Airbnb shares saw a modest uptick in after-hours trading following the company’s fourth-quarter earnings report, which surpassed revenue expectations and projected a strong outlook for the upcoming period. The travel accommodation giant posted revenue figures that outperformed analyst consensus, signaling continued resilience in its core business model despite a miss on earnings per share.
For the fourth quarter, Airbnb reported revenue of $2.78 billion, exceeding the $2.72 billion anticipated by analysts. This marks the twentieth time in the past twenty-one quarters that the company has exceeded Wall Street’s revenue projections, a testament to its consistent performance in a dynamic market.
While the company delivered on revenue, its earnings per share came in at 56 cents, falling short of the 66 cents expected by LSEG analysts. This earnings miss was attributed to $90 million in non-income tax matters and strategic investments aimed at fostering new growth avenues and policy initiatives, according to the company’s release. Net income for the quarter stood at $341 million, a decrease from the $461 million reported in the same period last year.
Looking ahead, Airbnb provided an optimistic forecast for the current period, projecting revenue between $2.59 billion and $2.63 billion, surpassing the $2.53 billion consensus. Furthermore, the company anticipates full-year revenue growth of “at least low double digits,” aligning with analysts’ expectations of 10.2% growth.
The company’s operational metrics also painted a positive picture. Nights and seats booked reached 121.9 million in the fourth quarter, a 10% increase year-over-year and above the 117.6 million projected by StreetAccount. Gross booking value, a key indicator of host earnings and overall platform activity, surged 16% year-over-year to $20.4 billion, exceeding the $19.4 billion expected by analysts. Adjusted EBITDA for the quarter was reported at $786 million.
In a significant strategic move, Airbnb recently bolstered its technological leadership by appointing Ahmad Al-Dahle as its new Chief Technology Officer. Al-Dahle, formerly the head of generative artificial intelligence at Meta, brings a wealth of experience in cutting-edge AI development. This hire underscores Airbnb’s commitment to leveraging AI to enhance user experiences, optimize operations, and explore new frontiers in travel and e-commerce. The company’s CEO, Brian Chesky, has previously articulated a vision for strategically integrating AI, stating that Airbnb has a unique opportunity to “do AI right for travel and e-commerce.” This executive addition signals a forward-looking approach, aiming to capitalize on the transformative potential of artificial intelligence within the rapidly evolving digital landscape.
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