Airbnb is expected to report a year-over-year drop in bookings and average daily rates (ADR) for the second quarter when it hands down its latest financial results on August 3 after the market close.
When reporting its first quarter earnings in May, the company flagged that nights and experiences booked during 2Q would have unfavorable year-over-year comparisons as this period overlaps with pent-up 2022 demand following the Omicron COVID variant.
It expects year-over-year growth in nights and experiences booked to be lower than its revenue growth during the quarter, which is pegged at between 12% and 16% to revenue between $2.35 and $2.45 billion.
“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.
Airbnb also expects its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be similar to its adjusted EBITDA in 2Q 2022 on a nominal basis but lower on a margin basis.
“The anticipated year-over-year decline in adjusted EBITDA margin is primarily driven by changes in the expected timing of our marketing spend relative to the prior year,” it said. “We continue to anticipate a full-year adjusted EBITDA margin that is broadly in line with full-year 2022.”
Analysts, on average, expect Airbnb to report revenue of $2.41 billion for the quarter, up 14.8% from $2.1 billion in the year-ago quarter.
Earnings per share are expected to be $0.77, up 37.5% from $0.56 in 2Q 2022, according to Zacks Consensus Estimate.
Airbnb shares traded hands at US$153.05 at noon on Monday. The stock has gained 80.3% year to date.
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