Airbnb CEO and co-founder Brian Chesky speaks at The Fast Company Innovation Festival in New York on September 21, 2022.
Eugene Gologursky | Getty Images Entertainment | Getty Images
Airbnb Shares fell 14% in after-hours trading after the corporate reported second-quarter profit that fell in need of analysts’ expectations and warned that it was seeing signs of slowing demand from U.S. customers.
Here’s how the corporate performed in comparison with LSEG estimates for the quarter ended June 30:
- Earnings per share: 86 cents in comparison with 92 cents expected
- Revenue: $2.75 billion in comparison with expected $2.74 billion
Revenue rose 11% 12 months over 12 months. Airbnb reported net income of $555 million, or 86 cents per share, down 15% from $650 million, or 98 cents per share, within the year-ago quarter.
The vacation rental company forecast third-quarter revenue of $3.67 billion to $3.73 billion, but warned that it expects more modest year-over-year growth in its key nights and experiences category in comparison with the present quarter. It also warned that there have been “shorter booking lead times globally and some signs of slowing demand from U.S. guests.”
Airbnb said users booked 125.1 million nights and experiences, its highest total within the second quarter. “We saw continued growth across all regions compared to the second quarter of 2023, with Asia Pacific and Latin America again leading the way,” it said in its letter to shareholders.
The company also said it has removed over 200,000 low-quality listings since launching its “quality system” over a 12 months ago.
Investors are watching closely for signs that the buyer is under pressure, because the Federal Reserve has delayed rate cuts until next month on the earliest. Earnings from other firms have provided some troubling signs. McDonald’sFor example, warned in its latest earnings report that customers were feeling the results of the economic downturn; the report showed a 1% decline in like-for-like sales.
