Airbnb posts $379 million Q2 profit on record bookings – FOX13 News Memphis
Airbnb said on Tuesday it earned $379 million in the second quarter from record bookings and rising rates, and the short-term rental giant announced a plan to spend up to $2 billion to buy his own actions.
The results showed a reversal of losses from the second quarter of last year and 2019.
Airbnb said its third-quarter revenue will beat current analyst forecasts, although second-quarter gross bookings were below Wall Street expectations.
Airbnb has taken advantage of increased travel and the exodus of office workers, freeing them to work just about anywhere they can get internet access.
Second-quarter bookings were about a quarter higher than last year and 2019, but their gross value of $17.0 billion was slightly lower than analysts’ forecast of more than $17.1 billion, according to FactSet. Chief Financial Officer Dave Stephenson said the gross value of bookings continued to rise sharply from 2019.
The San Francisco-based company said customers were making more international bookings. Listings outside major cities were up nearly 50% from the second quarter of 2019, and Airbnb said urban listings increased from the previous three months.
Stephenson said Airbnb saw a higher number of cancellations at the end of the quarter, which he blamed on airlines canceling flights. Most of the cancellations have been in North America, Stephenson said. He did not give numbers.
Airbnb said the daily rate paid by renters averaged $164, up 1% from a year ago and 40% from the same period in 2019. The shift in bookings – from cities to less populated areas such as beach and mountain destinations, and to renting a whole house – has helped drive prices up. Stephenson, however, said it was now just price appreciation, which “has been stickier than we expected maybe six months ago.”
Airbnb said that excluding stock-based compensation and certain other costs, it earned 56 cents per share.
Revenue increased 58% from a year earlier and 73% from the second quarter of 2019, to $2.10 billion. Analysts had expected revenue of $2.11 billion, according to a FactSet survey.
Airbnb said third-quarter revenue would be between $2.78 billion and $2.88 billion on “slightly higher” average rental prices. Analysts expect $2.77 billion.
Airbnb’s stock fell more than 8% in about two hours of extended trading.
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