Airbnb beats street expectations but sounds warning about coronavirus variants

Airbnb CEO Brian Chesky (LinkedIn)

Airbnb’s business has rebounded decisively from the depths of the pandemic, but the near-term outlook for the company is still unclear as the virus mutates and reappears.

Airbnb shares fell about 5% in aftermarket trading after the company issued a warning about “volatile and non-linear” year-over-year performance ahead.

“In the near term, we predict that the impact of Covid-19 and the introduction and spread of new variants of the virus, including the Delta variant, will continue to affect overall travel behavior, including frequency and when customers book and cancel, ”the company said in a letter to shareholders.

The company added that it cannot predict how current vaccination efforts, containment of new viral variants and travel restrictions outside the United States in the coming months will affect third and fourth quarter results.

The online hosting platform’s revenue jumped to $ 1.3 billion in the second quarter from $ 335 million a year earlier – the highest quarterly revenue on record by the company and a 299% year-over-year increase.

Q2 revenue was 10% higher than Q2 2019, which the company attributed to higher global supply and demand.

“Now that the second quarter is behind us, we can say with certainty that the travel rebound is upon us and Airbnb is leading the way,” said co-founder and CEO Brian Chesky on a conference call on the results.

Airbnb still reported a net loss of $ 68 million, in part due to increased sales and marketing spending. In the second quarter of 2020, the company recorded a net loss of $ 575 million.

Gross booking value, representing revenue, service charges, cleaning fees and taxes from Airbnb hosts, totaled $ 13.4 billion in the quarter, a 320% year-over-year increase on the other.

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