Airbnb revenue grew 67 percent to $ 2.2 billion in the third quarter, the holiday rental giant said in a statement on Thursday.
Airbnb Inc. reported record sales and revenue that beat analysts ’estimates, proving the holiday giant’s resilience even as the Covid-19 delta variant provoked new worries and travel restrictions.
Revenue grew 67% to $ 2.2 billion in the third quarter, Airbnb said in a statement on Thursday. Analysts forecast $ 2.07 billion, according to data compiled by Bloomberg. Net income of $ 834 million far exceeded Wall Street’s expectation of $ 456.2 million. The shares rose in extended trading.
The San Francisco-based company warned in August that the number of nights and experiences booked in the third quarter, typically the busiest period of the year, will decline in total over the same period in 2019, due to the resurgence of Covid cases. . But Airbnb, which dominates the market for alternative housing, has generally fared better than its rivals, profiting because people have chosen to travel closer to home and have often booked longer or more frequent stays to take advantage of flexible long-distance employment policies. In September, Airbnb said it welcomed its billion-dollar guest.
CEO Brian Chesky said the new travel trends born from the Covid era are likely to remain. “But something bigger than a travel bounce is happening,” he said in a letter to shareholders. People “can now work from anywhere, travel anytime and stay longer. For those who can work far away, we believe flexibility will be the most important advantage after compensation.”
Airbnb said it expects fourth-quarter revenue to be $ 1.39 billion to $ 1.48 billion. Analysts were looking for $ 1.43 billion.
Analysts at Cowen Inc. estimates that the category of alternative housing increased to about 33% of global housing dollars from 24% before the pandemic. And Airbnb commands more than 50% of those bookings. In a report before Airbnb’s results were released, analysts said they expect the alternative accommodation category to retain most of its pandemic gains, mitigated somewhat only by the eventual recovery of business travel in a hotel.
Airbnb said gross bookings, which include room nights booked and experiences, more than doubled to $ 11.9 billion. But that missed Wall Street estimates of $ 12.2 billion. Revenues before interest, taxes, depreciation and amortization, excluding certain costs, were $ 1.1 billion. Earnings per share were $ 1.22, beating analysts ’77 cents forecast.
Airbnb is poised to see a further boost in demand after U.S. travel restrictions in the country are lifted on November 8th. Earlier this week, online hotel reservation Trivago posted strong results and indicated vaccine progress in Europe and America as increasing travel. . Booking Holdings Inc., Airbnb’s biggest rival, reported a strong third quarter with gross reserves up 77% from a year earlier. Expedia Group Inc., which owns home-rental website Vrbo, also reported results Thursday.
Airbnb said it is “encouraged to see these new travel trends stretching beyond a summer travel peak, and looking forward to a strong” fourth quarter. By the end of September, Airbnb’s return had more than 40% more nights reserved for Thanksgiving week in the U.S. than in 2019.
The company, founded in 2008, went public last December. Its shares have gained 21% this year.