Airbnb reported stronger-than-expected second-quarter earnings on Wednesday, with both revenue and profit beating market estimates, as bookings continued to rise and the company unveiled new services aimed at long-term growth.
Revenue climbed 13% year-on-year to US$3.1 billion, up from $2.75 billion a year ago, exceeding analysts’ forecasts of $3.04 billion.
Net income rose to $642 million, or $1.03 per share, compared with $555 million, or 86 cents per share, in the same period last year. Analysts had expected earnings per share of 93 cents.
“We had a strong Q2, exceeding expectations across our key metrics, which reflects the progress we’ve made against our priorities, including unveiling Airbnb’s next chapter,” said Co-Founder and CEO Brian Chesky.
“We’re excited by the early momentum behind the launch of Airbnb services and reimagined Airbnb experiences, and believe both will be key contributors to long-term growth.”
Airbnb said it recorded 134.4 million nights and experiences booked in the quarter, up 7% from a year earlier, while gross booking value rose to $23.5 billion.
In its shareholder letter, Airbnb acknowledged the challenging economic environment, noting that “a volatile macroeconomic backdrop,” including U.S. President Donald Trump’s sweeping tariff and trade policies, unsettled markets throughout April.
Looking ahead, the company expects third-quarter revenue to range between $4.02 billion and $4.1 billion, with a midpoint of $4.06 billion, only slightly ahead of analysts' consensus of $4.05 billion.
Airbnb also announced an expansion of its share repurchase programme, with a new $6 billion authorisation for Class A common stock.
During the quarter, it repurchased $1 billion worth of shares, and as of June 30, it still had $1.5 billion remaining under a previous buyback plan.
Despite the strong financial results, shares fell 6% in after-hours trading. At the time of writing, Airbnb (NASDAQ: ABNB) was trading at US$122.74, down 5.9% from Wednesday’s close of $130.50.
The company’s market capitalisation stands at $81.75 billion.
