Airbnb Inc's (NASDAQ:ABNB, ETR:6Z1) stock dropped nearly 5% in after-hours trading after third-quarter earnings fell slightly short of analyst predictions, though revenue marginally exceeded expectations.
The company reported earnings per share of $2.13 against the $2.14 anticipated, with revenue reaching $3.73 billion, a 10% increase from the same period a year ago.
Net income was $1.37 billion, down from last year’s $4.37 billion, which had included a significant tax benefit. Airbnb expects fourth-quarter revenue between $2.39 billion and $2.44 billion, aligning with analyst projections.
Airbnb highlighted growth in emerging markets, where the booking rate rose at double the pace of core markets. Adjusted EBITDA grew by 7% year-over-year to $2 billion, surpassing expectations.
Gross booking value totalled $20.1 billion, while nights and experiences booked rose 8% to 123 million. The company also noted improvements in listing quality, reporting over 8 million active listings after removing 300,000 lower-quality options.
After hours, the stock fell 4.6% to $140.65.