Nov 1 (Reuters) – Airbnb Inc on Tuesday forecast fourth-quarter revenue below market estimates, saying a strong U.S. dollar had begun to put pressure on its business and bookings would moderate after a bumper third quarter.
The vacation rental company expects revenue of between $1.80 billion and $1.88 billion in the fourth quarter, the midpoint of which beat analysts’ expectations of $1.85 billion, according to Refinitiv IBES.
The industry has enjoyed a dramatic recovery this year thanks to the best summer travel season in three years, but it faces risks from soaring global inflation.
San Francisco-based Airbnb saw its highest bookings in the third quarter, with nearly 100 million nights and experiences booked, but it said bookings in the current quarter will be “slightly subdued” compared to these levels.
“As the impact of the pandemic fades but macroeconomic conditions persist, we expect a continued, albeit choppy, recovery in cross-border travel to be a further tailwind for future earnings,” said the company in a letter to shareholders.
Still, it’s “well positioned for the road ahead,” the company added, after beating quarterly revenue estimates.
Major U.S. airlines reported an increase in international travel, particularly to Europe, as travelers took advantage of a stronger dollar, but Airbnb said the majority of travelers in North America and Europe booked flights. national stays.
Airbnb’s average daily rates rose 5% year-over-year to $156 in the quarter as hybrid work fueled demand for its long-term vacation rentals, encouraging hosts to charge more.
The company, which generates half of its revenue from listings outside the United States, said rates were significantly higher excluding the impact of foreign currency fluctuations.
Net profit rose 45.6% to $1.21 billion, or $1.79 per share, while revenue rose 28.9% to $2.88 billion, beating estimates of $2.84 billion. (Reporting by Aishwarya Nair in Bengaluru; Editing by Devika Syamnath)
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