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Airbnb (ABNB - Free Report) reported earnings of 18 cents per share for first-quarter 2023, which beat the Zacks Consensus Estimate by 80%. The figure compared favorably with a loss of 3 cents per share reported in the year-ago quarter.
Revenues of $1.82 billion increased 20% year over year on a reported basis and 24% on an FX neutral basis, respectively. The top line also surpassed the Zacks Consensus Estimate of $1.79 billion.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Growing Gross Booking Value (GBV) was another tailwind.
Increasing gross nights booked, owing to solid momentum across high-density urban areas, was a positive. Rising guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Nights and Experiences Booked were 121.1 million, up 19% on a year-over-year basis. The metric was driven by strong performances in all regions, especially the Asia Pacific.
GBV amounted to $20.4 billion, which rose 19% from the prior-year quarter’s reported figure.
GBV per Night and Experience Booked (or Average Daily Rates) was $168, which was flat on a year-over-year basis.
In terms of trip length, the category of long-term stays of 28 days or more, which accounted for 18% of overall gross nights booked, was a positive. Further, 45% of gross nights booked came from stays of at least seven nights.
In the reported quarter, gross nights booked in high-density urban areas represented 48% of overall gross nights booked.
Cross-border travel for the first quarter accounted for 45% of total gross nights booked, up from 39% in the same quarter last year.
Operating Results
Adjusted EBITDA was $262 million, up 14% from the prior-year quarter.
Operations and support costs, product development expenses, and general and administrative expenses were $282 million, $420 million and $243 million, increased 21%, 15.7% and 15.7%, respectively, year over year. Sales and marketing expenses rose 30.4% from the year-ago quarter to $450 million.
For the first quarter, Airbnb reported an operating loss of $5 million, which was flat year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash and cash equivalents, and short-term investments amounted to $10.6 billion compared with $9.6 billion as of Dec 31, 2022.
Long-term debt as of Mar 31, 2023, was $1.988 billion compared with $1.987 billion as of Dec 31, 2022.
Net cash provided by operating activities was $1.587 billion for the first quarter of 2023, significantly up from $463 million in the prior quarter.
Airbnb generated a free cash flow of $1.581 billion in the reported quarter.
Guidance
For second-quarter 2023, Airbnb expects revenues between $2.35 billion and $2.45 billion, implying year-over-year growth of 12-16% on a reported basis. The Zacks Consensus Estimate is pegged at $2.43 billion.
ABNB anticipates the year-over-year growth of Nights and Experiences Booked to be lower than the revenue growth. Moreover, the company is likely to experience an unfavorable year-over-year comparison in Nights and Experiences Booked.
Adjusted EBITDA is expected to be similar to that of the year-ago quarter.
Image: Bigstock
Airbnb (ABNB) Q1 Earnings & Revenues Beat, Increase Y/Y
Airbnb (ABNB - Free Report) reported earnings of 18 cents per share for first-quarter 2023, which beat the Zacks Consensus Estimate by 80%. The figure compared favorably with a loss of 3 cents per share reported in the year-ago quarter.
Revenues of $1.82 billion increased 20% year over year on a reported basis and 24% on an FX neutral basis, respectively. The top line also surpassed the Zacks Consensus Estimate of $1.79 billion.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Growing Gross Booking Value (GBV) was another tailwind.
Increasing gross nights booked, owing to solid momentum across high-density urban areas, was a positive. Rising guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Airbnb, Inc. Price, Consensus and EPS Surprise
Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote
Quarterly Details
Nights and Experiences Booked were 121.1 million, up 19% on a year-over-year basis. The metric was driven by strong performances in all regions, especially the Asia Pacific.
GBV amounted to $20.4 billion, which rose 19% from the prior-year quarter’s reported figure.
GBV per Night and Experience Booked (or Average Daily Rates) was $168, which was flat on a year-over-year basis.
In terms of trip length, the category of long-term stays of 28 days or more, which accounted for 18% of overall gross nights booked, was a positive. Further, 45% of gross nights booked came from stays of at least seven nights.
In the reported quarter, gross nights booked in high-density urban areas represented 48% of overall gross nights booked.
Cross-border travel for the first quarter accounted for 45% of total gross nights booked, up from 39% in the same quarter last year.
Operating Results
Adjusted EBITDA was $262 million, up 14% from the prior-year quarter.
Operations and support costs, product development expenses, and general and administrative expenses were $282 million, $420 million and $243 million, increased 21%, 15.7% and 15.7%, respectively, year over year. Sales and marketing expenses rose 30.4% from the year-ago quarter to $450 million.
For the first quarter, Airbnb reported an operating loss of $5 million, which was flat year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash and cash equivalents, and short-term investments amounted to $10.6 billion compared with $9.6 billion as of Dec 31, 2022.
Long-term debt as of Mar 31, 2023, was $1.988 billion compared with $1.987 billion as of Dec 31, 2022.
Net cash provided by operating activities was $1.587 billion for the first quarter of 2023, significantly up from $463 million in the prior quarter.
Airbnb generated a free cash flow of $1.581 billion in the reported quarter.
Guidance
For second-quarter 2023, Airbnb expects revenues between $2.35 billion and $2.45 billion, implying year-over-year growth of 12-16% on a reported basis. The Zacks Consensus Estimate is pegged at $2.43 billion.
ABNB anticipates the year-over-year growth of Nights and Experiences Booked to be lower than the revenue growth. Moreover, the company is likely to experience an unfavorable year-over-year comparison in Nights and Experiences Booked.
Adjusted EBITDA is expected to be similar to that of the year-ago quarter.
Zacks Rank & Stocks to Consider
Currently, Airbnb has a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Agilent Technologies (A - Free Report) , DigitalOcean (DOCN - Free Report) and AMETEK (AME - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent Technologies shares have risen 9.2% in the past year. A’s long-term earnings growth rate is projected at 12%.
DigitalOcean shares have risen 2.2% in the past year. DOCN’s long-term earnings growth rate is projected at 41.06%.
AMETEK shares have rallied 19.5% in the past year. AME’s long-term earnings growth rate is projected at 8.95%.