Airbnb Misses Revenue Estimates in Q3 Report
- Airbnb reported third-quarter revenue and earnings per share lower than analyst estimates.
- The company achieved significant year-over-year growth, with gross booking values also rising.
- Despite the misses, Airbnb maintains an optimistic outlook for the fourth quarter.
Airbnb Inc. announced its financial results for the third quarter of 2024, revealing a total revenue of $3.7 billion, which fell short of market expectations that forecasted $3.72 billion. The earnings per share also missed estimates, coming in at $2.13 instead of the anticipated $2.16. Despite the lower than expected performance, the company did see a 10% year-over-year increase in total revenue, and gross booking value exhibited a similar growth, totaling $20.1 billion. The number of nights and experiences booked reached 122.8 million, marking an 8% year-over-year rise. Notably, Airbnb reported generating $1.1 billion in free cash flow for the quarter and ended it with a strong cash position of $11.3 billion. The company's management expressed confidence about a strong demand trend heading into the fourth quarter, citing robust momentum from September. Looking forward, Airbnb projects its fourth-quarter revenue to be between $2.39 billion and $2.44 billion, expecting an increase in nights and experiences booked compared to the prior quarter. This optimistic outlook was reinforced by the company’s anticipated adjusted EBITDA margin of around 35.5% for the full year. In summary, while Airbnb's third-quarter results did not meet analysts' expectations, the company demonstrated strong year-over-year growth and remains confident about the fourth quarter's performance.