Airbnb shares dive on Q2 results, softening US demand
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The news: Airbnb shares dived in after-hours trading after setting expectations for shorter booking lead times globally and signs of slowing demand in the US.
The numbers: Shares slumped 16.5% by 8:50am AEST in extended trading on the Nasdaq after ending the day 4.12% higher.
The holiday rental marketplace company reported Q2 revenue of USD2.75 billion ($4.22 billion), up 11% compared to the prior corresponding period, primarily driven by the growth of nights stayed on the platform. The total edged out analysts' average estimate of USD2.74 billion, Reuters said.
Adjusted EBITDA of USD894 million represented a 9% rise year on year, with an adjusted EBITDA margin of 33%, flat to the prior year.
However, quarterly profit of 86 US cents per share fell below analysts' estimate of 92 US cents per share, according to LSEG data.
Net income tumbled 14.6% to USD555 million. The company said the drop was mainly due to an increase in income taxes following the release of a valuation allowance on deferred tax assets in 2023, and the utilisation of some of those assets in 2024.
Airbnb's second-quarter net income margin also lowered, down from 26% to 20% year on year.
It expects third-quarter revenue to be between USD3.67 billion and USD3.73 billion, below analysts' estimate of USD3.84 billion.
The context: Airbnb said it expects "sequential moderation" in the year-over-year revenue growth of nights and experiences booked in Q3 relative to Q2.
The company said that it is seeing shorter booking lead times globally and some signs of slowing demand from US guests. A shorter booking window can indicate consumers are booking travel at the last minute, due to increased uncertainty and caution in spending.
The sources: Airbnb earnings release, Reuters
