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Airbnb, Inc. (ABNB) Down 16.6% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Airbnb, Inc. (ABNB - Free Report) . Shares have lost about 16.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Airbnb, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Airbnb Q4 Earnings Beat, Revenues Rise Y/Y
Airbnb reported fourth-quarter 2021 earnings per share of 8 cents, beating the Zacks Consensus Estimate by 60%. The company incurred a loss of $11.24 per share in the prior-year quarter. Further, the bottom line declined 93.4% sequentially.
Revenues of $1.53 billion surpassed the consensus mark by 4.7%. Further, it increased 78.3% year over year. Yet, revenues declined 31.5% sequentially.
The year-over-year increase was driven by improvement in Nights and Experiences Booked. Also, growth in Average Daily Rates remained a tailwind.
In the fourth quarter, the company witnessed growth in active listings in Latin America, followed by North America and EMEA. Also, growth for gross nights booked remained strongest in non-urban areas. Additionally, recovery in both longer-distance and cross-border travel owing to reduction in travel restrictions aided the quarterly performance.
Yet, the company’s Nights and Experiences Booked generated lower value in EMEA due to the emergence of the OMICRON variant.
Quarter Details
Nights and Experiences Booked were 73.4 million, increasing 59% year over year.
Gross Booking Value amounted to $11.3 billion, which rose 91% from the prior-year reported figure.
Gross Booking Value per Night and Experience Booked (or Average Daily Rates) was $153.61, up 20% year over year. This is due to continued mix shift for bookings in North America, entire homes and non-urban destinations.
Operating Results
Adjusted EBITDA for the fourth quarter was $333 million compared with $(21) million reported in the same quarter last year.
Operations and support costs decreased 32% year over year to $225 million. Product development expenses were $368 million, down 82% year over year. Sales and marketing expenses declined 44% from the year-ago quarter to $351 million. General and administrative expenses amounted to $217 million, down 70% year over year.
For the fourth quarter, the company reported a net income of $54.5 million compared with $833.9 million in the third quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and cash equivalents, marketable securities, and restricted cash amounted to $8.34 billion, up from $7.94 billion reported on Sep 30, 2021.
Long-term debt as of Dec 31, 2021 was $1.983 billion. ABNB’s long-term debt was $1.981 billion as of Sep 30, 2021.
Unearned fees were $904 at fourth quarter-end compared with $892 million at third quarter-end.
Net cash provided by operating activities was $381 million for the fourth quarter versus $523 million in the third quarter.
Additionally, free cash flow was $376 million for the fourth quarter.
Guidance
For first-quarter 2022, the company expects revenues between $1.41 billion and $1.48 billion.
Management expects Average Daily Rates to increase 4% on a year-over-year basis.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 42.9% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Airbnb, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Airbnb, Inc. (ABNB) Down 16.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Airbnb, Inc. (ABNB - Free Report) . Shares have lost about 16.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Airbnb, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Airbnb Q4 Earnings Beat, Revenues Rise Y/Y
Airbnb reported fourth-quarter 2021 earnings per share of 8 cents, beating the Zacks Consensus Estimate by 60%. The company incurred a loss of $11.24 per share in the prior-year quarter. Further, the bottom line declined 93.4% sequentially.
Revenues of $1.53 billion surpassed the consensus mark by 4.7%. Further, it increased 78.3% year over year. Yet, revenues declined 31.5% sequentially.
The year-over-year increase was driven by improvement in Nights and Experiences Booked. Also, growth in Average Daily Rates remained a tailwind.
In the fourth quarter, the company witnessed growth in active listings in Latin America, followed by North America and EMEA. Also, growth for gross nights booked remained strongest in non-urban areas. Additionally, recovery in both longer-distance and cross-border travel owing to reduction in travel restrictions aided the quarterly performance.
Yet, the company’s Nights and Experiences Booked generated lower value in EMEA due to the emergence of the OMICRON variant.
Quarter Details
Nights and Experiences Booked were 73.4 million, increasing 59% year over year.
Gross Booking Value amounted to $11.3 billion, which rose 91% from the prior-year reported figure.
Gross Booking Value per Night and Experience Booked (or Average Daily Rates) was $153.61, up 20% year over year. This is due to continued mix shift for bookings in North America, entire homes and non-urban destinations.
Operating Results
Adjusted EBITDA for the fourth quarter was $333 million compared with $(21) million reported in the same quarter last year.
Operations and support costs decreased 32% year over year to $225 million. Product development expenses were $368 million, down 82% year over year. Sales and marketing expenses declined 44% from the year-ago quarter to $351 million. General and administrative expenses amounted to $217 million, down 70% year over year.
For the fourth quarter, the company reported a net income of $54.5 million compared with $833.9 million in the third quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and cash equivalents, marketable securities, and restricted cash amounted to $8.34 billion, up from $7.94 billion reported on Sep 30, 2021.
Long-term debt as of Dec 31, 2021 was $1.983 billion. ABNB’s long-term debt was $1.981 billion as of Sep 30, 2021.
Unearned fees were $904 at fourth quarter-end compared with $892 million at third quarter-end.
Net cash provided by operating activities was $381 million for the fourth quarter versus $523 million in the third quarter.
Additionally, free cash flow was $376 million for the fourth quarter.
Guidance
For first-quarter 2022, the company expects revenues between $1.41 billion and $1.48 billion.
Management expects Average Daily Rates to increase 4% on a year-over-year basis.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 42.9% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Airbnb, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.