Shares in Airbnb plunged 13% in after hours trading after the vacation rental booking company forecast a slow down in revenue growth in the second quarter reflecting fewer bookings and lower average daily rates.
Russ Mould at AJ Bell noted “investors were checking out of Airbnb in numbers in after-hours trading as the good news of better-than-expected quarterly performance was swiftly followed by the bad news of a weak outlook.”
The cautious outlook overshadowed better-then-expected first quarter numbers which saw the firm return to profit with net income of US$117mln compared to a net loss of US$17mln a year before.
Revenue growth in the quarter was 20% totalling US$1.8bn but Airbnb expects this pace of growth to slow in the second quarter to between 12% and 16% with a figure between US$2.35bn to US$2.45 compared to the consensus of US$2.42bn.
Neil Wilson at markets.com felt the share price move was “probably an overreaction,” noting the guidance was “broadly in line with analyst expectations.”
He described the numbers as “good but not good enough.”
But Mould pointed out that both bookings and prices are heading in the wrong direction as far as Airbnb is concerned.
“Perhaps a bigger worry is this could be the first sign that the impressively resilient spending on travel in the wake of the pandemic is coming under greater pressure,” he added.