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Airbnb (ABNB) to Report Q3 Earnings: What's in the Cards?
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Airbnb (ABNB - Free Report) is scheduled to report third-quarter 2023 results on Nov 1.
For the third quarter, Airbnb expects revenues between $3.3 billion and $3.4 billion, implying year-over-year growth in the band of 14-18% on a reported basis.
The Zacks Consensus Estimate for the same is pegged at $3.37 billion, indicating growth of 16.9% from the year-ago quarter’s reported value.
The Zacks Consensus Estimate for earnings is pegged at $2.06 per share, suggesting growth of 15.1% from the year-ago reported figure.
Airbnb’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 52.6%.
Let’s see how things have shaped up for this announcement.
Airbnb’s third-quarter 2023 results are expected to have benefited from the solid momentum in Nights and Experiences booked, particularly in the Asia-Pacific region.
The Zacks Consensus Estimate for Nights and Experiences Booked is pegged at 113 million, indicating growth of 13% from the year-ago reported figure.
Further, the growing Average Daily Rate, driven by foreign exchange, mix shift of larger homes, and geographic mix, is expected to have impacted the to-be-reported quarterly performance.
Moreover, strength across Cross-border nights booked, owing to increasing international travel demand, is likely to have aided Airbnb’s performance in the to-be-reported quarter.
Additionally, increasing travel demand, growing awareness around hosting, and introducing new tools for hosts are likely to have resulted in strong supply growth across all regions and market types in the quarter under review.
Also, strong momentum in new active listings, driven by reduced fees for longer stays and monthly discounts, is likely to have been another positive.
All these factors are expected to have driven growth in gross booking value (GBV) in the third quarter. The Zacks Consensus Estimate for GBV is pegged at $17.97 billion, indicating growth of 15.2% from the reported figure in the year-ago quarter.
However, intense competition in the online travel market is anticipated to have remained an overhang in the to-be-reported quarter.
Also, growing macroeconomic challenges are likely to have been a major concern.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Airbnb this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Airbnb has an Earnings ESP of -10.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ABNB carries a Zacks Rank #3 at present.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for FSLY’s earnings is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year period’s reported figure.
Image: Bigstock
Airbnb (ABNB) to Report Q3 Earnings: What's in the Cards?
Airbnb (ABNB - Free Report) is scheduled to report third-quarter 2023 results on Nov 1.
For the third quarter, Airbnb expects revenues between $3.3 billion and $3.4 billion, implying year-over-year growth in the band of 14-18% on a reported basis.
The Zacks Consensus Estimate for the same is pegged at $3.37 billion, indicating growth of 16.9% from the year-ago quarter’s reported value.
The Zacks Consensus Estimate for earnings is pegged at $2.06 per share, suggesting growth of 15.1% from the year-ago reported figure.
Airbnb’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 52.6%.
Let’s see how things have shaped up for this announcement.
Airbnb, Inc. Price and EPS Surprise
Airbnb, Inc. price-eps-surprise | Airbnb, Inc. Quote
Key Factors to Note
Airbnb’s third-quarter 2023 results are expected to have benefited from the solid momentum in Nights and Experiences booked, particularly in the Asia-Pacific region.
The Zacks Consensus Estimate for Nights and Experiences Booked is pegged at 113 million, indicating growth of 13% from the year-ago reported figure.
Further, the growing Average Daily Rate, driven by foreign exchange, mix shift of larger homes, and geographic mix, is expected to have impacted the to-be-reported quarterly performance.
Moreover, strength across Cross-border nights booked, owing to increasing international travel demand, is likely to have aided Airbnb’s performance in the to-be-reported quarter.
Additionally, increasing travel demand, growing awareness around hosting, and introducing new tools for hosts are likely to have resulted in strong supply growth across all regions and market types in the quarter under review.
Also, strong momentum in new active listings, driven by reduced fees for longer stays and monthly discounts, is likely to have been another positive.
All these factors are expected to have driven growth in gross booking value (GBV) in the third quarter. The Zacks Consensus Estimate for GBV is pegged at $17.97 billion, indicating growth of 15.2% from the reported figure in the year-ago quarter.
However, intense competition in the online travel market is anticipated to have remained an overhang in the to-be-reported quarter.
Also, growing macroeconomic challenges are likely to have been a major concern.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Airbnb this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Airbnb has an Earnings ESP of -10.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ABNB carries a Zacks Rank #3 at present.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +14.09% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for FSLY’s earnings is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.