What happened
You wouldn’t know by looking Airbnbit is (ABNB -1.15%) share price today, but the travel booking platform reported strong second-quarter results late yesterday. The company’s earnings per share (EPS) in the quarter easily beat Wall Street’s consensus estimate, but investors may have focused their attention on the fact that revenue fell below the average estimate. analysts.
Consequently, the travel gear was down 5.6% at 10:41 a.m. ET today.
So what
The company’s earnings were strong in the second quarter, with adjusted EPS of $0.56 beating analysts’ consensus estimate of $0.44. Adding to the good news is the fact that the company’s net income reached $379 million, compared to a loss of $68 million in the year-ago quarter, making the second quarter the most profitable ever. Airbnb story.
Image source: Getty Images.
The company also saw impressive growth in bookings, with the total number of nights and experiences booked increasing 25% year-over-year to 103.7 million. That helped the company’s gross booking value jump 27% from the year-ago quarter to $17 billion.
But despite all the good news, some investors appeared disappointed that the company’s revenue of $2.10 billion (a 58% year-over-year increase) fell slightly below the estimate. Wall Street consensus of $2.11 billion for the quarter.
Investors may also have focused their attention on the company’s free cash flow, which fell sequentially by $1.2 billion to $795 million.
Now what
Management released third-quarter revenue guidance of between $2.78 billion and $2.88 billion. That would represent a roughly 27% year-over-year increase at the midpoint of the forecast and is above analysts’ average estimate of $2.77 billion.
Investors’ negative reaction to Airbnb’s latest financial results could be another reminder that they remain nervous about high-growth companies right now and worried about how a potential economic downturn could affect the company’s business. ‘company.
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