Airbnb beats expectations, but stock drops on US travel uncertainty
Airbnb said it has seen softness in demand for travel in the US, but that was offset by international demand.
Short-term rental giant Airbnb is down more than 5% in after-hours trading as it cited “softer results” in the US, despite reporting quarterly results that beat analysts’ estimates thanks to steady demand for international travel and more in-app booking.
Airbnb reported adjusted earnings per share of $0.25, compared to the $0.23 analysts polled by FactSet were expecting. It also reported $2.27 billion in revenue, slightly higher than the $2.26 analysts were penciling in.
Gross bookings — the amount of money people spent on the platform — came in at $24.5 billion for the quarter, in line with the Street’s estimates and up from $22.9 billion in the same period last year. Airbnb also reported some payoff for work it’s done improving its mobile app, with a growing share of nights booked coming from the app.
The company said it saw strong demand for travel in Latin America, its fastest-growing region, for Easter. In the US, however, the company saw “relatively softer results, which we believe has been largely driven by broader economic uncertainties.”
Airbnb said it expects to make between $2.99 billion and $3.05 billion in revenue in the second quarter of 2025, in line with analysts’ estimates. “By offering guests a wide range of listings around the world and providing hosts economic opportunity, we believe our model can adapt to periods of consumer uncertainty,” the company said.
It also bought back $807 million in shares in the first quarter, leaving $2.5 billion remaining under its $6 billion repurchase authorization.
Airbnb’s peer, Booking Holdings, also reported results on Wednesday that solidly topped analysts estimates, but still saw its shares decline as investors worry about what the macro environment could mean for travel for the rest of the year.
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