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Airbnb (ABNB - Free Report) reported adjusted earnings of 41 cents per share for first-quarter 2024, which jumped from 18 cents per share reported in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 78.3%.
Revenues of $2.14 billion increased 18% on a reported basis, as well as on an FX-neutral basis, year over year. The top line also surpassed the Zacks Consensus Estimate by 3.7%.
The year-over-year increase was driven by continued strength in travel demand and the timing of the Easter holiday. Continuous improvement in Nights and Experiences Booked acted as a tailwind.
Growing gross nights booked, owing to the solid momentum across non-urban areas and increased demand for urban and cross-border travel, remained a positive. A modest increase in Average Daily Rate was a plus.
These factors aided growth in the company’s Gross Booking Value (GBV) in the first quarter.
Also, a solid momentum in Airbnb app downloads contributed well.
Nights and Experiences Booked were 132.6 million, up 9.5% on a year-over-year basis. The metric was driven by strong performances in all regions, especially the Asia Pacific and Latin America.
GBV amounted to $22.9 billion, which rose 12% from the prior-year quarter’s reported figure.
GBV per Nights and Experiences Booked (or Average Daily Rates) were $172.88, which grew 3% on a year-over-year basis.
In terms of trip length, the category of long-term stays of 28 days or more accounted for 17% of overall gross nights booked.
In the reported quarter, gross nights booked in non-urban areas grew 10% on a year-over-year basis.
Cross-border nights booked was up 10% year over year and accounted for 46% of total gross nights booked.
Operating Results
Adjusted EBITDA was $424 million, up 62% from the prior-year quarter.
Operations and support costs, product development expenses, and sales and marketing expenses were $285 million, $475 million and $514 billion, increasing 1.1%, 13.1% and 14.2%, respectively, year over year. General and administrative expenses were $287 million, up 18.1% year over year.
For the first quarter, Airbnb reported an operating income of $101 million against the operating loss of $5 million reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash and cash equivalents and short-term investments amounted to $11.1 billion compared with $10.1 billion as of Dec 31, 2023.
Long-term debt, as of Mar 31, 2024, was $1.992 billion compared with $1.991 billion as of Dec 31, 2023.
Net cash provided by operating activities was $1.9 billion for the first quarter of 2024, significantly up from $63 million in the previous quarter.
Airbnb generated a free cash flow of $1.9 billion in the first quarter.
Guidance
For the second quarter of 2024, the company expects revenues between $2.68 billion and $2.74 billion, implying year-over-year growth of 8-10% on a reported basis. The Zacks Consensus Estimate is pegged at $2.76 billion.
Airbnb expects revenues to benefit from robust travel demand. However, the company expects revenue growth to face a significant sequential headwind due to the timing of the Easter holiday and the impact of forex rate changes.
The adjusted EBITDA margin is expected to decrease year over year.
For 2024, the company expects an adjusted EBITDA margin of at least 35%.
Image: Bigstock
Airbnb (ABNB) Q1 Earnings & Revenues Beat, Increase Y/Y
Airbnb (ABNB - Free Report) reported adjusted earnings of 41 cents per share for first-quarter 2024, which jumped from 18 cents per share reported in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 78.3%.
Revenues of $2.14 billion increased 18% on a reported basis, as well as on an FX-neutral basis, year over year. The top line also surpassed the Zacks Consensus Estimate by 3.7%.
The year-over-year increase was driven by continued strength in travel demand and the timing of the Easter holiday. Continuous improvement in Nights and Experiences Booked acted as a tailwind.
Growing gross nights booked, owing to the solid momentum across non-urban areas and increased demand for urban and cross-border travel, remained a positive. A modest increase in Average Daily Rate was a plus.
These factors aided growth in the company’s Gross Booking Value (GBV) in the first quarter.
Also, a solid momentum in Airbnb app downloads contributed well.
Airbnb, Inc. Price, Consensus and EPS Surprise
Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote
Quarterly Details
Nights and Experiences Booked were 132.6 million, up 9.5% on a year-over-year basis. The metric was driven by strong performances in all regions, especially the Asia Pacific and Latin America.
GBV amounted to $22.9 billion, which rose 12% from the prior-year quarter’s reported figure.
GBV per Nights and Experiences Booked (or Average Daily Rates) were $172.88, which grew 3% on a year-over-year basis.
In terms of trip length, the category of long-term stays of 28 days or more accounted for 17% of overall gross nights booked.
In the reported quarter, gross nights booked in non-urban areas grew 10% on a year-over-year basis.
Cross-border nights booked was up 10% year over year and accounted for 46% of total gross nights booked.
Operating Results
Adjusted EBITDA was $424 million, up 62% from the prior-year quarter.
Operations and support costs, product development expenses, and sales and marketing expenses were $285 million, $475 million and $514 billion, increasing 1.1%, 13.1% and 14.2%, respectively, year over year. General and administrative expenses were $287 million, up 18.1% year over year.
For the first quarter, Airbnb reported an operating income of $101 million against the operating loss of $5 million reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash and cash equivalents and short-term investments amounted to $11.1 billion compared with $10.1 billion as of Dec 31, 2023.
Long-term debt, as of Mar 31, 2024, was $1.992 billion compared with $1.991 billion as of Dec 31, 2023.
Net cash provided by operating activities was $1.9 billion for the first quarter of 2024, significantly up from $63 million in the previous quarter.
Airbnb generated a free cash flow of $1.9 billion in the first quarter.
Guidance
For the second quarter of 2024, the company expects revenues between $2.68 billion and $2.74 billion, implying year-over-year growth of 8-10% on a reported basis. The Zacks Consensus Estimate is pegged at $2.76 billion.
Airbnb expects revenues to benefit from robust travel demand. However, the company expects revenue growth to face a significant sequential headwind due to the timing of the Easter holiday and the impact of forex rate changes.
The adjusted EBITDA margin is expected to decrease year over year.
For 2024, the company expects an adjusted EBITDA margin of at least 35%.
Zacks Rank and Other Stocks to Consider
Currently, Airbnb has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Akoustis Technologies (AKTS - Free Report) , NVIDIA (NVDA - Free Report) and Intrusion (INTZ - Free Report) , each carrying a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akoustis Technologies’ shares have declined 31.6% year to date. AKTS is scheduled to release third-quarter fiscal 2024 results on May 13.
NVIDIA has surged 82.6% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.
Intrusion’s shares have declined 69.6% year to date. INTZ is set to report first-quarter 2024 results on May 14.