Airbnb estimates Q1 revenue to surpass Wall Street expectations

Airbnb Q1 revenue estimates: Short-term rental giant Airbnb anticipates first-quarter revenue to surpass Wall Street expectations, driven by robust cross-border travel and longer-duration bookings. The company foresees continued strong demand for international travel, particularly in Asian and Latin American regions, amidst increasing global air connectivity.

Revenue for the first quarter is projected to range between $2.03 billion and $2.07 billion, exceeding the average estimate of $2.03 billion from London Stock Exchange Group (LSEG). CFO David Stephenson highlighted the importance of investing in under-penetrated expansion countries to sustain growth throughout the year during a call with analysts.

Despite an initial surge of 9 per cent in after-hours trading following a beat in earnings, Airbnb's shares declined by 5 per cent. The company reported fourth-quarter adjusted earnings per share of 76 cents, surpassing estimates of 62 cents. In the same quarter, travellers booked 98.8 million nights and experiences, marking a 12 per cent increase from the previous year, with notable growth in Asia Pacific and Latin America.

Additionally, Airbnb observed a 3 per cent rise in average daily rates and a notable 20 per cent increase in bookings for long-duration trips. Revenue for the quarter exceeded forecasts, reaching $2.20 billion. However, the company reported a net loss of $349 million for the quarter, primarily attributed to outstanding income tax obligations in Italy.

In December, Airbnb announced it would pay $621 million to the Italian Revenue Agency for tax years spanning 2017 to 2021, with potential significant liabilities for 2022 and 2023. Despite this setback, Airbnb remains optimistic about its growth trajectory, buoyed by strong demand and strategic investments in key markets.

(With Reuters inputs)