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Airbnb, Inc. (ABNB) Up 11.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Airbnb, Inc. (ABNB - Free Report) . Shares have added about 11.2% 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 Q4 Earnings Beat Estimates, Revenues Up Y/Y
Airbnb 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.
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.
Airbnb expects revenues to benefit from the timing of Easter.
The adjusted EBITDA margin is expected to increase year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 20.94% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. 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 D. 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) Up 11.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Airbnb, Inc. (ABNB - Free Report) . Shares have added about 11.2% 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 Q4 Earnings Beat Estimates, Revenues Up Y/Y
Airbnb 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.
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.
Airbnb expects revenues to benefit from the timing of Easter.
The adjusted EBITDA margin is expected to increase year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 20.94% due to these changes.
VGM Scores
At this time, Airbnb, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. 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 D. 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.