Airbnb Rg-A has anticipated a strong summer that has allowed it to post strong revenue in the second quarter. It has also announced a $2 billion share buyback program, according to Dave Lee in the Financial Times.
The company on Tuesday reported 103.7 million “nights and experiences” booked on the platform in the April-June period , below the 106.4 million Wall Street expected. Revenue was in line with expectations at $2.1 billion, up 25% from 2021.
The average price per night on the platform was $163.74 , lower than the previous quarter but still 40% above pre-pandemic levels, the company said.
Overall, the gross booking value, the sum total of all nights and experiences booked, was $17 billion. Analysts had expected about $17.1 billion, according to consensus data from FactSet .
The company said it generated $795 million in free cash flow in the quarter, which contributed to $2.9 billion in free cash flow in the last 12 months. Net income was $379 billion , compared to a loss of $68 billion in the same period last year.
Shares of the company fell about 8% in after-hours trading as investors weighed lower-than-expected nights booked against a forecast that suggested a similar rate of booking growth in the current quarter as well.
Saying it was “so confident in our long-term growth and profitability,” Airbnb announced a $2 billion share buyback program. The move may boost the company’s share price, which began trading Tuesday down more than 30% from the start of the year.
Looking ahead, the company said it anticipated its highest revenue in its history in the current quarter, giving a forecast of between $2.78 billion and $2.88 billion , up 24% to 29% from the same period. from last year.
“We are in the midst of our strongest travel peak season yet,” CEO Brian Chesky wrote in a letter to shareholders. “On July 4, we recorded our highest single-day revenue, signaling a strong summer season ahead.”
The number of active listings on the platform remained stable from the previous quarter at 6 million. In May, the company announced that it was withdrawing from China. All listings within the country were removed last month.
While inflation has put pressure on many businesses, the travel industry is still benefiting from a post-Covid surge in demand, with some optimism that business travel is also making a comeback.
Due to its popularity as a way to find places to work remotely or for tourism in less densely populated areas, Airbnb was the first of the major travel companies to stage a takeback.
What has happened to the competition?
Other groups are catching up. Earlier on Tuesday, hotel group Marriott posted a 70% year-on-year rise in revenue in its second quarter. Last week, Hilton similarly beat expectations, with CEO Christopher Nassetta telling investors he saw a significant uptick in the number of bookings related to business meetings. Booking.com will report its earnings on Wednesday, with Expedia scheduled for Thursday.
Chesky had previously said the company believed the rising cost of living would motivate some owners to put rooms on Airbnb.
Airbnb Rg-AIt closed the session on Tuesday at $106.85 and the 70-period moving average is on the last candles.