Airbnb (ABNB - Free Report) reported third-quarter 2023 earnings of $2.39 per share, which beat the Zacks Consensus Estimate by 14.9% and jumped 33.5% year over year.
Revenues of $3.4 billion increased 18% on a reported basis and 14% on a forex-neutral basis, respectively, year over year. The top line also surpassed the consensus mark by 0.98%.
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 and first-time bookers, remained positive. Increasing guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Strong momentum in active listings acted as a tailwind.
Quarterly Details
Nights and Experiences Booked were 113.2 million, up 14% on a year-over-year basis. The metric was driven by strong performances in all regions.
GBV amounted to $18.3 billion, which rose 17% from the prior-year quarter’s reported figure. GBV per Night and Experience Booked (or Average Daily Rates) was $161, which increased 3% 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 positive. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights.
Guests traveling more than 3,000 miles increased 18% 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 $1.8 billion, up 26% year over year.
Operations and support costs increased 9.9% year over year to $299 million. Product development expenses increased 5.6% year over year to $244 million.
Sales and marketing expenses rose 3.4% from the year-ago quarter’s figure to $367 million. General and administrative expenses were $243 million, up 29.9% year over year.
For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents and short-term investments amounted to $10.96 billion compared with $10.4 billion as of Jun 30, 2023.
Long-term debt, as of Sep 30, 2023, was $1.990 billion compared with $1.989 billion as of Jun 30, 2023.
Net cash provided by operating activities was $1.3 billion for the third quarter of 2023, significantly down from $909 million in the previous quarter.
Airbnb generated a free cash flow of $1.3 billion compared with $900 million in the previous quarter.
Guidance
For fourth-quarter 2023, the company expects revenues between $2.13 billion and $2.17 billion, implying year-over-year growth in the band of 12-14% on a reported basis. The Zacks Consensus Estimate is pegged at $2.17 billion.
Airbnb expects greater volatility in travel demand, subjected to macroeconomic trends and geopolitical conflicts in the fourth quarter.
Adjusted EBITDA margin is expected to increase on year-over-year growth.
Zacks Rank and Stocks to Consider
Currently, Airbnb has a Zacks Rank #3 (Hold).
Here are some better-ranked stocks worth considering in the broader sector.
Ballard Power System (BLDP - Free Report) , NetEase (NTES - Free Report) and Upstart (UPST - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While BLDP and NTES carry a Zacks Rank #1 (Strong Buy) each, UPST carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ballard Power System shares have declined 31.1% year to date. BLDP is set to report its third-quarter 2023 results on Nov 7.
NetEase shares have gained 49.2% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Upstart shares have returned 86% year to date. UPST is set to report its third-quarter 2023 results on Nov 7.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Airbnb (ABNB - Free Report) reported third-quarter 2023 earnings of $2.39 per share, which beat the Zacks Consensus Estimate by 14.9% and jumped 33.5% year over year.
Revenues of $3.4 billion increased 18% on a reported basis and 14% on a forex-neutral basis, respectively, year over year. The top line also surpassed the consensus mark by 0.98%.
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 and first-time bookers, remained positive. Increasing guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Strong momentum in active listings acted as a tailwind.
Quarterly Details
Nights and Experiences Booked were 113.2 million, up 14% on a year-over-year basis. The metric was driven by strong performances in all regions.
GBV amounted to $18.3 billion, which rose 17% from the prior-year quarter’s reported figure. GBV per Night and Experience Booked (or Average Daily Rates) was $161, which increased 3% 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 positive. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights.
Guests traveling more than 3,000 miles increased 18% 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 $1.8 billion, up 26% year over year.
Operations and support costs increased 9.9% year over year to $299 million. Product development expenses increased 5.6% year over year to $244 million.
Sales and marketing expenses rose 3.4% from the year-ago quarter’s figure to $367 million. General and administrative expenses were $243 million, up 29.9% year over year.
For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents and short-term investments amounted to $10.96 billion compared with $10.4 billion as of Jun 30, 2023.
Long-term debt, as of Sep 30, 2023, was $1.990 billion compared with $1.989 billion as of Jun 30, 2023.
Net cash provided by operating activities was $1.3 billion for the third quarter of 2023, significantly down from $909 million in the previous quarter.
Airbnb generated a free cash flow of $1.3 billion compared with $900 million in the previous quarter.
Guidance
For fourth-quarter 2023, the company expects revenues between $2.13 billion and $2.17 billion, implying year-over-year growth in the band of 12-14% on a reported basis. The Zacks Consensus Estimate is pegged at $2.17 billion.
Airbnb expects greater volatility in travel demand, subjected to macroeconomic trends and geopolitical conflicts in the fourth quarter.
Adjusted EBITDA margin is expected to increase on year-over-year growth.
Zacks Rank and Stocks to Consider
Currently, Airbnb has a Zacks Rank #3 (Hold).
Here are some better-ranked stocks worth considering in the broader sector.
Ballard Power System (BLDP - Free Report) , NetEase (NTES - Free Report) and Upstart (UPST - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While BLDP and NTES carry a Zacks Rank #1 (Strong Buy) each, UPST carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ballard Power System shares have declined 31.1% year to date. BLDP is set to report its third-quarter 2023 results on Nov 7.
NetEase shares have gained 49.2% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Upstart shares have returned 86% year to date. UPST is set to report its third-quarter 2023 results on Nov 7.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Get the latest research report on NTES - FREE
Get the latest research report on BLDP - FREE
Get the latest research report on ABNB - FREE
Get the latest research report on UPST - FREE