- Profits for the quarter rose 280% year over year and saw the company record its highest ever revenue and net income.
- Airbnb said it expects vaccination progress and international travel recovery to increase in the fourth quarter and into the new year.
Airbnb on Thursday reported strong profit growth and a beat on revenue estimates for the third quarter, as the company continues its recovery from Covid-19 and travel returns as vaccination efforts around the world.
Shares rose more than 3% in after-hours trading before turning gains.
Here’s how Airbnb fared compared to Wall Street’s estimates:
- earnings per share: $1.22, not comparable to estimates
- Revenue: Refinitiv. $2.24 billion versus $2.05 billion estimated by
The company booked 79.7 million nights and experiences in the third quarter, down slightly from the second quarter. It was still up 29% year-on-year even when the travel industry was battered by Covid-19. According to StreetAccount, analysts had forecast 80.8 million nights and experiences for the quarter.
The company also saw its highest ever revenue and net income in the third quarter, CFO Dave Stephenson said on a call with analysts, even though urban and cross-border travel hasn’t returned to pre-pandemic levels. Revenue came in at $2.24 billion, up 67% year over year. Net income increased 280% on a year-over-year basis to $834 million.
Airbnb expects revenue between $1.39 billion and $1.48 billion in the fourth quarter, in line with analysts’ expectations.
in his third quarter letter to shareholders, Airbnb said recovery trends continue to vary regionally and by vaccination rates and travel restrictions. But the company said it is “uniquely positioned for this travel revolution.” Airbnb said that in North America alone, bookings for nights and experiences were up 10% from the same quarter in 2019.
airbnb previously told in its second-quarter letter to shareholders that it expected a Covid delta version To influence travel behaviour. The company had also expected that the year-on-year comparison for variant nights and booked experiences and gross booking value would be “more volatile and non-linear”.
Gross booking value — which the company uses to track host income, service fees, cleaning fees and taxes — totaled $11.89 billion in the third quarter. It was up about 48% year over year, but fell slightly below the StreetAccount forecast of $12.31 billion.
Average daily rates for the company fell from about $161 last quarter to $149. This is about 15% higher than the same period last year.
The company said it expects a strong fourth quarter and expansion of travel demand through 2022. It also expects Nights and Experiences booked for the fourth quarter to “significantly outperform” over the same period last year.
“Given 2022, vaccination progress and the recovery of international travel in Q4 2021 will be key development themes in the new year,” the company wrote.