Airbnb (ABNB) reported its Q1 2023 earnings after the bell, reporting a minor beat on revenue and a miss on bookings.
The company’s shares declined about 9% in after-hours trading. Airbnb also announced a new $2.5 billion stock buyback.
Here are the notable numbers from the company’s earnings report, as compared to Wall Street’s expectations as compiled by Bloomberg:
Revenue: $1.8 billion actual versus $1.79 billion estimated
EPS: 18 cents actual versus 12 cents estimated
Nights and Experiences Booked: $121.1 million actual versus $122.4 million estimated
Q2 Revenue Guidance: $2.35-$2.45 billion actual versus $2.42 billion estimated
In an effort to contextualize the miss on nights and experiences booked, the company’s shareholder letter reads: “Nights and Experiences Booked grew 19% in Q1 2023 compared to a year ago. Even with continued macroeconomic uncertainties, we have seen our highest number of active bookers, demonstrating both loyalty from our returning guests and a growing base of first-time bookers. Our current backlog of nights is approximately 25% stronger than a year ago.”
The pressure was on for Airbnb this cycle – other travel names like Expedia (EXPE) and Booking Holdings (BKNG) reported solid results last week.
Looking ahead, Airbnb is looking to increase host supply. “Traveling on Airbnb is mainstream,” the letter reads. “We want hosting to be just as popular. To achieve this, we are raising awareness around hosting, making it easier to get started, and providing even better tools for Hosts.”
The company’s also staring down a key summer travel season, one in which online travel demand has fully found its way forward post-COVID while macroeconomic concerns linger. Airbnb said it has spent substantially on marketing leading up to this summer.
“In 2023, we have pulled forward the timing of marketing spend to be more heavily weighted in the first half of the year as compared to 2022,” according to the company’s shareholder letter. “In addition, we are increasing our brand marketing investment in more countries around the world. We believe spending earlier in the year helps to support the peak summer travel season.”
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.
For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here
Read the latest financial and business news from Yahoo Finance
Source: https://finance.yahoo.com/news/airbnb-earnings-172220887.html