Airbnb experienced a decline in shares, with a 6% drop during extended trading on Thursday. This was in response to the company reporting a lower number of nights and experiences booked in the second quarter, falling short of analyst projections. Despite this, Airbnb’s earnings per share exceeded expectations at 98 cents compared to the projected 78 cents, while revenue stood at $2.48 billion, surpassing the anticipated $2.42 billion.
In terms of growth, Airbnb’s revenue saw an 18% increase year over year in the quarter. Net income reached $650 million, a significant rise from the $379 million reported in the same period last year. Gross booking value for the quarter amounted to $19.1 billion, a 12% increase from last year, surpassing the analyst consensus of $18.99 billion.
Despite the positive financial results, there was a slight miss in the number of nights and experiences booked. Airbnb reported 115.1 million bookings for the quarter, an 11% increase from the previous year, but falling short of the projected 117.6 million. However, there was a strong improvement in year-over-year growth throughout the quarter, particularly in North America and EMEA.
Gross booking value per night rose by 1% to $166.01 compared to the previous year. Looking ahead, Airbnb provided guidance for the third-quarter revenue, anticipating a range of $3.3 billion to $3.4 billion, marking a 14% to 18% growth. This surpassed analyst expectations of $3.22 billion. The company also expects a modest sequential acceleration in the number of nights and experiences booked.
CEO Brian Chesky highlighted the potential for Airbnb to expand its services and generate additional revenue. He mentioned the possibility of introducing an advertising platform and matching hosts with individuals who want to rent out their homes but lack the time to host. Chesky also expressed interest in utilizing OpenAI’s GPT-4 language model to enhance customer service and reduce reliance on support agents.
During the quarter, Airbnb introduced Rooms as an option for affordable private bedrooms, with an average price of $67 per night. Despite the drop in shares during after-hours trading, Airbnb’s stock has performed well this year, with a 64% increase, outpacing the S&P 500 index, which has risen by 17% over the same period.
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