Airbnb Inc. on Thursday reported its highest quarterly revenue and net income ever, blowing past expectations on the strength of summer travel and continued pandemic recovery in North America, Europe and Latin America.
Airbnb shares were up about 3% in after hours, despite briefly turning negative in the extended session. Shares advanced 3.2% in the regular session to close at $178.45.
The travel-booking company, which dominates alternative accommodations, said in a letter to shareholders that it continues to see shifts in travel. That includes more trips closer to home and outside of cities, plus more long-term stays — which Airbnb said remained its fastest-growing category.
The company’s letter included its oft-repeated mantra that a travel “revolution” is underway: “Airbnb makes it possible to work from any home.”
Airbnb’s third-quarter revenue increased almost 70% year over year to $2.2 billion and outdid pre-pandemic, third quarter 2019 revenue by 36%.
The company’s record high net income of $834 million, or $1.22 a share, was 220% higher than its year-ago net income of $219 million and an increase of 213% from the same quarter in 2019.
Adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) was $1.1 billion, which was up 120% year over year and 251% from the same period two years ago.
Analysts surveyed by FactSet had forecast earnings of $478 million, or 72 cents a share, on revenue of $2.06 billion.
The company saw 79.7 million nights and experiences booked, a 29% increase year over year, but still 7% lower than the same period in 2019. Gross booking value, boosted by higher average daily rates, grew 48% year over year to $11.9 billion.
Airbnb said the third quarter is usually its best quarter because of seasonal travel. But it also issued an optimistic outlook about the fourth quarter, which it says is already off to a strong start.
“As of the end of September, our backlog had over 40% more nights booked for Thanksgiving week in the U.S. than at the same time in 2019,” the company told shareholders. “And we are seeing the strong demand for travel extend well into 2022.”
The company expects fourth-quarter revenue of between $1.39 billion and $1.48 billion but did not give a net income forecast. Analysts had forecast a loss of $40 million, or 3 cents a share, on revenue of $1.44 billion.
Airbnb stock is up 21.6% so far this year, compared with the S&P 500 index SPX,
