Airbnb (ABNB) Surpasses Earnings Expectations Despite Forecasting Lower Sales Outlook

• Airbnb (ABNB) reported first-quarter earnings and sales that surpassed expectations, but the stock fell due to lower-than-expected revenue guidance for Q2.
• The company earned 41 cents per share on sales of $2.14 billion for Q1, beating analysts’ projections.
• Airbnb’s total value of nights and experiences booked increased 12% YoY for Q1, to $22.9 billion.

Airbnb’s Q1 results beat expectations, but the company’s lower-than-expected Q2 revenue guidance led to a drop in stock value. The company’s total value of nights and experiences booked increased 12% YoY for Q1.

Airbnb Q2: Holiday Headwinds

Airbnb faces a significant “sequential headwind” in Q2 due to the timing of Leap Day and Easter holiday. However, the company is seeing “robust demand” for summer travel around international events such as the Olympics in Paris and the Euro Cup in Germany. The company also benefited from an April solar eclipse, with over 500,000 guests staying at an Airbnb during the event.

Airbnb Revenue Growth Accelerates

Airbnb’s sales growth increased in Q1 to 18% from 17% YoY growth in Q4 2023. The total value of nights and experiences booked on Airbnb increased 12% YoY for Q1, to $22.9 billion. Bookings growth was strongest in the Asia Pacific and Latin America regions, with North American bookings growth remaining “stable”.

Airbnb Stock: Technical Ratings

Prior to earnings, Airbnb stock fell 1.2% in Wednesday trading. Shares have gained 16% this year compared to an 8.8% gain for the S&P 500. Airbnb stock has advanced 32% in the past 12 months, outpacing a 25% gain for the S&P 500. Airbnb’s IBD Composite Rating was 88 out of a best-possible 99, according to IBD Stock Checkup.

Conclusion

Despite Airbnb’s Q1 results exceeding expectations, the company’s lower-than-expected Q2 revenue guidance has led to a drop in stock value. However, the company’s total value of nights and experiences booked increased 12% YoY for Q1, indicating a positive outlook for the company’s future performance.