Although the short-term rental company Airbnb (Airbnb stock at -9.56%) reported better-than-expected third-quarter financial results, shares were trading lower due to slightly subpar fourth-quarter projections.
Airbnb (NASDAQ:ABNB) reported revenue of $2.9 billion for the quarter, slightly higher than the company’s guidance range of $2.78 billion to $2.88 billion and Wall Street’s consensus forecast of $2.84 billion. This is an increase of 29% from a year ago—or 36% when currency exchange rates are taken into account. Profits came in at $1.79 per share, exceeding the $1.47 expectation.
Gross booking value increased by 29% to $15.6 billion, or by 36% when currency exchange rates were considered. This number increased from the quarter-over-quarter growth rate of 27%, or 34%, when the currency was considered. The number of nights and experiences reserved was 99.7 million, up 25% from the second-quarter total.
Earnings before interest, taxes, depreciation, and amortization, or adjusted Ebitda, were $1.5 billion, up 32% or 44% when the currency was considered. The adjusted Ebitda margin increased from 49% to 51%, exceeding Airbnb’s projection of a flat or declining number.
Airbnb (Airbnb stock) anticipates sales of $1.8 billion to $1.88 billion for the fourth quarter, up 17% to 23%; when currency is considered, the business expects 23% to 29% growth. The forecast falls just short of the consensus estimate of $1.85 billion at the midpoint of the range. According to Airbnb, the “take rate,” or revenue as a percentage of gross bookings, was also expected to fall from its third-quarter level. That was “consistent with past seasonality,” the business said.
Airbnb reported “promising trends in cross-border travel, increasing interest in urban stays, stabilizing cancellations, as well as a robust backlog of prospective bookings” one month into the current quarter.
The company anticipates that reservations for nights and experiences would “moderate marginally” from those for the third quarter, with pressure on average daily rates coming from both the business mix and the exchange rate. Adjusted Ebitda is expected to “be up considerably” by the company from a year ago, with an adjusted Ebitda margin in line with or slightly higher than the 22% recorded a year ago.
In a statement to shareholders, the business stated, “We feel we’re well-positioned for the road ahead, notwithstanding persistent macro concerns.”
In early trade, Airbnb fell 5.6% to $103.
Featured Image – Megapixl © Mohammedsoliman4
Author Valerie Remorosa 
