Airbnb misses on earnings but squeaks in a revenue beat

Airbnb reported third-quarter earnings on Thursday that were shy of analyst estimates, though it squeaked in a small revenue beat. The stock fell about 3% in after-hours trading.

Here’s how the company did:

• Earnings per share: $2.13 vs. $2.14 expected by LSEG
• Revenue: $3.73 billion vs. $3.72 billion expected by LSEG

Revenue increased 10% from $3.4 billion a year earlier. Airbnb reported net income of $1.37 billion, or $2.13 per share, compared with $4.37 billion, or $6.63 per share, in the same period last year. The company noted a $2.8 billion tax benefit during the third quarter of 2023.

The company expects to report revenue between $2.39 billion and $2.44 billion during its fourth quarter. Analysts were expecting $2.42 billion for the period, according to LSEG.

In a letter to shareholders, Airbnb said it is focused on expanding beyond its core markets and into under-penetrated markets around the globe. The average growth rate of nights booked in Airbnb’s expansion markets was double that of its core markets on an origin basis during the third quarter, the company said.

“We’ll remain focused on accelerating growth while preparing for Airbnb’s next chapter, which will take us beyond accommodations,” Airbnb said. “You’ll see more on this next year.”

Airbnb said adjusted EBITDA for the third quarter was $2 billion, up 7% year over year. Analysts polled by StreetAccount were expecting $1.86 billion.

Gross booking value, used by Airbnb to track host earnings, service fees, cleaning fees and taxes, totaled $20.1 billion in the third quarter. That’s above the $19.9 billion expected by analysts, according to StreetAccount. The company reported 123 million nights and experiences booked, up 8% from a year ago and higher than the 121.4 million expected by StreetAccount.

Airbnb said it saw hosting growth across all regions and market types during the third quarter. The company said in its shareholder letter that it has more than 8 million active listings and has worked to improve listing quality. Airbnb has removed more than 300,000 listings since last year, the company said.

Average daily rates increased 1% from a year ago to $164 in the third quarter, the company said.

The company will hold its quarterly call with investors at 4:30 p.m. ET.