Airbnb Stock Soars on Q4 Earnings Beat and Strong Demand


Airbnb Stock Soars on Q4 Earnings Beat and Strong Demand

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On Tuesday, Airbnb reported its Q4 earnings that beat analysts’ expectations on both the top and bottom lines. The revenue for the quarter rose 24% YoY, making it the highest fourth quarter the company has ever recorded. The company reported $319 million in net income for the quarter, up from $55 million in the previous year. Furthermore, Airbnb’s adjusted earnings before interest, taxes, depreciation, and amortization of $506 million exceeded the $432 million expected by analysts. As a result of this strong performance, the company’s shares rose about 9% in extended trading.

The company is seeing continued strong demand at the start of 2023, and the company’s revenue in the first quarter is expected to be between $1.75 billion and $1.82 billion, which is above the $1.69 billion expected by analysts polled by Refinitiv. Airbnb also said that guest demand and supply growth remained strong throughout 2022.

Airbnb said that it made difficult choices to cut spending during the pandemic, but it has modestly increased its headcount over the past two years. The company expects to continue hiring at a judicious pace in 2023. Compared to 2019, its headcount is down 5%, while revenue is up 75%.

Gross booking value, which Airbnb uses to track host earnings, service fees, cleaning fees, and taxes, totaled $13.5 billion in the fourth quarter. The company reported 88.2 million nights and experiences booked in the fourth quarter, up 20% YoY. However, it was below the 89.7 million expected by analysts.

Airbnb said in the investor letter that travelers are returning to major cities, which has historically been one of the “strongest areas” of its business. The company said domestic and short-distance travel continued to be strong, but it saw even further improvement in longer-distance and cross-border travel during the quarter.

Airbnb said it’s “particularly encouraged” by market share gains in Latin America, continued recovery within Asia Pacific, and European travelers who are booking summer vacations early.

The company ended 2022 with 6.6 million active listings, reflecting an increase of over 900,000, or 16%, compared with 2021. Average daily rates decreased by 1% from a year ago to $153 in the fourth quarter.

Airbnb’s quarterly call with investors will be held on Tuesday at 4:30 p.m. ET.

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