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Why Is Airbnb, Inc. (ABNB) Up 9.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Airbnb, Inc. (ABNB - Free Report) . Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Airbnb, Inc. due for a pullback? 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 Q3 Earnings Beat Estimates, Revenues Up Y/Y
Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year.
Revenues of $3.4 billion increased 18% on a reported basis and 14% on a forex-neutral basis, respectively, year over year.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growing Gross Booking Value (GBV) remained a tailwind.
Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, remained positive. Increasing guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Strong momentum in active listings acted as a tailwind.
Quarterly Details
Nights and Experiences Booked were 113.2 million, up 14% on a year-over-year basis. The metric was driven by strong performances in all regions.
GBV amounted to $18.3 billion, which rose 17% from the prior-year quarter’s reported figure. GBV per Night and Experience Booked (or Average Daily Rates) was $161, which increased 3% on a year-over-year basis.
In the reported quarter, active listings increased 19% year over year. Airbnb’s total active listings are now more than 7 million. The company witnessed double-digit supply growth across all regions, with the most growth in Asia Pacific and Latin America.
In terms of trip length, the category of long-term stays of 28 days or more, which accounted for 18% of overall gross nights booked, remained positive. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights.
Guests traveling more than 3,000 miles increased 18% year over year. Cross-border represented 45% of total gross nights booked, up from 43% in the year-ago quarter.
Operating Results
Adjusted EBITDA was $1.8 billion, up 26% year over year.
Operations and support costs increased 9.9% year over year to $299 million. Product development expenses increased 5.6% year over year to $244 million.
Sales and marketing expenses rose 3.4% from the year-ago quarter’s figure to $367 million. General and administrative expenses were $243 million, up 29.9% year over year.
For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents and short-term investments amounted to $10.96 billion compared with $10.4 billion as of Jun 30, 2023.
Long-term debt, as of Sep 30, 2023, was $1.990 billion compared with $1.989 billion as of Jun 30, 2023.
Net cash provided by operating activities was $1.3 billion for the third quarter of 2023, significantly down from $909 million in the previous quarter.
Airbnb generated a free cash flow of $1.3 billion compared with $900 million in the previous quarter.
Guidance
For fourth-quarter 2023, the company expects revenues between $2.13 billion and $2.17 billion, implying year-over-year growth in the band of 12-14% on a reported basis.
Airbnb expects greater volatility in travel demand, subject to macroeconomic trends and geopolitical conflicts in the fourth quarter.
Adjusted EBITDA margin is expected to increase year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.98% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. 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 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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Why Is Airbnb, Inc. (ABNB) Up 9.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Airbnb, Inc. (ABNB - Free Report) . Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Airbnb, Inc. due for a pullback? 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 Q3 Earnings Beat Estimates, Revenues Up Y/Y
Airbnb reported third-quarter 2023 earnings of $2.39 per share, which jumped 33.5% year over year.
Revenues of $3.4 billion increased 18% on a reported basis and 14% on a forex-neutral basis, respectively, year over year.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked. Also, growing Gross Booking Value (GBV) remained a tailwind.
Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, remained positive. Increasing guest demand and a continuous recovery in cross-border travel aided the quarterly performance.
Strong momentum in active listings acted as a tailwind.
Quarterly Details
Nights and Experiences Booked were 113.2 million, up 14% on a year-over-year basis. The metric was driven by strong performances in all regions.
GBV amounted to $18.3 billion, which rose 17% from the prior-year quarter’s reported figure. GBV per Night and Experience Booked (or Average Daily Rates) was $161, which increased 3% on a year-over-year basis.
In the reported quarter, active listings increased 19% year over year. Airbnb’s total active listings are now more than 7 million. The company witnessed double-digit supply growth across all regions, with the most growth in Asia Pacific and Latin America.
In terms of trip length, the category of long-term stays of 28 days or more, which accounted for 18% of overall gross nights booked, remained positive. In the reported quarter, gross nights booked in high-density urban areas increased 2.2% year over year and accounted for 49% of gross nights.
Guests traveling more than 3,000 miles increased 18% year over year. Cross-border represented 45% of total gross nights booked, up from 43% in the year-ago quarter.
Operating Results
Adjusted EBITDA was $1.8 billion, up 26% year over year.
Operations and support costs increased 9.9% year over year to $299 million. Product development expenses increased 5.6% year over year to $244 million.
Sales and marketing expenses rose 3.4% from the year-ago quarter’s figure to $367 million. General and administrative expenses were $243 million, up 29.9% year over year.
For the third quarter, Airbnb reported an operating income of $1.5 billion, up 24.4% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents and short-term investments amounted to $10.96 billion compared with $10.4 billion as of Jun 30, 2023.
Long-term debt, as of Sep 30, 2023, was $1.990 billion compared with $1.989 billion as of Jun 30, 2023.
Net cash provided by operating activities was $1.3 billion for the third quarter of 2023, significantly down from $909 million in the previous quarter.
Airbnb generated a free cash flow of $1.3 billion compared with $900 million in the previous quarter.
Guidance
For fourth-quarter 2023, the company expects revenues between $2.13 billion and $2.17 billion, implying year-over-year growth in the band of 12-14% on a reported basis.
Airbnb expects greater volatility in travel demand, subject to macroeconomic trends and geopolitical conflicts in the fourth quarter.
Adjusted EBITDA margin is expected to increase year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.98% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. 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 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.