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Airbnb, Inc. (ABNB) Down 25.3% 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 25.3% 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 drivers.
Airbnb Reports Q1 Loss, Revenues Rise Y/Y
Airbnb 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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 46.12% due to these changes.
VGM Scores
Currently, Airbnb, Inc. has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been 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 25.3% 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 25.3% 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 drivers.
Airbnb Reports Q1 Loss, Revenues Rise Y/Y
Airbnb 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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 46.12% due to these changes.
VGM Scores
Currently, Airbnb, Inc. has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been 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.