion for the current period. The business stated that because of the Easter timing, it anticipates a two-percentage-point benefit during this time. In a letter to shareholders, the company stated, “We’ve seen relatively softer results in the US, which we believe has been largely driven by broader economic uncertainties.”.
The company reported “softness” in travel from Canada to the US towards the end of the quarter, despite claiming a strong year-over-year growth in North America, despite broad macro uncertainty.
According to Airbnb, investors search for indications that President Donald Trump’s broad import taxes on expenses and consumer spending are the talk of this earnings season. According to projections, gross booking value, which accounts for host earnings, service charges, cleaning costs, and taxes, rose 7% annually to $24.5 billion.
The number of nights and experiences booked increased 8% from the previous year to 143.1 million, higher than the analysts’ estimate of 143.4 million. Airbnb stated nights experiences increased 11% from a year ago, excluding North America.
In March, the number of nights Canadian visitors to Mexico reserved increased by 27% compared to March 2024. According to the company, reservations for nights and experiences are expected to “moderate” in the current period, starting in the first quarter.
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