Brian Chesky, CEO of Airbnb, attends the Cannes Lions on June 20, 2016 in Cannes, France.
Richard Bord | Getty Images
Shares of Airbnb fell more than 3% on Thursday after the company released its second-quarter results. The company beat Wall Street expectations for earnings and bookings, but warned of the expected volatility of the Covid delta variant.
This is how the company did it:
- Income: Loss of 11 cents per share
- Gain: $1.34 billion vs. $1.26 billion forecast by Refinitiv
The company reported 83.1 million nights and booked experiences, up 29% from the first quarter and a whopping 197% year-over-year after the travel industry collapsed a year ago in the wake of the Covid-19 pandemic. . Analysts polled by StreetAccount expected 79.2 million nights and booked experiences.
Revenue came in at $1.34 billion, an increase of nearly 300% year over year.
Gross Booking Value, Airbnb’s way of tracking host revenue, service fees, cleaning fees and taxes, totaled $13.4 billion, up 320% year over year and above the FactSet consensus of $11.56 billion.
Airbnb’s net loss fell to $68 million for the quarter, down more than 88% from a net loss of $575.6 million a year earlier.
The average daily rate rose to $161, up from $160 in the previous quarter, reflecting an increase in the amount customers spend on homes and experiences. That figure rose 41% year-on-year.
In the letter to shareholders, the company warned that it is bracing itself for volatility due to the Covid-19 delta variant. Airbnb said it expects delta to influence travel behavior, particularly with regard to how often and when guests book and cancel.
But despite the delta, the company said it expects the third quarter to deliver its strongest quarterly revenue ever. Airbnb also said it expects the third quarter to deliver its highest ever adjusted EBITDA dollars and margin.
The company said the progress of vaccination and containment of new variants will be variables that will affect how the company performs in the fourth quarter.
“We don’t yet know how much people will be willing to travel in the fall compared to the summer,” the company said in its shareholder letter.