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Airbnb (ABNB - Free Report) reported adjusted earnings of 76 cents per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate by 13.4%. The figure increased 58.4% year over year.
Revenues of $2.22 billion increased 17% on a reported basis and 14% on an FX-neutral basis, respectively, year over year. The top line also surpassed the Zacks Consensus Estimate of $2.16 billion.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked.
Growing gross nights booked, owing to the solid momentum across high-density urban areas, remained a positive. Increasing guest demand, especially among first-time bookers, was a plus. Continuous recovery in cross-border travel aided the quarterly performance.
These factors aided growth in the company’s Gross Booking Value (GBV) in the fourth quarter.
Also, a solid momentum in Airbnb app downloads contributed well.
Nights and Experiences Booked were 98.8 million, up 12% on a year-over-year basis. The metric was driven by strong performances in all regions, especially the Asia Pacific and Latin America.
GBV amounted to $15.5 billion, which rose 15% from the prior-year quarter’s reported figure.
GBV per Night and Experience Booked (or Average Daily Rates) was $156.73, which grew 3% on a year-over-year basis.
In terms of trip length, the category of long-term stays of 28 days or more accounted for 19% of overall gross nights booked.
In the reported quarter, gross nights booked in high-density urban areas grew 11% year over year and represented 51% of overall gross nights booked.
Cross-border nights booked was up 13% year over year and accounted for 44% of total gross nights booked.
Operating Results
Adjusted EBITDA was $738 million, up 46% from the prior-year quarter.
Operations and support costs, product development expenses, and sales and marketing expenses were $271 million, $432 million and $424 billion, increasing 4.2%, 8.5% and 3.9%, respectively, year over year. General and administrative expenses rose significantly to $1.2 billion from the $256 million reported in the year-ago quarter due to non-recurring tax withholding expenses and lodging tax reserves.
For the fourth quarter, Airbnb reported an operating loss of $496 million against the $235 million of operating income reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2023, cash and cash equivalents, and short-term investments amounted to $10.1 billion compared with $10.96 billion as of Sep 30, 2023.
Long-term debt, as of Dec 31, 2023, was $1.991 billion compared with $1.990 billion as of Sep 30, 2023.
Net cash provided by operating activities was $63 million for the fourth quarter of 2023, significantly down from $1.3 billion in the previous quarter.
Airbnb generated a free cash flow of $46 million in the fourth quarter.
Guidance
For first-quarter 2024, the company expects revenues between $2.03 billion and $2.07 billion, implying year-over-year growth of 12-14% on a reported basis. The Zacks Consensus Estimate is pegged at $2.04 billion.
Airbnb expects revenues to benefit from the timing of Easter.
The adjusted EBITDA margin is expected to increase year over year.
Image: Bigstock
Airbnb (ABNB) Q4 Earnings & Revenues Beat, Increase Y/Y
Airbnb (ABNB - Free Report) reported adjusted earnings of 76 cents per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate by 13.4%. The figure increased 58.4% year over year.
Revenues of $2.22 billion increased 17% on a reported basis and 14% on an FX-neutral basis, respectively, year over year. The top line also surpassed the Zacks Consensus Estimate of $2.16 billion.
The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked.
Growing gross nights booked, owing to the solid momentum across high-density urban areas, remained a positive. Increasing guest demand, especially among first-time bookers, was a plus. Continuous recovery in cross-border travel aided the quarterly performance.
These factors aided growth in the company’s Gross Booking Value (GBV) in the fourth quarter.
Also, a solid momentum in Airbnb app downloads contributed well.
Airbnb, Inc. Price, Consensus and EPS Surprise
Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote
Quarterly Details
Nights and Experiences Booked were 98.8 million, up 12% on a year-over-year basis. The metric was driven by strong performances in all regions, especially the Asia Pacific and Latin America.
GBV amounted to $15.5 billion, which rose 15% from the prior-year quarter’s reported figure.
GBV per Night and Experience Booked (or Average Daily Rates) was $156.73, which grew 3% on a year-over-year basis.
In terms of trip length, the category of long-term stays of 28 days or more accounted for 19% of overall gross nights booked.
In the reported quarter, gross nights booked in high-density urban areas grew 11% year over year and represented 51% of overall gross nights booked.
Cross-border nights booked was up 13% year over year and accounted for 44% of total gross nights booked.
Operating Results
Adjusted EBITDA was $738 million, up 46% from the prior-year quarter.
Operations and support costs, product development expenses, and sales and marketing expenses were $271 million, $432 million and $424 billion, increasing 4.2%, 8.5% and 3.9%, respectively, year over year. General and administrative expenses rose significantly to $1.2 billion from the $256 million reported in the year-ago quarter due to non-recurring tax withholding expenses and lodging tax reserves.
For the fourth quarter, Airbnb reported an operating loss of $496 million against the $235 million of operating income reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2023, cash and cash equivalents, and short-term investments amounted to $10.1 billion compared with $10.96 billion as of Sep 30, 2023.
Long-term debt, as of Dec 31, 2023, was $1.991 billion compared with $1.990 billion as of Sep 30, 2023.
Net cash provided by operating activities was $63 million for the fourth quarter of 2023, significantly down from $1.3 billion in the previous quarter.
Airbnb generated a free cash flow of $46 million in the fourth quarter.
Guidance
For first-quarter 2024, the company expects revenues between $2.03 billion and $2.07 billion, implying year-over-year growth of 12-14% on a reported basis. The Zacks Consensus Estimate is pegged at $2.04 billion.
Airbnb expects revenues to benefit from the timing of Easter.
The adjusted EBITDA margin is expected to increase year over year.
Zacks Rank & Other Stocks to Consider
Currently, Airbnb has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are CrowdStrike (CRWD - Free Report) , Badger Meter (BMI - Free Report) and AMETEK (AME - Free Report) . CrowdStrike currently sports a Zacks Rank #1 (Strong Buy), and Badger Meter and AMETEK carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CrowdStrike shares have gained 26.3% in the year-to-date period. The long-term earnings growth rate for CRWD is projected at 36.07%
Badger Meter shares have gained 15.7% in the year-to-date period. The long-term earnings growth rate for BMI is projected at 12.27%.
AMETEK shares have gained 13.5% in the year-to-date period. The long-term earnings growth rate for AME is projected at 9.19%.