Airbnb disappoints with its expectations and plunges into the stock market | Economy

On Tuesday at the close of the market, Airbnb delivered some impressive earnings and interest results. However, he warned that growth would slow in the second quarter and spooked investors. Shares of the hosting company fell about 10% in after-hours trading.

Home rental company based in San Francisco (California) File a report with the Securities and Exchange Commission (SEC) Who expects a “strong” summer travel season. “We expect revenues of $2,350-2,450 million in the second quarter of 2023. This represents annual growth of between 12% and 16%,” he said. In his letter to investors.

This growth is lower than previous quarters. The company made it clear that the booked nights and experiences will have unfavorable comparisons on an annual basis in the second quarter of 2023, as the backlog was added in the same period of 2022 after the omicron variant of covid. “We expect year-over-year growth in nights and experiences booked in the second quarter of 2023 to be lower than our revenue growth during the quarter,” he acknowledged.

The company expects adjusted gross operating income to be similar to the second quarter of 2022 in nominal terms, but lower in margin terms due to higher sales and marketing expenses.

Investors took the data to indicate that rising prices and economic uncertainty are starting to weigh on consumers’ willingness to travel.

standard quarter

This poor outlook prevented the company from celebrating record stock market results in many respects. Revenue in the January-March period rose 20% from the same period a year earlier, to $1.818 billion, the highest number in Airbnb’s first quarter and above analysts’ expectations. Total adjusted operating income was $262 million, up from $229 million a year earlier and also above analysts’ expectations. Airbnb reported a net profit of $117 million, compared to a loss of $19 million in the first quarter of 2022. It is also the first time the company has made a net profit in the first quarter.

We had another record first quarter, with more than 120 million nights and experiences booked and show growth accelerating worldwide. We also reported revenue growth of 20% year-over-year, and free cash flow for the quarter was $1.6 billion. With over 50 new features and updates released in the past week, our service has never been better, co-founder and CEO Brian Chesky said in a statement.

Although the numbers are very good, the first quarter is the least significant to the company’s progress. The company concentrates its revenue and earnings mainly in the third quarter, summer in the northern hemisphere, followed by the second and fourth quarters. Bad omens affected the minds of investors more than the calculations. On the other hand, Airbnb has accumulated a 50% revaluation so far, which many shareholders benefit from.

Among the trends Airbnb is detecting affecting its business, the company notes that guests are traveling more abroad and returning to cities. Overnight, cross-border accommodation grew 36% year-on-year, with strong traction in the Asia Pacific region. “In addition to strong cross-border growth, we have seen more guests return to cities.” Nights booked in large cities increased by 20% in the first quarter of 2023 compared to the same period in the previous year.

Also, customers are turning to Airbnb for longer periods. Long-stay nights (28 nights or more) accounted for 18% of the total number of nights booked in the first quarter. “Over the past three years, we have seen new use cases emerge as guests from all regions and age groups use Airbnb for long-term stays.”

Supply growth also continued to accelerate, up 18% year-over-year, with increases of more than 10% across all regions and market types, with the fastest growth in North America and Latin America.

The company’s shares rose sharply after the results were presented for the full year of 2022. The company, founded in 2008 by Brian Chesky, Nathan Blitcharczek, and Joe Gebbia, generated $8,399 million in revenue last year, up 40% from the previous year and more than double that in 2020. Its operating result more than quadrupled to $1,802 million. dollar. Thanks to that, it went from losses of 352 million in 2021 to profits of 1,892 million last year, the first in a full year in its short history.

The company successfully defied the pandemic with an initial public offering at the end of 2020. Demand was so high that it raised the IPO price to €68, 44% of the initial reference. In addition, it jumped dramatically on its stock market debut and its market capitalization exceeded $100,000 million. Shares more than halved to around $85 a share late last year on fears of a slowing economy, but they have rallied this year and closed at $127 a share on Tuesday. .

Follow all information for Economy And a job in Facebook And Twitteror on our site The weekly newsletter