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Airbnb's (ABNB) Loss Narrows in Q1, Revenues Increase Y/Y
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Airbnb (ABNB - Free Report) reported a loss of 3 cents per share for first-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 28 cents per share. ABNB incurred a loss of $1.95 per share in the prior-year quarter. However, earnings of 8 cents were delivered in the previous quarter.
Revenues of $1.51 billion surpassed the consensus mark of $1.45 billion. Further, the top line increased 70.1% year over year but declined 1.5% sequentially.
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 remained a tailwind.
Nights and Experiences Booked remained strong in North America, mainly driven by the United States. Also, the same generated higher value in EMEA and Latin America. In the Asia Pacific region, the metric improved sequentially except in China where a spike in COVID cases was confirmed, followed by severe restrictions.
In the reported quarter, Airbnb had more than six million active listings. Latin America reported the most active listings growth, followed by North America and EMEA. Additionally, growth for gross nights booked remained strongest in non-urban areas. Further, continuous recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions aided the quarterly performance.
Nights and Experiences Booked were 102.1 million, increasing 59% year over year.
Gross Booking Value amounted to $17.2 billion, which rose 67% from the prior-year reported figure.
Gross Booking Value per Night and Experience Booked (or Average Daily Rates) was $168.1, up 5% year over year, driven by price appreciation.
In terms of trip length, long-term stays of 28 days or more remained the fastest-growing category in the first quarter. Also, 48% of gross nights booked were from stays of at least seven nights. However, long-term stays constituted 21% of gross nights booked, down from 24% in the same quarter last year.
Operating Results
Adjusted EBITDA for the first quarter was $229 million against ($59) million reported in the same quarter last year.
Operations and support costs increased 25.7% year over year to $233 million. Product development expenses were $362.9 million, down 0.04% year over year. Sales and marketing expenses rose 50.4% from the year-ago quarter’s figure to $344.6 million. General and administrative expenses amounted to $210.6 million, up 11% year over year.
For the first quarter, Airbnb reported a net loss of $19 million compared with the net loss of $1.2 billion in the first quarter of 2021.
Balance Sheet & Cash Flow
As of Mar 31, 2022, cash and cash equivalents, marketable securities, and restricted cash amounted to $9.34 billion, up from $8.34 billion reported on Dec 31, 2021.
Long-term debt as of Mar 31, 2022, was $1.984 billion. ABNB’s long-term debt was $1.983 billion as of Dec 31, 2021.
Unearned fees were $1.75 billion at the first-quarter-end compared with $903.7 million at the previous-quarter-end.
Net cash provided by operating activities was $1.2 billion for the first quarter of 2022 compared with $382 million in the fourth quarter of 2021.
Additionally, free cash flow was $1.2 billion for the first quarter.
Guidance
For second-quarter 2022, Airbnb expects revenues between $2.03 billion and $2.13 billion. The Zacks Consensus Estimate for revenues is pegged at $1.98 billion.
Airbnb anticipates the Nights and Experiences Booked growth rate in the second quarter to nearly match the growth rate registered in the reported quarter. Management also expects Average Daily Rates to be stagnant with the year-ago reported figure.
Strengthening demand in North America, EMEA and Latin America owing to the renewed rush in the summer travel season is expected to continue aiding the performance of ABNB in the days ahead.
However, uncertainties related to the coronavirus pandemic, impact on travel due to the Ukraine-Russia conflict and consumer price sensitivity are likely to persist in the second quarter.
Zacks Rank & Stocks to Consider
Currently, Airbnb has a Zacks Rank #3 (Hold). Investors interested in the broader technology sector can consider stocks like Jabil (JBL - Free Report) , Analog Devices (ADI - Free Report) , and Broadcom (AVGO - Free Report) . While Jabil currently sports a Zacks Rank #1 (Strong Buy), Analog Devices and Broadcom carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jabil has gained 13.4% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.
Analog Devices has gained 4.6% over a year. The long-term earnings growth rate for ADI is currently projected at 12.3%.
Broadcom has gained 30.7% over a year. The long-term earnings growth rate for AVGO is currently projected at 15.6%.
