Airbnb beats estimates as company resists Delta variant | Tourism News

Airbnb’s revenue rose 67% to $2.2 billion in the third quarter, the vacation rental giant said in a statement Thursday.

Through Bloomberg

Airbnb Inc. posted record sales and profits that beat analysts’ estimates, proving the vacation rental giant’s resilience even as the delta variant of Covid-19 sparked new concerns and travel restrictions.

Revenue rose 67% to $2.2 billion in the third quarter, Airbnb said in a statement Thursday. Analysts expect $2.07 billion, according to data compiled by Bloomberg. Net income of $834 million far exceeded Wall Street expectations of $456.2 million. Shares rose in extended trading.

The San Francisco-based company warned in August that the number of nights and experiences booked in the third quarter, typically the busiest time of the year, would be lower than the total during the same period in 2019, due of the resurgence of Covid cases. . But Airbnb, which dominates the alternative housing market, has generally fared better than its competitors, taking advantage of the fact that people have chosen to travel closer to home and have often booked longer or more frequent stays to take advantage flexible remote work policies. In September, Airbnb said it welcomed its billionth guest.

Chief executive Brian Chesky said new travel trends born out of the Covid era are likely here to stay. “But something bigger than a travel rebound is happening,” he said in a letter to shareholders. People “can now work from anywhere, travel anytime and stay longer. For those who can work remotely, we believe flexibility will be the most important benefit after compensation. »

Airbnb said it expects fourth-quarter revenue to be between $1.39 billion and $1.48 billion. Analysts were looking for $1.43 billion.

Cowen Inc. analysts estimate that the alternative hosting category has grown to around 33% of global hosting dollars, up from 24% before the pandemic. And Airbnb controls over 50% of those bookings. In a report ahead of Airbnb’s earnings release, analysts said they expected the alternative lodging category to retain most of its pandemic gains, somewhat tempered only by the eventual recovery in travel from oriented hotels.

Airbnb said gross bookings, which include room nights booked and experiences, more than doubled to $11.9 billion. But that missed Wall Street’s estimate of $12.2 billion. Earnings before interest, taxes, depreciation and amortization, excluding certain costs, was $1.1 billion. Earnings per share were $1.22, beating the 77 cents analysts had predicted.

Airbnb is set to see a further surge in demand after U.S. restrictions on travel to the country were lifted on Nov. 8. Earlier this week, online hotel booking site Trivago reported strong results and highlighted vaccine advances in Europe and the Americas as increased travel. . Booking Holdings Inc., Airbnb’s biggest rival, had a strong third quarter with gross bookings up 77% from a year earlier. Expedia Group Inc., owner of home rental site Vrbo, also reports results on Thursday.

Airbnb said it was “encouraged to see these new travel trends expand beyond the summer travel peak, and looks forward to a strong fourth quarter.” At the end of September, Airbnb’s order book had more than 40% more nights booked for Thanksgiving week in the United States compared to 2019.

The company, founded in 2008, went public last December. Its shares have gained 21% this year.

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