Airbnb posted a first quarter profit beat but its shares tumbled by double digits in after-hours trading after the company warned it expects to see its average daily rates (ADR) decline slightly in the second quarter.
Airbnb is expecting to see revenue of $2.35 billion to $2.45 billion for its second quarter, in line with analysts’ expectations of $2.42 billion, but expects a slight decline in ADR.
“Although ADR continues to demonstrate greater than expected resilience, particularly in EMEA and North America, we anticipate a slightly lower ADR in 2Q 2023 than 2Q 2022 driven by mix shifts and the introduction of new host pricing tools as part of our 2023 Summer Release,” the company said.
It also noted that nights and experiences booked in 2Q 2023 would have unfavorable year-over-year comparisons due to pent-up travel demand in 2Q 2022 following the COVID Omicron variant.
Airbnb shares were down 10.5% at US$113.72 following the release of its results.
But it wasn't all bad news: the San Francisco-based vacation rentals company posted its first GAAP profitable 1Q with a net income of $117 million, a $136 million improvement from the year-ago quarter when the company reported a net loss of $19 million.
Earnings per share were $0.18, up from $0.03 in the year-ago quarter and ahead of the Street’s expectation of $0.10.
Revenue came in at $1.8 billion, up 20% year-over-year and in line with Wall Street’s expectations.
Nights and experiences booked grew 19% to 121.1 million, which was below analysts’ expectations of 122.4 million.
“Even with continued macroeconomic uncertainties, we have seen our highest number of active bookers, demonstrating both loyalty from our returning guests and a growing base of first-time bookers,” Airbnb said in a statement.
The company also said that its current backlog of nights is approximately 25% stronger than a year ago.
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