Airbnb’s stock experienced a significant decline of over 16% in premarket trading on Wednesday following the company’s mixed second-quarter earnings report and a third-quarter revenue outlook that fell short of analyst predictions.
For the second quarter, Airbnb reported revenues of $2.75 billion, exceeding the consensus estimate of $2.74 billion and marking an 11% increase year-over-year. Despite this, the company’s adjusted earnings per share were $0.86, missing the anticipated $0.91.
The platform saw a 9% rise in nights and experiences booked compared to the previous year, which was 1% below expectations. Regionally, Latin America and Asia-Pacific showed the strongest growth in bookings, with increases of 17% and 19%, respectively.
However, Airbnb’s third-quarter revenue forecast did not meet market expectations. The company projects revenue to be between $3.67 billion and $3.73 billion, falling short of the $3.84 billion forecasted by analysts. Additionally, Airbnb anticipates a deceleration in the growth rate of nights booked for the coming quarter.
Brian Chesky, CEO of Airbnb, noted the factors influencing the cautious outlook. “We’re observing shorter booking lead times globally and some signs of slowing demand from U.S. guests,” Chesky said. “Nevertheless, Latin America and Asia-Pacific remain our fastest-growing regions.”
Following the earnings report, RBC Capital Markets maintained a Sector Perform rating on Airbnb’s stock. Analysts highlighted that while growth in Latin America and Asia-Pacific is promising, the signs of reduced demand from U.S. travelers could reinforce the current soft consumer sentiment prevailing among market participants.
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