Rental platform Airbnb reported its quarterly earnings after the bell on Wednesday, which topped the estimations of analysts. Still, the company offered a weaker-than-expected forecast for the second quarter, which sent its stock down almost 8% in after-hours trading.
Thanks to a “robust demand for travel,” Airbnb posted $2.14 billion in revenue, which is 18% higher compared to revenue of $1.82 billion in the same period in 2023. This was enough to comfortably surpass the $2.06 billion expected by Wall Street analysts. Additionally, the company had a net income of $264 million, or 41 cents per share, versus 24 cents expected.
While Airbnb expects that the demand for vacation rentals will remain high leading into the summer, it remains conservative about its revenue in the second quarter. It forecasts revenue between $2.68 billion and $2.74 billion, while analysts expect $2.74 billion for Q2. According to the company, its forecast is based on currency exchange rates and the “timing of Easter,” which boosted the Q1 earnings but might be the current quarter.
Airbnb stock closed on Wednesday at $157.90 per share, being 1.20% down for the day but 17.42% higher year-to-date. After the weak forecast for Q2 was made public, Airbnb shares dived 7.92% to $145.40.
