Airbnb’s Shares Drop 12% After Poor Earnings Forecast.

Airbnb Shares Fall Despite Strong Q1 Earnings

The industry leader in home sharing, Airbnb, reported Q1 sales of $1.82 billion, exceeding the $1.79 billion consensus analyst estimate from Refinitiv. Additionally, the business reported EPS of 18 cents, more than doubling the forecasted figure of nine cents. With a net profit of $117 million, Airbnb has experienced its first profitable first quarter on a GAAP basis. In the year-ago quarter, the company had a net loss of $19 million, or three cents per share.

Despite these impressive figures, CNBC reports that Airbnb shares fell 12 percent in Wednesday morning trading. Airbnb’s weaker-than-expected guidance and a cautious outlook for the second quarter of 2023 are blamed for the decline in share price.

Challenges Ahead for Airbnb

In a shareholder letter, Airbnb noted that year-over-year comparisons for the second quarter would be difficult, stating that “Nights and Experiences Booked will have unfavorable year-over-year comparisons in Q2 2023 as we overlap pent-up 2022 demand following the COVID Omicron variant.” In light of this, the platform projected Q2 revenue between $2.35 billion and $2.45 billion, which was slightly less than Refinitiv’s forecast of $2.42 billion.

Airbnb has previously come under fire for its politically biased treatment of its users, including prominent conservative voices. In February 2022, Breitbart News reporter Alana Mastrangelo wrote about conservative author and journalist Michelle Malkin and her husband being banned by Airbnb as “retaliation” for engaging in free speech at a conference last November.

Airbnb’s Strategic Goals

In the investor letter, Airbnb emphasized its focus on three strategic goals: making hosting as popular as travel, offering guests reasonably priced lodging, and growing its presence in “less mature” international markets. The company wants to increase the platform’s appeal to both hosts and visitors while also ensuring a wider reach in underserved areas.

• Airbnb reported Q1 sales of $1.82 billion, exceeding the $1.79 billion consensus analyst estimate from Refinitiv.
• The business reported EPS of 18 cents, more than doubling the forecasted figure of nine cents.
• Airbnb has experienced its first profitable first quarter on a GAAP basis.
• Airbnb shares fell 12 percent in Wednesday morning trading due to weaker-than-expected guidance and a cautious outlook for Q2 2023.
• Airbnb has previously come under fire for its politically biased treatment of its users, including prominent conservative voices.
• Airbnb emphasized its focus on three strategic goals: making hosting as popular as travel, offering guests reasonably priced lodging, and growing its presence in “less mature” international markets.

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