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Airbnb's (ABNB) Loss Narrows in Q1, Revenues Increase Y/Y
Airbnb (ABNB - Free Report) reported a loss of 3 cents per share for first-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 28 cents per share. ABNB incurred a loss of $1.95 per share in the prior-year quarter. However, earnings of 8 cents were delivered in the previous quarter.
Revenues of $1.51 billion surpassed the consensus mark of $1.45 billion. Further, the top line increased 70.1% year over year but declined 1.5% sequentially.
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 remained a tailwind.
Nights and Experiences Booked remained strong in North America, mainly driven by the United States. Also, the same generated higher value in EMEA and Latin America. In the Asia Pacific region, the metric improved sequentially except in China where a spike in COVID cases was confirmed, followed by severe restrictions.
In the reported quarter, Airbnb had more than six million active listings. Latin America reported the most active listings growth, followed by North America and EMEA. Additionally, growth for gross nights booked remained strongest in non-urban areas. Further, continuous recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions aided the quarterly performance.
Airbnb, Inc. Price, Consensus and EPS Surprise
Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote
Quarterly Details
Nights and Experiences Booked were 102.1 million, increasing 59% year over year.
Gross Booking Value amounted to $17.2 billion, which rose 67% from the prior-year reported figure.
Gross Booking Value per Night and Experience Booked (or Average Daily Rates) was $168.1, up 5% year over year, driven by price appreciation.
In terms of trip length, long-term stays of 28 days or more remained the fastest-growing category in the first quarter. Also, 48% of gross nights booked were from stays of at least seven nights. However, long-term stays constituted 21% of gross nights booked, down from 24% in the same quarter last year.
Operating Results
Adjusted EBITDA for the first quarter was $229 million against ($59) million reported in the same quarter last year.
Operations and support costs increased 25.7% year over year to $233 million. Product development expenses were $362.9 million, down 0.04% year over year. Sales and marketing expenses rose 50.4% from the year-ago quarter’s figure to $344.6 million. General and administrative expenses amounted to $210.6 million, up 11% year over year.
For the first quarter, Airbnb reported a net loss of $19 million compared with the net loss of $1.2 billion in the first quarter of 2021.
Balance Sheet & Cash Flow
As of Mar 31, 2022, cash and cash equivalents, marketable securities, and restricted cash amounted to $9.34 billion, up from $8.34 billion reported on Dec 31, 2021.
Long-term debt as of Mar 31, 2022, was $1.984 billion. ABNB’s long-term debt was $1.983 billion as of Dec 31, 2021.
Unearned fees were $1.75 billion at the first-quarter-end compared with $903.7 million at the previous-quarter-end.
Net cash provided by operating activities was $1.2 billion for the first quarter of 2022 compared with $382 million in the fourth quarter of 2021.
Additionally, free cash flow was $1.2 billion for the first quarter.
Guidance
For second-quarter 2022, Airbnb expects revenues between $2.03 billion and $2.13 billion. The Zacks Consensus Estimate for revenues is pegged at $1.98 billion.
Airbnb anticipates the Nights and Experiences Booked growth rate in the second quarter to nearly match the growth rate registered in the reported quarter. Management also expects Average Daily Rates to be stagnant with the year-ago reported figure.
Strengthening demand in North America, EMEA and Latin America owing to the renewed rush in the summer travel season is expected to continue aiding the performance of ABNB in the days ahead.
However, uncertainties related to the coronavirus pandemic, impact on travel due to the Ukraine-Russia conflict and consumer price sensitivity are likely to persist in the second quarter.
Zacks Rank & Stocks to Consider
Currently, Airbnb has a Zacks Rank #3 (Hold). Investors interested in the broader technology sector can consider stocks like Jabil (JBL - Free Report) , Analog Devices (ADI - Free Report) , and Broadcom (AVGO - Free Report) . While Jabil currently sports a Zacks Rank #1 (Strong Buy), Analog Devices and Broadcom carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jabil has gained 13.4% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.
Analog Devices has gained 4.6% over a year. The long-term earnings growth rate for ADI is currently projected at 12.3%.
Broadcom has gained 30.7% over a year. The long-term earnings growth rate for AVGO is currently projected at 15.6%.