shares traded sharply lower in late trading on Tuesday after the short-term rental real estate service went public second quarter results roughly in line with the company’s guidance, but clearly not as good as investors had hoped.
For the quarter, Airbnb (ticker: ABNB ) reported revenue of $2.1 billion, up 58% from a year ago, according to the company’s estimate of $2.03 billion to $2.13 billion, and a hair below consensus at $2.11 billion. On a constant currency basis, revenues increased by 64%. The company noted that revenue was up 73% compared to 2019, before the start of the Covid-19 pandemic.
Gross bookings were $17 billion, up 27%, or 34% adjusted for currency, but slightly less than the $17.2 billion reported in the first quarter. Bookings in the first quarter were 67% higher compared to the year-ago quarter, or 71% higher on a currency-adjusted basis.
“Nights and experiences” booked were 103.7 million in the quarter, up 25% from a year ago and the highest quarterly level ever. That was up slightly from 102.1 million in the first quarter, but slowed from the first quarter’s growth rate of 59% and slightly below Street forecasts, which had called for growth of 27%.
Airbnb earned $379 million in the quarter, reversing a $19 million loss in the first quarter. Adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was $711 million, or $764 million adjusted for currency, up from $229 million in the first quarter and well above estimates. Earnings were 59 cents a share, above the Street consensus of 44 cents.
Airbnb also said its board of directors had authorized the repurchase of up to $2 billion of its common stock.
The company laid out a generally optimistic view of the near-term outlook. Airbnb said it “saw year-over-year growth in booked nights accelerate again from June to July as we enter the peak travel season.”
Airbnb said it was “in the midst of our strongest peak travel season on record,” noting that July 4 was the company’s single highest-grossing day to date.
Airbnb said it expects a “moderate acceleration” in gross booking value growth in the third quarter. The company sees third-quarter revenue between $2.78 billion and $2.88 billion, slightly above the Street consensus of $2.77 billion, forecasting its strongest quarter ever for adjusted Ebitda. Airbnb added that it expects adjusted Ebitda margin to be “at or slightly below last year’s all-time high margin of 49%, primarily due to the spending schedule.”
Shares of Airbnb fell 9.6% to $105.16 in late trading.
Write to Eric J. Savitz at address [email protected]