Airbnb reported a slimmer-than-expected net loss and higher revenue than expected for its first quarter, saying it sees substantial demand for travel ahead of the summer.
The short-term rental company (ticker: ABNB) reported a net loss of $18.8 million, or three cents a share, a stronger performance than the loss of 25 cents a share Wall Street analysts polled by FactSet were expecting. Revenue soared 70% year over year to $1.51 billion, while analysts had penciled in $1.45 billion.
Airbnb stock, which fell 5% during Tuesday’s session, recovered some ground after the report with a 3.5% jump in late trading. The stock is down about 13% year to date.
In a letter to shareholders, the company said a recovery in travel during 2021 accelerated during the first quarter of 2022, with the number of nights and experiences booked to rise beyond prepandemic levels.
For the second quarter, the company expects revenue between $2.03 billion and $2.13 billion. Even the low end of that range is ahead of Wall Street’s prior forecast for $1.97 billion.
“Heading into peak travel season in Q3 2022, we are seeing substantial demand for summer travel months in EMEA and North America,” the company added. “We are also seeing higher than historical demand for Q4, which indicates that consumer confidence to travel remains strong beyond the summer months.”
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Credit: www.marketwatch.com /