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Airbnb Expects Strong Q1 Revenue on Robust International Travel

Airbnb projects Q1 revenue above Wall Street estimates on the back of robust international travel and longer-duration bookings. The company expects revenue between US$2.03 billion and $2.07 billion, surpassing the average estimate of US$2.03 billion from the LSEG. Despite a 5% dip in share prices, Airbnb reported adjusted earnings per share of 76 cents for Q4 2023, beating estimates of 62 cents.

San Francisco-based short-term rental company, Airbnb (ABNB.O), has projected first-quarter revenue that surpasses Wall Street estimates. The company anticipates a boost from strong cross-border travel and longer-duration bookings.


With global air connectivity on the rise and travellers flocking to Asian and Latin American countries, international travel demand is expected to remain robust this year, while domestic travel demand in North America plateaus.


Airbnb expects its Q1 revenue to range between US$2.03 billion and US$2.07 billion, exceeding the average estimate of US$2.03 billion from the London Stock Exchange Group (LSEG). CFO David Stephenson expressed confidence in the company's growth prospects, stating, "Making sure that we invest in these expansion countries where we're under-penetrated, I think that's going to continue to drive growth for us for the rest of the year."


Despite the positive revenue outlook, Airbnb's shares dipped 5% in after-hours trading, reversing the initial 9% surge following the company's earnings beat. In the fourth quarter of 2023, the company reported adjusted earnings per share of 76 cents, surpassing estimates of 62 cents.


During the quarter ended December 31, travellers booked a total of 98.8 million nights and experiences, marking a 12% increase compared to the previous year. The strongest growth was observed in the Asia Pacific and Latin America regions, with nights booked in China soaring by nearly 90% year-over-year. Additionally, the average daily rates rose by 3%, while nights booked for long-duration trips experienced a significant 20% jump. As a result, Airbnb's revenue for the quarter reached US$2.20 billion, surpassing its previous forecast.


However, the company reported a net loss of US$349 million for the quarter, primarily due to outstanding income tax obligations in Italy. Airbnb had announced in December that it would pay $621 million to the Italian Revenue Agency for the tax years 2017 to 2021. The company also cautioned that there could be "material" amounts to be paid for the years 2022 and 2023.

 
  • Airbnb projects Q1 revenue above Wall Street estimates on the back of robust international travel and longer-duration bookings.

  • The company expects revenue between US$2.03 billion and US$2.07 billion, surpassing the average estimate of US$2.03 billion from the LSEG.

  • Despite a 5% dip in share prices, Airbnb reported adjusted earnings per share of 76 cents for Q4 2023, beating estimates of 62 cents.


Source: REUTERS


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