Airbnb (NASDAQ:ABNB) has said its fourth-quarter revenue could fall short of market expectations as a strong dollar starts to impact its business and bookings slow.
San Francisco-based Airbnb guided to fourth-quarter revenue of between $1.80 billion and $1.88 billion, versus analysts' expectations of $1.85 billion, according to Refinitiv.
The warning came as the vacation rental company posted forecast-beating third-quarter profit and revenue but saw growth slow to 29% in the July-September period, down from 58% in the second quarter and from 67% a year earlier when people started traveling more as COVID-19 cases fell.
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The company recorded its highest-ever third-quarter bookings, with nearly 100 million nights and experiences booked. Average daily rates climbed 5% year-over-year to $156.
Airbnb, which generates half its revenue from listings outside the United States, said the rates were significantly higher excluding the impact of foreign currency fluctuations.
But the company told shareholders that it expected a continued, albeit choppy, recovery of cross-border travel as macro conditions persisted. The travel industry has seen a big recovery this year on the back of the best summer travel season in three years, but it faces risks from the global surge in inflation.
However, Airbnb chief executive Brian Chesky said in the post-results conference call that the company still expects "really strong demand" next year, especially from US travelers going to Europe, Reuters reported.
Airbnb shares fell 7% in after-hours trading on Tuesday. The stock has dropped by more than a third this year, versus a roughly 19% fall in the broader market.
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