Airbnb Beats Q2 Expectations in the second quarter. However, fears over a reduction in U.S. Airbnb users lowered its stock price.
Airbnb’s (ABNB.O) more robust third-quarter profit projection surprised the market. After-hours trading, the company’s shares fell 1.2% due to worries about U.S. house demand.
Airbnb expects to generate $3.3 billion to $3.4 billion next quarter, according to Refinitiv. This exceeds the $3.22 billion average expert estimate.
The corporation believes more significant domestic and international travel will help it. However, more Americans are traveling abroad, which is hurting U.S.-based enterprises.
Airbnb is seeing favorable passenger behavior changes despite difficulties. Cross-border sales rose 16% year-over-year in the second quarter. Urban migration and city nights booked increased by 13% last year.
The firm said, “We still see signs of people traveling to cities, which has always been one of our best business areas.”
The global average daily rate (ADR) rose 1% to $166. Airbnb indicated that they are preventing large price spikes to appease consumers. North American prices fell 1% daily.
More individuals travel abroad as epidemic restrictions are relaxed, and the U.S. currency rises. American hotels have mostly stayed the same.
Airbnb is popular in cities, but in North America, bookings increased far quicker from the first to the second quarter than merely the first quarter.
Airbnb’s CFO, David Stephenson, told investors, “I believe this demonstrates how strong and tough the consumers in North America are, and we’re still seeing that strength as we move into the third quarter.”
Airbnb’s second-quarter revenue rose 18.1% to $2.48 billion. The $2.42 billion analysts predicted was exceeded. Bookings increased 13% to $19.1 billion, as expected.
Airbnb earned 98 cents per share, above market expectations of 78 cents.
Booking Holdings (BKNG.O), an online travel operator, rose 10.25% in after-hours trading after raising its annual projection to capitalize on foreign tourists visiting Europe.