Airbnb slips after guiding below expectations for fourth quarter; Reactions mixed

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Airbnb slips after guiding below expectations for fourth quarter; Reactions mixed
Credit: © Reuters.
(Updated - November 2, 2023 5:46 AM EDT) -- Airbnb Inc (NASDAQ: ABNB ) shares were falling after the home-sharing company reported slightly better than expected revenue but guided below consensus for the fourth quarter.

The company reported earnings per share of $6.63 on revenue of $3.4 billion, an 18% gain. Analysts expected adjusted profit of $2.11 on revenue of $3.37 billion.

The company said the number of Nights and Experiences Booked exceeded 113 million, up 14% from the same time last year and consistent with earlier remarks by management regarding revenue growth outpacing bookings growth.

Cross-border nights booked grew by 17% from the same time last year. “As international travel continues to recover, we’re building greater momentum for Airbnb in under-penetrated markets,” the company said in a shareholder letter.

Shares fell 1.4% in pre-open Thursday on the report. They are up more than 39% this year.

Airbnb sees fourth-quarter revenue of $2.13 billion to $2.17 billion, just below expectations for $2.18 billion. It said it was closely monitoring economic trends and geopolitical events that may affect travel demand and expects growth in nights booked to moderate in the fourth quarter from the third.

Analysts at Oppenheimer believe the valuation is now more attractive, but they remain Perform-rated due to "slowing nights, along with ADR/macro uncertainties."

Analysts at Goldman Sachs are more concerned with their Sell rating on ABNB stock reaffirmed.

Their rating is "more driven by the risk/reward of the shares from current levels relative to the rest of our coverage universe."

Additional reporting by Senad Karaahmetovic

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