Airbnb (ABNB) earnings Q2 2022

Airbnb (ABNB) earnings Q2 2022
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Brian Chesky, CEO and co-founder of Airbnb

mike reaping | Reuters

airbnb beat Wall Street estimates for recorded earnings and income that was in line with estimates for the second quarter. The company also announced a $2 billion share buyback program.

Shares fell about 9% after hours, despite what appeared to be a strong report, suggesting that Wall Street was looking for even more growth and revenue growth.

These are the key numbers:

  • Earnings per share: $0.56 vs. $0.43 expected by analysts, according to Refinitiv.
  • Income: $2.10 billion vs. $2.11 billion expected by analysts, according to Refinitiv.

airbnb, like uber, benefited from an increase in consumer spending on activities rather than goods. Revenue increased 58% year-over-year to $2.1 billion, helping fuel the company’s most profitable second quarter to date.

Airbnb reported net income of $379 million, versus a loss of $68 million in the prior year quarter.

The company said it curtailed spending at the height of the pandemic, helping it become leaner and more focused, and adapting its business as travel continues to change.

Airbnb anticipates record revenue during the third quarter despite headwinds from currency fluctuations, specifically the weakening of the euro against the dollar. It guided third-quarter revenue to between $2.78 billion and $2.88 billion, ahead of StreetAccount’s estimate of $2.77 billion. The company said it broke a single-day revenue record on July 4, signaling a strong summer season ahead.

For the second quarter, Airbnb reported more than 103 million nights and experiences booked. It’s the biggest quarterly number in the company’s history, but it fell short according to StreetAccount’s estimates of 106.4 million nights and experiences booked.

Gross booking value, which Airbnb uses to track host earnings, service fees, cleaning fees and taxes, totaled $17 billion in the second quarter, up 27% from a year earlier.

And while many companies are calling employees back to the office, long-term stays, in which guests stay in a home for 28 days or more, remained Airbnb’s fastest-growing segment, with a growth of 25% compared to the quarter of the previous year.

The company said gross nights booked for cross-border travel exceeded pre-pandemic levels during the quarter and doubled compared to the same quarter last year.

Average daily rates increased 40% compared to pre-pandemic levels in 2019, reaching $164. That’s 7% more than in the same quarter a year ago, excluding the effects of currency fluctuations. The company anticipates that the ADR will remain flat in the third quarter year over year.

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