Airbnb reported first-quarter results that exceeded analysts’ expectations, with earnings per share of 41 cents compared to the expected 24 cents and revenue of $2.14 billion versus the projected $2.06 billion. The company saw an 18% increase in revenue year-over-year, reaching a net income of $264 million, or 41 cents per share. However, despite these positive results, Airbnb provided weaker-than-expected guidance for the second quarter, causing shares to drop more than 6% in extended trading.
In its letter to shareholders, Airbnb mentioned a robust demand for travel ahead of the peak summer season, driven by events like the Olympics in Paris. The company anticipates an acceleration in year-over-year revenue growth for its third quarter, mainly due to its summer travel backlog. Special events such as the solar eclipse in North America also contributed to engagement with Airbnb’s platform during the first quarter, with 500,000 guests staying on Airbnb during the event.
Adjusted EBITDA for the first quarter was reported at $424 million, marking a 62% increase year over year and surpassing analyst expectations. Gross booking value, which tracks host earnings and fees, reached $22.9 billion, with 132.6 million nights and experiences booked, up 9.5% from the previous year. Growth in booked nights and experiences was particularly strong in the Asia Pacific and Latin America regions, with Airbnb noting an increase in app downloads and usage, especially in the U.S.
The company also highlighted a 3% increase in average daily rates to $173 in the first quarter and expressed satisfaction with having the highest number of active listings yet, up 15% from the previous year. Airbnb’s strong performance was further supported by higher than expected bookings and continued engagement growth, reinforced by positive trends in app downloads and usage. The company’s focus on expanding its presence in key regions and enhancing user experience appears to be yielding positive results.
Despite the weaker guidance for the second quarter, Airbnb remains optimistic about its growth prospects, citing increased demand for travel as a key driver. The company is well-positioned to capitalize on upcoming events and expects to see a significant boost in revenue growth for the third quarter as summer travel picks up. With a continued focus on improving its platform, expanding its reach, and diversifying its offerings, Airbnb looks set to maintain its position as a leader in the online travel accommodation sector.
