Airbnb recently released its first-quarter financial results, which exceeded analysts’ expectations in terms of earnings per share and revenue. The company reported earnings per share of 41 cents compared to the 24 cents expected, with revenue reaching $2.14 billion over the anticipated $2.06 billion. This marked an 18% increase in revenue from the previous year, with a net income of $264 million, or 41 cents per share, compared to $117 million, or 18 cents per share, in the same period last year. Despite the positive results, Airbnb provided a weaker-than-expected guidance for the second quarter, causing shares to drop by more than 6% in extended trading.
Looking ahead, Airbnb is optimistic about a strong demand for travel leading up to the peak summer season, citing events such as the Olympics in Paris driving interest for accommodations. The company anticipates accelerated revenue growth in the third quarter compared to the second due to a summer travel backlog. Special events like the solar eclipse in North America also contributed to engagement on the platform, with 500,000 guests staying on Airbnb during the event. Adjusted EBITDA for the first quarter reached $424 million, up 62% year over year, surpassing analyst expectations.
Gross booking value, a key metric for tracking host earnings, service fees, cleaning fees, and taxes, amounted to $22.9 billion in the first quarter. The company reported 132.6 million nights and experiences booked, a 9.5% increase from a year ago, and higher than the 132.1 million expected by analysts. Growth in booked nights and experiences was particularly strong in the Asia Pacific and Latin America regions. Airbnb also noted a 60% year-over-year increase in app downloads in the U.S., signaling growing user engagement.
Average daily rates rose by 3% to $173 in the first quarter, with Airbnb boasting its highest number of active listings ever, showing a 15% increase from the previous year. The company remains encouraged by the growth in app downloads and usage, with a focus on providing a seamless and user-friendly experience. Despite the positive performance in various regions and key metrics, Airbnb’s stock fell in extended trading due to the cautious guidance provided for the second quarter, highlighting the ongoing challenges and uncertainties faced by the travel industry amid the COVID-19 pandemic.
