As Vacation Demand Rises, Airbnb Is Bullish About Earnings

Airbnb Inc on Tuesday anticipated current-quarter revenue above market expectations due to solid travel demand and said it will keep a tight control on expenses to safeguard profits, causing its shares to rise 10% in extended sessions.

The rental company intends to retain last year's margin of 35%, the best since it went public in 2020, despite worries of a recession that have prompted consumer spending concerns.

It was claimed that domestic and short-distance travel remained robust, increasing occupancy rates at major metropolitan sites, and that long-distance and cross-border travel improved during the quarter in question, aided by a stronger dollar and the reopening of borders.

This year, European tourists are planning their summer travels earlier than usual, according to Airbnb.

According to Refinitiv data, the business projected first-quarter sales between $1.75 billion and $1.82 billion, above analysts' average estimate of $1.69 billion.

In addition, it predicted that its average rental prices would decline slightly in the current quarter and continue under pressure through 2023, as tourists return to more affordable urban rentals.

The holiday quarter ending in December saw a 24% increase in revenue to $1.90 billion, which was lower than the previous two quarters but exceeded analysts' average expectation of $1.86 billion.

In the meanwhile, average daily rates decreased by 1% to $153 and bookings increased by 20% to $13.5 billion, falling short of the average analyst forecast of $1.69 billion.

According to Refinitiv statistics, Airbnb recorded a quarterly net profit of $319 million, or 48 cents per share, above projections of 25 cents per share.