Airbnb (ABNB.O) raised its first-quarter revenue forecast on Tuesday, citing strong cross-border travel and longer-duration bookings.
This year, with the improvement of global air connectivity, international travel demand is projected to remain strong. Tourists are expected to flock to Asian and Latin American destinations, while domestic travel demand in North America is set to the plateaus.
The San Francisco-based company anticipates revenue between $2.03 billion and $2.07 billion, surpassing the average LSEG estimate of $2.03 billion.
“Making sure we invest in these expansion countries where we’re under-penetrated, I think that’s going to continue to drive growth for us for the rest of the year,” CFO David Stephenson said on an analyst call.
With over 5 million hosts and 7.7 million active listings, Airbnb anticipates a slowdown in the growth rate of nights booked in the first quarter, compared to the fourth quarter of 2023.
After exceeding expectations in earnings, Airbnb shares experienced a 5% decline in extended trading, reversing a previous 9% gain. Fourth-quarter adjusted earnings per share, excluding non-recurring tax items, were 76 cents, higher than expectations of 62 cents.
During the quarter ended December 31, bookings for nights and experiences increased by 12% compared to the previous year, reaching 98.8 million. The most significant growth was observed in Asia Pacific and Latin America. Nights booked in China increased by nearly 90% year on year.
The average daily rate, or the cost per night, increased by 3%, while nights booked for long-duration trips increased 20%. Revenue came in at $2.20 billion, exceeding the previous forecast.
However, the company reported a $349 million quarterly net loss due to outstanding income tax obligations in Italy.
Airbnb announced in December that it would pay $621 million to the Italian Revenue Agency for the tax years 2017 to 2021, warning that the amounts due in 2022 and 2023 could be “material.”
Click here for more Business news.