Airbnb (ABNB - Free Report) reported second-quarter 2023 earnings of 98 cents per share, which beat the Zacks Consensus Estimate by 27.27% and jumped 75% year over year.
Revenues of $2.48 billion increased 18.1% on a reported basis and 19% on a forex-neutral basis, respectively, year over year. The top line also surpassed the consensus mark by 2.81%.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growing 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.
ABNB shares were relatively unchanged, closing at $140.17 on Aug 4 following the results. Shares have returned 63.9% year to date, outperforming the Zacks Computer & Technology sector’s return of 37.3%.
Quarterly Details
Nights and Experiences Booked were 115.1 million, up 11% on a year-over-year basis. The metric was driven by strong performances in all regions, particularly Asia Pacific.
GBV amounted to $19.1 billion, which rose 13% from the prior-year quarter’s reported figure. GBV per Night and Experience Booked (or Average Daily Rates) was $166.01, which increased 1% on a year-over-year basis.
In the reported quarter, active listings increased 19% year over year. Airbnb’s total active listings are now more than 7 million. The company witnessed double-digit supply growth across all regions, with the most growth in Asia Pacific and Latin America.
In terms of trip length, the category of long-term stays of 28 days or more, which accounted for 18% of overall gross nights booked, remained a positive. In the reported quarter, gross nights booked in high-density urban areas increased 13% year over year and accounted for 48% of gross nights.
Cross-border travel for the second quarter increased 16% year over year, particularly, cross-border travel to Asia Pacific grew more than 80%. Cross-border travel to North America increased 20%. Guests traveling more than 3,000 miles increased 20% year over year. Cross-border represented 45% of total gross nights booked, up from 43% in the year-ago quarter.
Operating Results
Adjusted EBITDA was $819 million, up 15.2% year over year.
Operations and support costs surged 23.7% year over year to $298 million. Product development expenses increased 13% year over year to $260 million.
Sales and marketing expenses rose 25% from the year-ago quarter’s figure to $465 million. General and administrative expenses were $217 million, up 15.4% year over year.
For the second quarter, Airbnb reported an operating income of $523 million, up 41.7% year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2023, cash and cash equivalents and short-term investments amounted to $9.62 billion compared with $10.6 billion as of Mar 31, 2023.
Long-term debt, as of Jun 30, 2023, was $1.987 billion compared with $1.988 billion as of Mar 31, 2023.
Net cash provided by operating activities was $909 million for the second quarter of 2023, significantly down from $1.587 billion in the previous quarter.
Airbnb generated a free cash flow of $900 million compared with $1.581 billion in the previous quarter.
Guidance
For third-quarter 2023, Airbnb expects revenues between $3.3 billion and $3.4 billion, implying year-over-year growth in the band of 14-18% on a reported basis. The Zacks Consensus Estimate is pegged at $2.43 billion.
Airbnb believes revenue growth will outpace Nights and Experiences Booked growth in the third quarter.
Adjusted EBITDA margin is expected to increase on year-over-year growth.
Zacks Rank & Other Stocks to Consider
Currently, Airbnb carries a Zacks Rank #2 (Buy).
BILL Holdings (BILL - Free Report) , CACI International (CACI - Free Report) and Cisco Systems (CSCO - Free Report) are some other top-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BILL Holdings shares have gained 4.5% year to date. BILL is set to report its fourth-quarter fiscal 2023 results on Aug 17.
CACI International shares have gained 18.1% year to date. CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9.
Cisco Systems shares have returned 11.1% year to date. CSCO is set to report its fourth-quarter fiscal 2023 results on Aug 16.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Airbnb (ABNB - Free Report) reported second-quarter 2023 earnings of 98 cents per share, which beat the Zacks Consensus Estimate by 27.27% and jumped 75% year over year.
Revenues of $2.48 billion increased 18.1% on a reported basis and 19% on a forex-neutral basis, respectively, year over year. The top line also surpassed the consensus mark by 2.81%.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growing 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.
ABNB shares were relatively unchanged, closing at $140.17 on Aug 4 following the results. Shares have returned 63.9% year to date, outperforming the Zacks Computer & Technology sector’s return of 37.3%.
Quarterly Details
Nights and Experiences Booked were 115.1 million, up 11% on a year-over-year basis. The metric was driven by strong performances in all regions, particularly Asia Pacific.
GBV amounted to $19.1 billion, which rose 13% from the prior-year quarter’s reported figure. GBV per Night and Experience Booked (or Average Daily Rates) was $166.01, which increased 1% on a year-over-year basis.
In the reported quarter, active listings increased 19% year over year. Airbnb’s total active listings are now more than 7 million. The company witnessed double-digit supply growth across all regions, with the most growth in Asia Pacific and Latin America.
In terms of trip length, the category of long-term stays of 28 days or more, which accounted for 18% of overall gross nights booked, remained a positive. In the reported quarter, gross nights booked in high-density urban areas increased 13% year over year and accounted for 48% of gross nights.
Cross-border travel for the second quarter increased 16% year over year, particularly, cross-border travel to Asia Pacific grew more than 80%. Cross-border travel to North America increased 20%. Guests traveling more than 3,000 miles increased 20% year over year. Cross-border represented 45% of total gross nights booked, up from 43% in the year-ago quarter.
Operating Results
Adjusted EBITDA was $819 million, up 15.2% year over year.
Operations and support costs surged 23.7% year over year to $298 million. Product development expenses increased 13% year over year to $260 million.
Sales and marketing expenses rose 25% from the year-ago quarter’s figure to $465 million. General and administrative expenses were $217 million, up 15.4% year over year.
For the second quarter, Airbnb reported an operating income of $523 million, up 41.7% year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2023, cash and cash equivalents and short-term investments amounted to $9.62 billion compared with $10.6 billion as of Mar 31, 2023.
Long-term debt, as of Jun 30, 2023, was $1.987 billion compared with $1.988 billion as of Mar 31, 2023.
Net cash provided by operating activities was $909 million for the second quarter of 2023, significantly down from $1.587 billion in the previous quarter.
Airbnb generated a free cash flow of $900 million compared with $1.581 billion in the previous quarter.
Guidance
For third-quarter 2023, Airbnb expects revenues between $3.3 billion and $3.4 billion, implying year-over-year growth in the band of 14-18% on a reported basis. The Zacks Consensus Estimate is pegged at $2.43 billion.
Airbnb believes revenue growth will outpace Nights and Experiences Booked growth in the third quarter.
Adjusted EBITDA margin is expected to increase on year-over-year growth.
Zacks Rank & Other Stocks to Consider
Currently, Airbnb carries a Zacks Rank #2 (Buy).
BILL Holdings (BILL - Free Report) , CACI International (CACI - Free Report) and Cisco Systems (CSCO - Free Report) are some other top-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BILL Holdings shares have gained 4.5% year to date. BILL is set to report its fourth-quarter fiscal 2023 results on Aug 17.
CACI International shares have gained 18.1% year to date. CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9.
Cisco Systems shares have returned 11.1% year to date. CSCO is set to report its fourth-quarter fiscal 2023 results on Aug 16.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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