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Airbnb sets a new quarterly record – disappoints on guidance

3 November 2022 By Klavs Valters

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Airbnb Inc. (NAS:ABNB) reported its latest financial results after the closing bell in the US on Tuesday.

World’s second largest online travel company beat both revenue and earnings per share (EPS) estimates for the quarter.

Revenue reported at $2.884 billion (up by 29% year-over-year) vs. $2.852 billion expected.

EPS at $1.79 per share (up by 46% year-over-year) vs. $1.485 per share estimate.

”Q3 was our biggest and most profitable quarter ever despite geopolitical and macroeconomic headwinds,” Airbnb wrote in a letter to shareholders.

”In Q3 2022, we had nearly 100 million Nights and Experiences Booked, up 25 percent year-over-year, and $15.6 billion in Gross Booking Value, up 31 percent year-over-year (or 40% ex-FX). Revenue grew 29 percent year-over-year (or 36% ex-FX) to $2.9 billion—our highest quarter ever.”

”We also had our most profitable quarter with net income of $1.2 billion, up 46 percent year-over-year, representing a 42 percent net income margin. Free cash flow of $960 million increased more than 80 percent from a year ago. And, over the last twelve months, we generated $3.3 billion in FCF, representing a FCF margin of more than 40 percent.

”Our Q3 results demonstrate that Airbnb continues to drive growth and profitability at scale. And regardless of continued macro uncertainties, we believe we’re well positioned for the road ahead.”

The company expects revenue of between $1.80 billion to $1.88 billion in Q4, which represent growth of between 17% and 23% year-over-year.

Shares of Airbnb were trading lower on Wednesday, despite beating Q3 estimates due to future outlook.

The stock was down by around 10% at $97.80 a share.

Stock performance

  • 1 month: -12.18%
  • 3 months: -14.67%
  • Year-to-date: -41.05%
  • 1 year: -43.23%

Airbnb price targets

  • Morgan Stanley: $110
  • Mizuho: $125
  • Baird: $120
  • UBS: $112
  • Credit Suisse: $154
  • Goldman Sachs: $98
  • Piper Sandler: $110
  • Keybanc: $142
  • Jefferies: $138

Airbnb Inc. is the 208th largest company in the world with a market cap of $63.27 billion.

You can trade Airbnb Inc. (NAS:ABNB) and many other stocks from the NYSE, NASDAQ, HKEX, ASX, LSE and DE with GO Markets as a Share CFD.

Sources: Airbnb Inc., TradingView, MetaTrader 5, Benzinga, CompaniesMarketCap

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