Airbnb (ABNB) announced strong financial results Tuesday, meeting analysts’ revenue expectations and beating them slightly on earnings per share. However, the company missed expectations for nights and “experiences” booked.
Shares fell 8% in aftermarket trading following the news.
Here’s what Airbnb reported today, compared to Wall Street expectations:
Revenue: $2.1 billion actual vs $2.1 billion forecast
Adjusted EPS: $0.56 actual versus $0.51 expected
Booked nights and experiences: 103.7 million real against 106.1 million expected
Although the measurement of nights and experiences booked was a failure, the figure is still up from 102.1 million in the first quarter of 2022. “Experiences” are activities organized by local experts in a given place, and they can be online or in person, according to company website.
Airbnb also announced a $2 billion share buyback to express confidence in the future and support the company’s long-term growth, according to a statement.
Airbnb shares were down about 35% year-to-date when the market opened this morning.
Inflation has rattled some of the time-tested names in tech, facilitating layoffs and hiring freezes in the sector. Nonetheless, many tech companies have posted decent financial results this earnings season.
Plus, there’s reason to believe that travel-centric names are designed to fare better than some of their counterparts. For example, Uber (UBER) announced yesterday that it was cash flow positive for the first time, which the company partially attributed to travel volume.
Inflation is rising, but so is travel
The US has seen inflation hit historic highs and the Fed has taken action, raising rates further in recent weeks. Democrats have also proposed the Inflation Reduction Actwhich could save the average American household $1,800 in energy costs, according to one analysis.
Simultaneously, the journey experiences a moment, albeit a complicated one. After two years of pandemic, travel agents are reports that they are overwhelmed not only by the number of customers they have contacted, but also by the complexity of the regulations related to COVID-19. Yet companies like Marriott (TUE) beat analyst estimates this quarter on the recovery in travel demand.
We’ll see, but if inflation continues to climb, it could affect this travel boom – and Airbnb and its competitors will be at the heart of the situation as this tension unfolds.
Allie Garfinkle is a senior technical reporter at Yahoo Finance. Find her on twitter @agarfinks.
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