Airbnb’s Q3 Earnings: A Mixed Bag
Airbnb’s latest quarterly earnings report has sent mixed signals to investors, with revenue beating expectations but falling short on profit estimates. The company’s stock took a 3% hit in after-hours trading as a result.
Revenue Growth, But Profit Disappoints
Airbnb’s revenue increased by 10% year-over-year to $3.4 billion, narrowly beating analyst estimates. However, the company’s net income of $1.37 billion, or $2.13 per share, fell short of expectations. This was partly due to a $2.8 billion tax benefit in the third quarter of 2023.
Expanding Beyond Core Markets
In a letter to shareholders, Airbnb emphasized its focus on expanding into under-penetrated markets globally. The company reported that the average growth rate of nights booked in its expansion markets was double that of its core markets during the third quarter.
Growth Metrics Show Promise
Airbnb’s adjusted EBITDA rose 7% year-over-year to $2 billion, exceeding analyst expectations. Gross booking value, a key metric for the company, totaled $20.1 billion, above analyst forecasts. The company also reported 123 million nights and experiences booked, an 8% increase from last year.
Improving Listing Quality
Airbnb highlighted its efforts to improve listing quality, having removed over 300,000 listings since last year. The company now boasts more than 8 million active listings. Average daily rates increased 1% year-over-year to $164 in the third quarter.
Looking Ahead
Airbnb expects revenue between $2.39 billion and $2.44 billion in the fourth quarter, slightly below analyst estimates. The company remains focused on accelerating growth while preparing for its next chapter, which will involve expanding beyond accommodations.
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