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Airbnb (ABNB) Q2 Earnings Miss Estimates, Revenues Up Y/Y
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Airbnb (ABNB - Free Report) reported adjusted earnings of 86 cents per share for second-quarter 2024, which declined 12.2% year over year. The bottom line missed the Zacks Consensus Estimate by 6.5%.
Revenues of $2.75 billion increased 11% on a reported basis, as well as on an FX-neutral basis, year over year. The top line lagged the Zacks Consensus Estimate by 0.1%.
The year-over-year increase was driven by driven by the growth of nights stayed on the platform. Continuous improvement in the Nights and Experiences Booked metric acted as a tailwind.
A modest increase in Average Daily Rate was a plus.
These factors aided growth in the company’s Gross Booking Value (GBV) in the second quarter.
Also, a solid momentum in Airbnb app downloads contributed well.
Nights and Experiences Booked were 125.1 million, up 9% 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 $21.28 billion, which rose 11% from the prior-year quarter’s reported figure.
GBV per Nights and Experiences Booked (or Average Daily Rates) were $169.53, which grew 2% on a year-over-year basis.
In the reported quarter, the company witnessed a 25% year-over-year increase in app downloads globally, driven by strong growth in the United States.
In addition, nights booked on the app during the quarter increased 19% year-over-year and comprised 55% of total nights booked.
Operating Results
Adjusted EBITDA was $894 million, up 9% from the prior-year quarter.
Operations and support costs, product development expenses, and sales and marketing expenses were $338 million, $519 million and $573 billion, increasing 6.6%, 15.1% and 17.9%, respectively, year over year. General and administrative expenses were $315 million, up 14.5% year over year.
For the second quarter, Airbnb reported an operating margin of 18.1%, which contracted 300 basis points (bps) from the prior-year quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and cash equivalents and short-term investments amounted to $11.3 billion compared with $11.1 billion as of Mar 31, 2024.
Long-term debt, as of Jun 30, 2024, was $1.993 billion compared with $1.992 billion as of Mar 31, 2024.
Net cash provided by operating activities was $1.1 billion for the second quarter of 2024, down from $1.9 billion in the previous quarter.
Airbnb generated a free cash flow of $1.0 billion in the second quarter.
Guidance
For the third quarter of 2024, the company expects revenues between $3.67 billion and $3.73 billion, implying year-over-year growth of 8-10% on a reported basis. The Zacks Consensus Estimate is pegged at $3.86 billion.
Airbnb anticipates take rate in in the third quarter will be higher on a year-over-year basis, primarily due to the timing of bookings and cross-currency transaction fees.
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) Q2 Earnings Miss Estimates, Revenues Up Y/Y
Airbnb (ABNB - Free Report) reported adjusted earnings of 86 cents per share for second-quarter 2024, which declined 12.2% year over year. The bottom line missed the Zacks Consensus Estimate by 6.5%.
Revenues of $2.75 billion increased 11% on a reported basis, as well as on an FX-neutral basis, year over year. The top line lagged the Zacks Consensus Estimate by 0.1%.
The year-over-year increase was driven by driven by the growth of nights stayed on the platform. Continuous improvement in the Nights and Experiences Booked metric acted as a tailwind.
A modest increase in Average Daily Rate was a plus.
These factors aided growth in the company’s Gross Booking Value (GBV) in the second 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 125.1 million, up 9% 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 $21.28 billion, which rose 11% from the prior-year quarter’s reported figure.
GBV per Nights and Experiences Booked (or Average Daily Rates) were $169.53, which grew 2% on a year-over-year basis.
In the reported quarter, the company witnessed a 25% year-over-year increase in app downloads globally, driven by strong growth in the United States.
In addition, nights booked on the app during the quarter increased 19% year-over-year and comprised 55% of total nights booked.
Operating Results
Adjusted EBITDA was $894 million, up 9% from the prior-year quarter.
Operations and support costs, product development expenses, and sales and marketing expenses were $338 million, $519 million and $573 billion, increasing 6.6%, 15.1% and 17.9%, respectively, year over year. General and administrative expenses were $315 million, up 14.5% year over year.
For the second quarter, Airbnb reported an operating margin of 18.1%, which contracted 300 basis points (bps) from the prior-year quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and cash equivalents and short-term investments amounted to $11.3 billion compared with $11.1 billion as of Mar 31, 2024.
Long-term debt, as of Jun 30, 2024, was $1.993 billion compared with $1.992 billion as of Mar 31, 2024.
Net cash provided by operating activities was $1.1 billion for the second quarter of 2024, down from $1.9 billion in the previous quarter.
Airbnb generated a free cash flow of $1.0 billion in the second quarter.
Guidance
For the third quarter of 2024, the company expects revenues between $3.67 billion and $3.73 billion, implying year-over-year growth of 8-10% on a reported basis. The Zacks Consensus Estimate is pegged at $3.86 billion.
Airbnb anticipates take rate in in the third quarter will be higher on a year-over-year basis, primarily due to the timing of bookings and cross-currency transaction fees.
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 Stocks to Consider
Currently, Airbnb has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Badger Meter (BMI - Free Report) , Arista Networks (ANET - Free Report) , and Apple (AAPL - Free Report) . While Badger Meter and Arista Networks sport a Zacks Rank #1 (Strong Buy) each, Apple carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Badger Meter shares have gained 32.7% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.92%.
Arista Networks shares have gained 41.5% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 17.20%.
Apple shares have gained 16.4% in the year-to-date period. The long-term earnings growth rate for AAPL is currently projected at 12.69%.