Airbnb’s Q3 Revenue Soars on Strong International Growth
The vacation home rental giant Airbnb has reported a stellar third quarter, beating revenue estimates and sending its shares skyrocketing by as much as 15% in after-hours trading. The company’s strategic investments in global expansion have paid off, particularly in the Asia-Pacific and Latin American markets.
Global Ambitions Pay Off
Airbnb’s average growth rate of nights booked in expansion markets outpaced its core markets by a significant margin, with a remarkable 19% growth in Asia-Pacific and 15% in Latin America. This growth momentum is expected to continue, with the company forecasting higher nights booked in the fourth quarter compared to the same period last year.
Key Metrics Show Impressive Growth
The company’s gross booking value reached $20.1 billion, a 10% increase from the previous year, while revenue climbed 10% to $3.73 billion, exceeding analyst expectations of $3.72 billion. Nights and experiences booked also saw an 8% increase, reaching 122.8 million.
Regional Performance
Airbnb’s international markets have been a significant driver of growth, with Asia-Pacific and Latin America leading the charge. The company’s ability to tap into these regions has been instrumental in offsetting slower growth in its core markets.
Guidance and Outlook
Looking ahead, Airbnb expects revenue to grow between 8% and 10% in the fourth quarter, with nights booked expected to increase year-over-year. However, the company anticipates a decline in core profit margin due to increased marketing and product development expenses. Average daily rates are expected to rise modestly, following a 1% increase in global rates to $164 in the third quarter.
Profitability and Take Rate
Airbnb reported a profit of $2.13 per share for the quarter, down from $6.63 per share in the previous year, which included one-time income tax-related benefits. The company’s implied take rate remained flat at 18.6%, as revenue generated from additional service fees for cross-currency bookings was offset by investments in customer service.
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