The good (and bad) news about Airbnb accounts
Airbnb's reported quarterly earnings beat analyst expectations, however the stock fell 10%. Here because
Like other travel companies, Airbnb has enjoyed a strong rebound with its reopenings, thanks to the newfound ability to travel after pandemic restrictions, however, while its latest quarter results beat analyst expectations, the company expects clouds on the horizon and a slowdown is expected. Forecast that paid off yesterday with a 10% drop in shares .
Here are results and estimates for the future.
THE GOOD NEWS…
In the company's first-quarter results note , Airbnb said its revenue of $1.8 billion was its highest first quarter ever, with revenue up 20% year-over-year. last year "thanks to solid growth in nights and experiences booked [over 120 million] and stability in average daily rates [$168]."
Net income was $117 million, while it reported a net loss of $19 million in the same period last year. The increase, according to the press release, “is mainly due to the growth in revenues, the discipline of expenses and interest income”.
The company added that travelers are returning to big cities and booking longer stays . In particular, in the first quarter, cross-border overnight stays grew by 36% and those in large cities increased by 20% compared to a year ago.
…AND THE BAD
While Airbnb said in its shareholder letter that it had a “strong start” to the year and was looking forward to another “strong summer travel season,” it also warned to expect a slowdown in the months ahead, especially in the second quarter of 2023 compared to the same period last year.
CLOUDS ON THE HORIZON
For the second quarter of 2023, Airbnb expects revenue of between $2.35 billion and $2.45 billion, which would represent 12-16% year-over-year growth and is broadly in line with analyst expectations.
The platform expects the number of nights and experiences sold on the platform to grow at a slower pace and the average price per day to decrease slightly.
Nicholas Cauley, an analyst at Third Bridge, said the pressure on household budgets will likely lead consumers to choose more affordable housing, resulting in a decline in average daily rates in future quarters: “The company now faces stiff competition rivals such as Booking.com and Expedia's Vrbo, so its future appears less secure.
AI ALSO PEEKS INTO AIRBNB
When announcing the results, Airbnb also teased that customers can expect "big changes." Among other things, the company plans to integrate artificial intelligence functions, including GPT-4, into its platform over the next year.
He also told investors that he intends to focus on three "strategic priorities": making hosting common, refining their core service, and expanding its presence in "less mature" international markets.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/le-buone-e-le-cattive-notizie-sui-conti-di-airbnb/ on Wed, 10 May 2023 12:33:26 +0000.