Brian Chesky, co-founder and chief executive officer of Airbnb Inc., during a press conference on Wednesday, May 1, 2024 in Los Angeles, California, United States.
Eric Thayer | Bloomberg | Getty Images
airbnb reported mixed first-quarter results after the bell on Thursday and warned of regional weakness caused by the Iran war.
Here’s how the company performed against LSEG’s estimates:
Earnings per share: 26 cents vs. 29 cents expected Earnings: $2.68 billion vs. $2.62 billion expected
Revenue for the quarter increased 18% from $2.27 billion in the year-ago period. Net income increased to $160 million, or 26 cents per share, from $154 million, or 24 cents per share, a year earlier.
For the current quarter, Airbnb issued an upbeat forecast for revenue of $3.54 billion to $3.6 billion. Analysts had expected sales of $3.46 billion. The company has raised its sales forecast for this year to “low to mid-teens” growth from the 12% forecast.
Like many travel companies and airlines, Airbnb is feeling the pressure from the Iran war. The Iran war has led to soaring oil prices, canceled flights, and increased regional uncertainty.
The company expects a 100 basis point headwind in night and seat reservations in the second quarter due to the war, resulting in a slowdown compared to the first quarter.
“We remain optimistic that our momentum will continue even in the face of challenging comparisons in the second half of this year, including the introduction of Book Now Pay Later in 2025 and current headwinds,” the company said in a letter to shareholders.
Airbnb said it saw a “slight increase” in cancellations in Europe, the Middle East, Africa, and Asia Pacific during the quarter due to the Middle East conflict. However, the homestay platform said it was seeing “dynamics similar to” last year’s tariff threats, with “softness” among some regions in North America, but an increase in travel elsewhere.
“We have millions of homes in every price range, anywhere in the world, something few travel companies can match,” Airbnb writes. “This is the main reason why we are able to deliver consistent results even in difficult environments.”
Total bookings, which includes host revenue, service fees, cleaning fees and taxes, rose 19% to $29.2 billion, beating analysts’ expectations of $27.82 billion.
Nights and seats booked rose 9% to 156.2 million seats, exceeding LSEG’s forecast of 155.77 million seats. Airbnb also reported the highest growth in first-time bookings since 2022, driven by new expansion markets such as Brazil, Japan and India.
Airbnb is also gearing up for a busy summer season, with the FIFA World Cup scheduled to be held in 16 cities across Canada, Mexico, and the United States.
The company said it will host the most guests it has ever hosted at an event, with more than 100,000 properties joining the platform since it began its outreach in October. In February, Airbnb launched a $750 incentive program for new hosts to meet tournament demand.
Airbnb said the Milan-Cortina Olympic and Paralympic Games earlier this year attracted about 200,000 guests, increasing host market supply by nearly a third.
Airbnb reported adjusted EBITDA of $519 million, beating LSEG’s estimate of $485 million.
