As bookings and revenue grow, Airbnb benefits from a “travel recovery”

[ad_1]

Airbnb Inc updates

Airbnb said on Thursday that tourists from areas with higher vaccination rates are “promoting a travel recovery” as it reported strong revenue growth for the quarter.

At the same time, the short-term rental provider warned that the “global spread of Covid variants” and inconsistent local regulations may adversely affect the number of bookings later this year, making investors vigilant about the possibility of booking callbacks .

Airbnb said: “Compared with summer, we still don’t know how willing people are to travel in the fall.”

The stock fell about 3% in after-hours trading.

During the April-June period, compared with the beginning of the year, cross-border travel grew strongly. Travelers benefited from the relaxation of restrictions and showed a willingness to take risks for longer distances.

The company stated in a shareholder letter that destinations with increased vaccine supply are particularly benefiting from the increase in bookings.

Airbnb revenue overview

Actual Comparative estimate

Total bookings: $13.4 billion Compared to $11.6 billion

income: $1.34 billion Vs. $1.26 billion

Booked nights and experiences: 83.1m Compared to 79.2m

EBITDA: $217 million Compared to $52 million

Net loss: -68 million USD Comparison-260 million US dollars

Estimates provided by FactSet and S&P Capital IQ

Revenue in the second quarter was $1.34 billion, almost four times that of the same period in 2020, and also an increase of 10% over 2019. According to estimates provided by FactSet, Wall Street had previously expected it to be $1.26 billion.

In its earnings report, Airbnb records the income during the stay, but records the “booked nights and experience” at the time of booking-this is an important indicator of future income, unless there is any cancellation.

The total number of nights and experiences booked in the second quarter increased by nearly 200% compared with 2020, reaching 83.1 million, which was higher than the 79.2 million expected by analysts. Experience is an add-on product of Airbnb, offering activities such as cooking classes or travel.

This will help Airbnb achieve “the strongest quarterly revenue on record” in this quarter, “much higher than” its revenue in the third quarter of 2019 before the pandemic. The company recently ushered in the “largest” single night booking.

“Last Saturday night, more than 4 million guests from all over the world checked into Airbnb,” said Brian Chesky, the company’s co-founder and CEO. “This is more than the total population of Los Angeles.”

Looking ahead, it warns investors that it faces new uncertainties as the end of the year approaches.

The company said in a shareholder letter: “Vaccination progress, containment of new variants, and travel restrictions outside the United States will continue to be key factors.”

“Therefore, although we expect the’booked nights and experience’ in the third quarter of 2021 will be significantly better than the third quarter of 2020, we expect the’booked nights and experience’ to be lower than in the second quarter and remain It is below the level of the third quarter of 2019.”

[ad_2]

Source link