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Airbnb, Inc. (ABNB) Down 17.1% 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 17.1% 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 the most recent earnings report in order to get a better handle on the important drivers.
Airbnb Q4 Earnings Beat Estimates
Airbnb reported earnings of 48 cents per share for fourth-quarter 2022, which beat the Zacks Consensus Estimate by 77.8%. The figure significantly jumped from earnings of 8 cents per share reported in the year-ago quarter.
Revenues of $1.9 billion increased 24% on a reported basis and 31% on FX neutral basis, respectively, year over year. The top line also surpassed the Zacks Consensus Estimate of $1.87 billion.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growth in 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.
Quarterly Details
Nights and Experiences Booked were 88.2 million, increasing 20% on a year-over-year basis. The metric was driven by strong performances in all regions, especially Asia Pacific.
GBV amounted to $13.5 billion, which rose 20% from the prior-year quarter’s reported figure.
GBV per Night and Experience Booked (or Average Daily Rates) was $152.8, down 1% year over year.
In terms of trip length, the category of long-term stays of 28 days or more which accounted for 21% of overall gross nights booked, remained a positive. Further, 46% of gross nights booked came from stays of at least seven nights.
In the reported quarter, gross nights booked in high-density urban areas represented 51% of overall gross nights booked.
Cross-border travel for the fourth quarter accounted for 44% of total gross nights booked, down from 49% in the same quarter last year.
Operating Results
Adjusted EBITDA was $506 million, up 52% from prior-year quarter’s level.
Operations and support costs, product development expenses, and general and administrative expenses were $260 million, $397 million and $256 million, increased 15.5%, 7.9% and 17.9%, respectively, year over year. Sales and marketing expenses rose 16.9% from the year-ago quarter’s figure to $409 million.
For the fourth quarter, Airbnb reported operating income of $235 million, significantly up from $76 million reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash and cash equivalents, and marketable securities amounted to $9.62 billion compared with $9.63 billion as of Sep 30, 2022.
Long-term debt as of Dec 31, 2022, was $1.987 billion compared with $1.986 billion as of Sep 30, 2022.
Net cash provided by operating activities was $463 million for the fourth quarter of 2022, down from $966 million in the prior quarter.
Airbnb generated a free cash flow of $455 million in the reported quarter.
Guidance
For first-quarter 2023, Airbnb expects revenues between $1.75 billion and $1.82 billion, implying year-over-year growth in the band of 16-21% on a reported basis and 18-23% on FX neutral basis, respectively.
ABNB anticipates the year-over-year growth of Nights and Experiences Booked to be strong like that in fourth-quarter 2022.
Adjusted EBITDA is expected to be slightly down compared with year-ago quarter’s figure.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9350% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It comes with little surprise Airbnb, Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Airbnb, Inc. (ABNB) Down 17.1% 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 17.1% 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 the most recent earnings report in order to get a better handle on the important drivers.
Airbnb Q4 Earnings Beat Estimates
Airbnb reported earnings of 48 cents per share for fourth-quarter 2022, which beat the Zacks Consensus Estimate by 77.8%. The figure significantly jumped from earnings of 8 cents per share reported in the year-ago quarter.
Revenues of $1.9 billion increased 24% on a reported basis and 31% on FX neutral basis, respectively, year over year. The top line also surpassed the Zacks Consensus Estimate of $1.87 billion.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growth in 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.
Quarterly Details
Nights and Experiences Booked were 88.2 million, increasing 20% on a year-over-year basis. The metric was driven by strong performances in all regions, especially Asia Pacific.
GBV amounted to $13.5 billion, which rose 20% from the prior-year quarter’s reported figure.
GBV per Night and Experience Booked (or Average Daily Rates) was $152.8, down 1% year over year.
In terms of trip length, the category of long-term stays of 28 days or more which accounted for 21% of overall gross nights booked, remained a positive. Further, 46% of gross nights booked came from stays of at least seven nights.
In the reported quarter, gross nights booked in high-density urban areas represented 51% of overall gross nights booked.
Cross-border travel for the fourth quarter accounted for 44% of total gross nights booked, down from 49% in the same quarter last year.
Operating Results
Adjusted EBITDA was $506 million, up 52% from prior-year quarter’s level.
Operations and support costs, product development expenses, and general and administrative expenses were $260 million, $397 million and $256 million, increased 15.5%, 7.9% and 17.9%, respectively, year over year. Sales and marketing expenses rose 16.9% from the year-ago quarter’s figure to $409 million.
For the fourth quarter, Airbnb reported operating income of $235 million, significantly up from $76 million reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash and cash equivalents, and marketable securities amounted to $9.62 billion compared with $9.63 billion as of Sep 30, 2022.
Long-term debt as of Dec 31, 2022, was $1.987 billion compared with $1.986 billion as of Sep 30, 2022.
Net cash provided by operating activities was $463 million for the fourth quarter of 2022, down from $966 million in the prior quarter.
Airbnb generated a free cash flow of $455 million in the reported quarter.
Guidance
For first-quarter 2023, Airbnb expects revenues between $1.75 billion and $1.82 billion, implying year-over-year growth in the band of 16-21% on a reported basis and 18-23% on FX neutral basis, respectively.
ABNB anticipates the year-over-year growth of Nights and Experiences Booked to be strong like that in fourth-quarter 2022.
Adjusted EBITDA is expected to be slightly down compared with year-ago quarter’s figure.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9350% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It comes with little surprise Airbnb, Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.