Homestay marketplace Airbnb Inc (NASDAQ: ABNB) has reported strong fourth-quarter 2024 financial results.
Airbnb recorded revenue of US$2.5 billion, up 12% in Q4 compared to the same period in 2023 which the company says was primarily driven by the growth of nights stayed on the platform.
The figure also came in above Wall Street's expectation of $2.42 billion, based on a survey by LSEG.
The company achieved a net income of $461 million, representing a 19% margin, compared to a net loss of $349 million in Q4 2023.
In a statement to shareholders, the company said it benefitted from resilient travel demand in the fourth quarter, fueled by an "acceleration in growth" in nights and experiences booked, particularly in Asia and Latin America.
The company reported 111 million nights and experiences booked, up 12% from a year ago.
Q4 adjusted EBITDA grew 4% to $765 million, with a 31% margin up 4% year-over-year.
Earnings per share came in at $0.73 compared to the $0.58 expected from analysts.
The accommodation giant demonstrated robust cash flow generation with Q4 free cash flow (FCF) of $458 million (18% margin) and full-year FCF of $4.5 billion (40% margin).
Airbnb also continued its substantial share repurchase program, buying back $838 million of stock in Q4 and $3.4 billion throughout 2024, reducing fully diluted shares from 676 million to 658 million.
The outlook from the company for 2025 is positive, expecting to deliver revenue of $2.23 billion to $2.27 billion, representing year-over-year growth of 4% to 6%, or 7% to 9%.
The company also said technology advancements and product updates in recent years have driven higher conversion rates.
They teased new additions coming launching in May this year, but no further details have been disclosed.
“Airbnb is a fundamentally stronger company today than it was several years ago,” said the release.
“We’re continuing to build on this momentum in 2025, executing a multi-year strategy to perfect the core service, accelerate growth in global markets, and launch and scale new offerings.”
Shares surged 14% after hours on Thursday, as of the close the stock was still down 10.6% over the past 12 months.
At the time of writing, Airbnb was trading at US$141 up 0.4% from the previous close at $140.52. The stock reached a day low of $138.76 and a day high of $141.94. Airbnb’s market capitalisation stands at US$88.12 billion.
