Brian Chesky, co-founder and chief executive officer of Airbnb Inc., during a press conference in Los Angeles, California, U.S., on Wednesday, May 1, 2024.
Eric Thayer | Bloomberg | getty images
airbnb It reported mixed first-quarter results after the bell on Thursday and warned of regional weakness due to the war in Iran.
Here’s how the company performed against LSEG estimates:
- earnings per share: 26 cents vs. 29 cents expected
- Income: $2.68 billion vs. $2.62 billion expected
Revenue during the quarter increased 18% from $2.27 billion last year. Net income rose to $160 million, or 26 cents a share, from $154 million, or 24 cents a share, a year earlier.
For the current quarter, Airbnb issued an upbeat forecast, calling for revenue between $3.54 billion and $3.60 billion. Analysts had expected revenue of $3.46 billion. The company lifted revenue guidance for the year from a forecast of 12% growth to “low to mid teens.”
Like many travel and airline companies, Airbnb is feeling pressure from the Iran war, which has driven up oil prices, canceled flights and fueled broader regional uncertainty.
The company expects a 100-basis-point decline in nights and seats booked in the second quarter due to the war, and a slowdown relative to the first quarter.
“We remain optimistic about our continued momentum, even as we face ongoing headwinds from Reserve Now in the back half of this year, the rollout of Pay Later in 2025, and the Middle East conflict,” the company wrote in a statement. letter to shareholders.
During the quarter, Airbnb said the Middle East conflict contributed to a “slight increase” in cancellations in the Europe, Middle East, Africa and Asia Pacific regions. However, the homestay platform said it is seeing “dynamics” similar to last year’s tariff threats, which led to “softness” among some North American regions but increased travel elsewhere.
“We have millions of homes at every price point, everywhere in the world, and that’s something most travel companies can’t replicate,” Airbnb wrote. “This is the main reason we are able to deliver consistent results even in challenging environments.”
Gross booking value, which tracks host earnings, service fees, cleaning fees and taxes, rose 19% to $29.2 billion, beating analysts’ estimates of $27.82 billion.
Nights and seats booked rose 9% to 156.2 million, surpassing LSEG’s estimate of 155.77 million. Driven by new expansion markets such as Brazil, Japan and India, Airbnb recorded its first book growth since 2022.
Airbnb is also preparing for a busy summer season, with the upcoming FIFA World Cup to be held in 16 cities across Canada, Mexico and the US.
The company said it plans to host the most guests ever at an event and that more than 100,000 properties have joined the platform since the outreach began in October. In February, Airbnb launched a $750 incentive program For new hosts to meet the demand of the tournament.
Airbnb said the Milan Cortina Olympic and Paralympic Games earlier this year welcomed nearly 200,000 guests and increased supply in the host market by nearly a third.
Airbnb reported $519 million in adjusted EBITDA, exceeding LSEG’s estimate of $485 million.
