Airbnb posts strong growth but disappointing outlook

Airbnb’s first-quarter outcomes had been largely in line with projections, however the firm launched a dismal income forecast for the present quarter.

Fast overview

Airbnb’s first-quarter outcomes met projections, however the firm issued a disappointing income forecast for the present quarter, inflicting shares to drop by about 4%.
Income elevated by 6% year-over-year, rising from $2.11 billion to $2.24 billion, whereas web revenue fell from $264 million to $154 million.
The corporate anticipates second-quarter income between $2.99 billion and $3.05 billion, barely beneath analysts’ expectations of $3.04 billion.
Airbnb reported a 7% annual improve in gross reserving worth to $24.5 billion, regardless of experiencing softness in journey from Canada to the US.

Airbnb’s first-quarter outcomes had been largely in line with projections, however the firm launched a dismal income forecast for the present quarter. Shares fell by roughly 4%. Income rose 6% from $2.11 billion within the earlier 12 months. In the identical interval final 12 months, web revenue dropped from $264 million, or 41 cents per share, to $154 million, or 24 cents per share.

Airbnb stated its second-quarter income is predicted to be between $2.99 billion and $3.05 billion, with $3.02 billion being the center of the vary.

Analysts had projected income of $3.04 billion for the present interval. The enterprise said that due to the Easter timing, it anticipates a two-percentage-point profit throughout this time. In a letter to shareholders, the corporate said, “We’ve seen comparatively softer ends in the US, which we imagine has been largely pushed by broader financial uncertainties.”.

The corporate reported “softness” in journey from Canada to the US in direction of the tip of the quarter, regardless of claiming a powerful year-over-year development in North America, regardless of broad macro uncertainty.

In keeping with Airbnb, traders seek for indications that President Donald Trump’s broad import taxes on bills and shopper spending are the discuss of this earnings season. In keeping with projections, gross reserving worth, which accounts for host earnings, service expenses, cleansing prices, and taxes, rose 7% yearly to $24.5 billion.

The variety of nights and experiences booked elevated 8% from the earlier 12 months to 143.1 million, increased than the analysts’ estimate of 143.4 million. Airbnb said nights experiences elevated 11% from a 12 months in the past, excluding North America.

In March, the variety of nights Canadian guests to Mexico reserved elevated by 27% in comparison with March 2024. In keeping with the corporate, reservations for nights and experiences are anticipated to “reasonable” within the present interval, beginning within the first quarter.