Airbnb (NASDAQ:ABNB) hailed results yesterday as its “most profitable Q2 ever” – but some investors were left wanting more.
The holiday let platform generated a net income of US$379mln for the period - a near US$700mln increase on a loss-making second quarter of 2019.
And the tech company said it is “so confident in our long-term growth and profitability” it is launching a US$2bn share repurchase programme.
The group generated US$2.1bn in turnover in the quarter, a 58% increase year on year – but a touch shy of a US$2.11bnexpected by analysts, according to data from Refinitiv.
According to Reuters, investors were also let down by the group forecasting current quarter bookings at par with the record-breaking previous quarter.
The market had been looking for more on the back of booming summer demand from pandemic-weary travellers.
Over the last year, it generated US$1.2bn of net income, delivering a net profit margin of 18% in the second quarter, up from a loss-making margin of -5% in the equivalent
Guest demand hit a quarterly record with 103.7 million nights and experiences booked during the second quarter – a 35% increase on pre-pandemic levels in the equivalent part of 2019.
Long-term stays of 28 days or more were its fastest-growing category compared to 2019, an increase of 25% from a year ago and nearly 90% compared to the second quarter of 2019.
Airbnb (NASDAQ:ABNB) said its free cash flow has improved vastly since the ‘depths of the pandemic’, lifting to US$795mln during the quarter, up from a cash loss of US$263mln in the same period two years ago.
“During the height of the pandemic, we made many difficult choices to reduce our spending, making us a leaner and more focused company,” the company told shareholders.
“We’ve kept this discipline ever since, allowing our hiring and investment plans to remain unchanged since the beginning of the year. Airbnb (NASDAQ:ABNB) is well positioned for whatever lies ahead.”
Nevertheless, shares fell by as much as 10% in after-hour trading.