Brian Chesky, co-founder and chief executive officer of Airbnb Inc., during a news conference in Los Angeles, California, US, on Wednesday, May 1, 2024.
Eric Thayer | Bloomberg | Getty Images
Airbnb reported mixed first-quarter results after the bell on Thursday and warned of regional weakness spurred by the war in Iran.
Here’s how the company did versus the LSEG estimates:
- Earnings per share: 26 cents vs. 29 cents expected
- Revenue: $2.68 billion vs. $2.62 billion expected
Revenue grew 18% during the quarter from $2.27 billion last year. Net income increased to $160 million, or 26 cents per share, from $154 million, or 24 cents per share, last year.
For the current quarter, Airbnb issued an upbeat forecast, calling for revenue between $3.54 billion and $3.60 billion. Analysts expected $3.46 billion in revenue. The company lifted revenue guidance for the year to “low to mid teens” growth from a 12% forecast.
Like many travel and airline companies, Airbnb is feeling the pressure from the Iran war, which has spiked oil prices, cancelled flights, and fueled widespread regional uncertainty.
The company expects a 100-basis-point headwind to nights and seats booked in the second quarter, and a deceleration relative to the first quarter, due to the war.
“We remain optimistic about our continued momentum, even as we face tougher comparisons in the back half of this year against the rollout of Reserve Now, Pay Later in 2025 and current headwinds from the Middle East conflict,” the company wrote in a letter to shareholders.
During the quarter, Airbnb said the Middle East conflict contributed to “slightly elevated” cancellations in Europe, the Middle East, Africa and Asia Pacific regions. However, the homestay platform said it’s seeing a “similar dynamic” to last year’s tariff threats, which led to “softness” between some North American regions but an uptick in travel elsewhere.
“We have millions of homes, everywhere in the world, at every price point, and that’s something most travel companies can’t replicate,” Airbnb wrote. “It’s a core reason we’re able to deliver consistent results, even in challenging environments.”
Gross booking value, which tracks host earnings, service fees, cleaning fees and taxes, increased 19% to $29.2 billion, topping a $27.82 billion estimate from analysts.
Nights and seats booked grew 9% to 156.2 million, surpassing LSEG’s 155.77 million estimate. Airbnb also reported its highest first-time booker growth since 2022, spurred by new expansion markets such as Brazil, Japan and India.
Airbnb is also gearing up for a busy summer season, with the upcoming FIFA World Cup slated for 16 cities across Canada, Mexico, and the U.S.
The company said it plans to host the most guests it has ever hosted for an event and that over 100,000 properties have joined the platform since outreach began in October. In February, Airbnb launched a $750 incentive program for new hosts to meet demand for the tournament.
Airbnb said the Milano Cortina Olympics and Paralympic Games earlier this year lured about 200,000 guests, and supply in the host market rose by nearly a third.
Airbnb reported $519 million in adjusted EBITDA, which surpassed a $485 million estimate from LSEG.
