By Doyinsola Oladipo and Aishwarya Jain
(Reuters) – Vacation rental company Airbnb reported higher quarterly profit on Wednesday but forecast second-quarter revenue below Wall Street expectations, sending the company’s shares down 7% after the bell.
In the first quarter, lodging companies saw travel demand in regions outside North America boost profits as travel accelerates in Asia-Pacific and Latin America.
Airbnb’s first-quarter revenue increased 18% year-over-year to $2.14 billion. However, the company expects second-quarter revenue in the range of $2.68 billion to $2.74 billion, lower than analysts’ estimates of $2.74 billion, in part due to lower rates. changes and the Easter calendar.
The holidays were beneficial in the first quarter, but could weigh on second-quarter earnings, the company said.
Room nights and experiences booked in the first quarter increased 9.5% year over year to approximately $133 million, driven by 21% and 19% growth in bookings in Asia Pacific and in Latin America, respectively. The company said bookings in North America “slowed slightly” during the quarter.
The San Francisco-based company reported net income of $264 million, or 41 cents per share, for the quarter ended March, compared with $117 million, or 18 cents per share, during the same period in 2023. .
The average cost per night in an Airbnb or average daily rate was $173 during the reporting quarter, an increase of 3% from the previous year. The company saw an increase in shorter stays and entire house bookings, which generated higher margins.
Active listings on the platform increased 17% year-over-year, with Asia and Latin America leading the additions.
Looking ahead to the summer, Airbnb said it expects year-over-year revenue growth to accelerate in the third quarter, in part due to travel demand centered around international events like the Olympic Games and the European Cup.
(Reporting by Aishwarya Jain in Bengaluru and Doyinsola Oladipo in New York; editing by Shailesh Kuber)
