- Airbnb Inc. (ABNB) stock rallied more than 14% after reporting Q4 earnings of $0.73 per share, beating consensus by $0.15, with revenues up nearly 12% to $2.48 billion, surpassing expectations.
- Nights and Experiences Booked grew by 12% year-over-year to 111 million, with December showing the highest booking growth for 2024; however, Q1 2025 revenue guidance was set lower at $2.23 – $2.27 billion, below the $2.3 billion consensus.
- Excluding calendar and FX effects, Airbnb anticipates a 10-12% revenue growth for Q1 2025, with stable bookings growth compared to last year after adjusting for Leap Day, but expects a slight decline in ADR due to FX headwinds.
Airbnb Inc. (ABNB) experienced a significant rally in its stock price, surging $20.21 or 14.33% to $161.40 in after-hours trading on Thursday, driven by a robust fourth-quarter earnings report. The company reported earnings of $0.73 per share, exceeding the consensus estimate by $0.15, while revenues increased by 11.8% year-over-year to $2.48 billion, surpassing the expected $2.42 billion. This performance was underpinned by a 12% increase in Nights and Experiences Booked, reaching 111 million, with December standing out as the month with the highest year-over-year growth in bookings for 2024.
Despite this strong finish to the year, Airbnb provided a more cautious outlook for the first quarter of 2025. The company forecasted revenues between $2.23 billion and $2.27 billion, which translates to a 4-6% year-over-year increase, below the consensus expectation of $2.3 billion. This guidance reflects adjustments for calendar effects and foreign exchange (FX) headwinds, which, when excluded, would project a healthier growth rate of 10% to 12%.
The expectation for Nights and Experiences Booked in Q1 2025 is set to remain relatively stable compared to the previous year’s first quarter, once the influence of Leap Day in 2024, which added about one percentage point to growth, is accounted for. Additionally, Airbnb anticipates a slight decline in Average Daily Rate (ADR) year-over-year, attributing this primarily to FX headwinds.
These projections suggest that while Airbnb is on a solid growth path, external factors like currency fluctuations and calendar anomalies could temper its immediate future performance. The company’s focus seems to be on managing these variables while continuing to capitalize on the recovering travel sector. Airbnb’s strategy includes enhancing its platform’s user experience, expanding its global presence, and adapting to changing travel trends, such as the rise in experience bookings alongside traditional accommodations.
This mixed outlook for Q1, juxtaposed with a strong Q4 performance, illustrates the dynamic nature of the travel industry post-pandemic. Airbnb’s ability to navigate through these challenges, leveraging its vast network of hosts and guests, will be crucial. As travel demand evolves, Airbnb’s adaptability in offering diverse and localized experiences could not only stabilize its growth but also potentially accelerate it beyond these short-term headwinds.
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