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Airbnb (ABNB - Free Report) reported earnings of 48 cents per share for fourth-quarter 2022, which beat the Zacks Consensus Estimate by 77.8%. The figure significantly jumped from earnings of 8 cents per share reported in the year-ago quarter.
Revenues of $1.9 billion increased 24% on a reported basis and 31% on FX neutral basis, respectively, year over year. The top line also surpassed the Zacks Consensus Estimate of $1.87 billion.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growth in Average Daily Rates and Gross Booking Value (GBV) remained a tailwind.
Growing gross nights booked owing to solid momentum across high-density urban areas, remained a positive. Increasing guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Quarterly Details
Nights and Experiences Booked were 88.2 million, increasing 20% on a year-over-year basis. The metric was driven by strong performances in all regions, especially Asia Pacific.
GBV amounted to $13.5 billion, which rose 20% from the prior-year quarter’s reported figure.
GBV per Night and Experience Booked (or Average Daily Rates) was $152.8, down 1% year over year.
In terms of trip length, the category of long-term stays of 28 days or more which accounted for 21% of overall gross nights booked, remained a positive. Further, 46% of gross nights booked came from stays of at least seven nights.
In the reported quarter, gross nights booked in high-density urban areas represented 51% of overall gross nights booked.
Cross-border travel for the fourth quarter accounted for 44% of total gross nights booked, downfrom 49% in the same quarter last year.
Adjusted EBITDA was $506 million, up 52% from prior-year quarter’s level.
Operations and support costs, product development expenses, and general and administrative expenses were $260 million, $397 million and $256 million, increased 15.5%, 7.9% and 17.9%, respectively, year over year. Sales and marketing expenses rose 16.9% from the year-ago quarter’s figure to $409 million.
For the fourth quarter, Airbnb reported operating income of $235 million, significantly up from $76 million reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash and cash equivalents, and marketable securities amounted to $9.62 billion compared with $9.63 billion as of Sep 30, 2022.
Long-term debt as of Dec 31, 2022, was $1.987 billion compared with $1.986 billion as of Sep 30, 2022.
Net cash provided by operating activities was $463 million for the fourth quarter of 2022, down from $966 million in the prior quarter.
Airbnb generated a free cash flow of $455 million in the reported quarter.
Guidance
For first-quarter 2023, Airbnb expects revenues between $1.75 billion and $1.82 billion, implying year-over-year growth in the band of 16-21% on a reported basis and 18-23% on FX neutral basis, respectively. The Zacks Consensus Estimate is pegged at $1.73 billion.
ABNB anticipates the year-over-year growth of Nights and Experiences Booked to be strong like that in fourth-quarter 2022.
Adjusted EBITDA is expected to be slightly down compared with year-ago quarter’s figure.
Image: Bigstock
Airbnb (ABNB) Q4 Earnings & Revenues Beat Mark, Increase Y/Y
Airbnb (ABNB - Free Report) reported earnings of 48 cents per share for fourth-quarter 2022, which beat the Zacks Consensus Estimate by 77.8%. The figure significantly jumped from earnings of 8 cents per share reported in the year-ago quarter.
Revenues of $1.9 billion increased 24% on a reported basis and 31% on FX neutral basis, respectively, year over year. The top line also surpassed the Zacks Consensus Estimate of $1.87 billion.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growth in Average Daily Rates and Gross Booking Value (GBV) remained a tailwind.
Growing gross nights booked owing to solid momentum across high-density urban areas, remained a positive. Increasing guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Quarterly Details
Nights and Experiences Booked were 88.2 million, increasing 20% on a year-over-year basis. The metric was driven by strong performances in all regions, especially Asia Pacific.
GBV amounted to $13.5 billion, which rose 20% from the prior-year quarter’s reported figure.
GBV per Night and Experience Booked (or Average Daily Rates) was $152.8, down 1% year over year.
In terms of trip length, the category of long-term stays of 28 days or more which accounted for 21% of overall gross nights booked, remained a positive. Further, 46% of gross nights booked came from stays of at least seven nights.
In the reported quarter, gross nights booked in high-density urban areas represented 51% of overall gross nights booked.
Cross-border travel for the fourth quarter accounted for 44% of total gross nights booked, downfrom 49% in the same quarter last year.
Airbnb, Inc. Price, Consensus and EPS Surprise
Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote
Operating Results
Adjusted EBITDA was $506 million, up 52% from prior-year quarter’s level.
Operations and support costs, product development expenses, and general and administrative expenses were $260 million, $397 million and $256 million, increased 15.5%, 7.9% and 17.9%, respectively, year over year. Sales and marketing expenses rose 16.9% from the year-ago quarter’s figure to $409 million.
For the fourth quarter, Airbnb reported operating income of $235 million, significantly up from $76 million reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash and cash equivalents, and marketable securities amounted to $9.62 billion compared with $9.63 billion as of Sep 30, 2022.
Long-term debt as of Dec 31, 2022, was $1.987 billion compared with $1.986 billion as of Sep 30, 2022.
Net cash provided by operating activities was $463 million for the fourth quarter of 2022, down from $966 million in the prior quarter.
Airbnb generated a free cash flow of $455 million in the reported quarter.
Guidance
For first-quarter 2023, Airbnb expects revenues between $1.75 billion and $1.82 billion, implying year-over-year growth in the band of 16-21% on a reported basis and 18-23% on FX neutral basis, respectively. The Zacks Consensus Estimate is pegged at $1.73 billion.
ABNB anticipates the year-over-year growth of Nights and Experiences Booked to be strong like that in fourth-quarter 2022.
Adjusted EBITDA is expected to be slightly down compared with year-ago quarter’s figure.
Zacks Rank & Other Stocks to Consider
Currently, Airbnb has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are Agilent Technologies (A - Free Report) , Arista Networks (ANET - Free Report) and Garmin (GRMN - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent has gained 8.4% in the past year. A’s long-term earnings growth rate is currently projected at 10%.
Arista Networks has gained 6.1% in the past year. The long-term earnings growth rate for ANET is currently projected at 17.5%.
Garmin has lost 24.6% in the past year. The long-term earnings growth rate for GRMN is currently projected at 5.6%.