Airbnb reported third-quarter earnings results on Thursday (Friday AEDT), with earnings coming in slightly below expectations, while revenues were buoyed by significant demand in its Asia-Pacific and Latin American markets.
The global vacation rental giant's revenue reached US$3.73 billion (A$5.59 billion), a 10% increase from the prior year, slightly ahead of $3.72 billion forecast.
Airbnb reported diluted earnings of $2.13 per share, slightly below expectations of $2.14 and down from last year’s $6.63 per share, which included one-time tax-related gains.
Airbnb shares fell by 1.7% in after-hours trading.
As part of its strategy to expand internationally, Airbnb saw robust growth in nights booked across emerging markets, particularly in Asia-Pacific, which rose by 19%, and Latin America, up 15%.
Overall, nights and experiences booked increased by 8% year-over-year to 122.8 million, with growth in these expansion markets outpacing core markets twofold.
Airbnb’s gross booking value for the quarter reached $20.1 billion, also up 10% year-over-year.
Looking forward, the San Francisco-based company expects fourth-quarter revenue to range between $2.39 billion and $2.44 billion, marking an 8% to 10% increase from last year.
Airbnb anticipates further year-over-year growth in nights booked during this period.
However, the company projects a slight dip in its core profit margin in the fourth quarter due to heightened marketing and product development investments.
Average daily rates (ADR) are expected to rise modestly from the previous year, with the third quarter’s ADR standing at $164, a 1% increase.
As at 8:40 am (AEDT), Friday, November 8, Airbnb (ABNB) stock was trading at $144.71, showing a decrease of 1.8% from the previous close of $147.37. The stock reached a day low of $141.7 and a day high of $148.64. Airbnb's market cap stands at $94.56 billion.