Airbnb reports rising revenue as travel rebounds
Airbnb said Tuesday that revenue in the just-ended quarter topped $2 billion as people shrugged off pandemic concerns and enjoyed a banner travel season.
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The home rental platform posted net income of $379 million in what it billed as the second most profitable quarter in its history.
In a sign of confidence in its future, the San Francisco-based company announced that it would spend $2 billion on stock buybacks.
“At the height of the pandemic, we made many tough choices to reduce our expenses, making us a leaner and more focused company,” the company said in a letter to investors.
“Airbnb is well positioned for all that lies ahead.”
More than 103 million nights and travel “experiences” arranged by Airbnb were booked in the quarter, setting a new record, despite inflation and other economic challenges, the company reported.
Revenue of $2.1 billion in the quarter was 58% higher than the same period a year earlier.
“We are in the midst of our strongest travel season yet,” Airbnb said in the letter.
“On July 4, we recorded our highest ever daily turnover, signaling the strong summer season ahead.”
Airbnb expects to set a new revenue record in the current quarter, bringing in between $2.78 billion and $2.88 billion.
“We have almost every type of space in almost every place, so no matter how travel changes, we’re able to adapt,” Airbnb said.
“Regardless of the economic environment, our travelers come to Airbnb because they find great value and our guests can earn additional income.”
The optimism came despite Airbnb shutting down its China operations earlier this year as the pandemic shutdowns show no sign of ending there.
In July, Airbnb stopped booking guest stays or “experiences” in China, instead focusing on helping people there with travel plans outside the country, the company said in a statement. results report.
“We made this difficult decision due to the costly and complex challenges of operating in the country, exacerbated by severe Covid lockdowns,” Airbnb said.
“We continue to expect Asia-Pacific, including outbound travel from China, to represent a significant growth opportunity for Airbnb over the long term.”
Airbnb launched operations in China six years ago and has booked stays there for some 25 million guests. Reservations at residences in China have accounted for just one percent of Airbnb bookings in recent years, the company reported.
Airbnb faces strong competition in China.