Airbnb (ABNB) reported strong third-quarter earnings report that mostly beat the analyst’s expectations, as it was the most profitable quarter in the company’s history. The company noted that the results would have been even better but the strong dollar affected the bottom line. We have already seen the same issue in Google, Amazon and Meta earnings. Results were boosted by higher bookings in metropolitan cities, strong international travel and longer stays.
Earnings per share were reported at $1.79 topping the expectations of $1.47 per share. The Net profit increased by 45.6% to $1.21 billion. In the third quarter of the previous year, the company posted a net profit of $834 million and earnings per share of $1.22.
Airbnb revenue rose 28.9% to $2.88 billion, also beating the Wall Street forecasts of $2.84 billion. The revenue in Q3 2021, was at $2.24.
Adjusted EBITDA came at $1.5 billion, an all-time high for Airbnb. The analyst’s estimate was for an EBITDA of $1.39 billion.
Free cash flow rose 80% to $960 million. The expectations were for $1.1 billion in free cash flow.
Gross bookings (GBV) increased 31% to $15.6 billion above the expectations of $15.35 billion. The third quarter is usually the stronger quarter because of the summer vacations. Stays of 28 nights accounted for 20% of bookings in Q3.
Experiences and nights booked rose 25% to $99.7 million below the forecasts of $100.68 billion, which was the highest-ever quarterly bookings.
Asia Pacific region nights and experiences bookings surged 65% as the pandemic restrictions eased.
Active listings around the globe increased by 15%.
The average daily rate climbed 5% to $156 topping the Wall Street estimates of $153.20.
Airbnb now forecasts fourth-quarter revenue between $1.80 billion to $1.88 billion, while analysts had forecast $1.86 billion. The company also said that the Q4 bookings will “slightly moderate” from Q3 levels.
Airbnb stock is down over 34% since the beginning of the year. The market capitalization now stands at $69.35 billion. ABNB has a 52-week trading range between $86.71 and $212.58. The stock price is at a critical point as it stands at the 100-day moving average, a break below would clearly deteriorate the technical picture which might drive the price to lower levels.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).