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Airbnb (ABNB) earnings Q2 2022

Published:

Brian Chesky, CEO and Co-founder of Airbnb

Mike Segar | Reuters

Airbnb beat Wall Street estimates for earnings and posted revenue that was according to estimates for the second quarter. The corporate also announced a $2 billion share buyback program.

Shares were down about 9% after hours, despite what gave the impression to be a powerful report, suggesting Wall Street was searching for faster growth and a revenue beat. The corporate also said it was impacted by flight cancellations at the tip of the quarter.

Listed below are the important thing numbers:

  • Earnings per share: $0.56 vs. $0.43 expected by analysts, in keeping with Refinitiv.
  • Revenue: $2.10 billion vs. $2.11 billion expected by analysts, in keeping with Refinitiv.

Airbnb, like Uber, benefited from a rise in consumer spending on activities versus goods. Revenue jumped 58% year-over-year to $2.1 billion helping to drive the corporate’s most profitable second quarter to this point. Still, that growth was slower than it was last quarter when revenue surged 70% over the primary quarter of 2020.

Airbnb reported net income of $379 million, up from a lack of $68 million within the year-ago quarter.

The corporate said it tightened spending at the peak of the pandemic, which helped make it leaner and more focused, and that it’s adapted its business as travel continues to alter. However it wasn’t entirely immune from a surge in canceled flights.

“We did see some elevated cancellations behind the quarter relative to our forecast,” Airbnb CFO Dave Stephenson said on a call with investors. “We consider that a few of the elevated cancellations were related to flight cancellations world wide, nevertheless it was mostly in North America towards the tip of Q2 2022”

Airbnb anticipates record revenue in the course of the third quarter despite headwinds from foreign exchange fluctuations, specifically the weakening euro versus the dollar. It guided third quarter revenue to land between $2.78 billion and $2.88 billion, ahead of StreetAccount’s $2.77 billion estimate. The corporate said it broke a single-day revenue record on July 4, which it says signals a powerful summer season ahead.

Airbnb’s free money flow declined quarter over quarter, which might be one reason shares are within the red.

Read more about tech and crypto from CNBC Pro

CEO Brian Chesky addressed that concern with CNBC’s Jim Cramer on “Mad Money.”

“Free money flow was $795 million, and we had adjusted EBITDA of $711 million.. should you exclude FX, that is $764 million. So what we’re actually seeing is a few metronomic improvements in our free money flow 12 months over 12 months and I expect that the approaching quarter goes to be extremely strong for us.”

For the second quarter, Airbnb reported greater than 103 million nights and experiences booked. It’s the corporate’s largest quarterly number ever, but fell short StreetAccount estimates of 106.4 million nights and experiences booked. 

Gross booking value, which Airbnb uses to trace host earnings, service fees, cleansing fees and taxes, totaled $17 billion within the second quarter, up 27% 12 months over 12 months. That was slower than the 67% growth posted in the primary quarter.

And while many firms are calling employees back to the office, long-term stays, where guests stay in a house for 28 days or more, remained Airbnb’s fastest-growing segment, with 25% growth over the year-ago quarter.

The corporate said gross nights booked for cross-border travel surpassed pre-pandemic levels in the course of the quarter and doubled in comparison with the identical quarter last 12 months.

Average each day rates rose 40% compared to pre-pandemic levels in 2019, reaching $164. That is up 7% from the identical quarter a 12 months ago, excluding the results of currency fluctuations. The corporate anticipates ADR to be flat within the third quarter on a year-over-year basis.

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