Airbnb Stock Rises on Strong Revenue and Upbeat Outlook

Airbnb shares climbed 5% in after-hours trading Thursday following a fourth-quarter earnings report that surpassed revenue forecasts and projected a robust start to the new year.

The company reported revenue of $2.78 billion, exceeding the $2.72 billion analysts had anticipated. While earnings per share of 56 cents fell short of the 66-cent estimate, investor focus shifted to the company's forward-looking statements. Airbnb provided first-quarter revenue guidance between $2.59 billion and $2.63 billion, topping the consensus estimate of $2.53 billion. For the full year, the company expects revenue growth of "at least low double digits," aligning with market expectations.

Fourth-quarter revenue grew 12% year-over-year. This marks the 20th time in the past 21 quarters that Airbnb has exceeded Wall Street's revenue projections. Net income was $341 million, down from $461 million a year ago. The company cited a $90 million non-income tax charge and increased spending on new initiatives as reasons for the decline.

Operational metrics were solid. Nights and experiences booked reached 121.9 million, a 10% increase and above estimates. Gross booking value, reflecting total host earnings and fees, jumped 16% to $20.4 billion. Adjusted EBITDA stood at $786 million.

In a recent leadership change, Airbnb appointed Ahmad Al-Dahle, formerly Meta's head of generative AI, as its new Chief Technology Officer, succeeding Ari Balogh.

Source: CNBC