Airbnb (ABNB) earnings Q2 2022

Airbnb beat Wall Avenue estimates for earnings and posted revenue that was according to estimates for the second quarter. The corporate additionally introduced a $2 billion share buyback program.

Shares have been down about 9% after hours, regardless of what seemed to be a robust report, suggesting Wall Avenue was searching for quicker development and a income beat. The corporate additionally mentioned it was impacted by flight cancellations on the finish of the quarter.

Listed here are the important thing numbers:

• Earnings per share: $0.56 vs. $0.43 anticipated by analysts, in line with Refinitiv.
• Income: $2.10 billion vs. $2.11 billion anticipated by analysts, in line with Refinitiv.

Airbnb, like Uber, benefited from a rise in client spending on actions versus items. Income jumped 58% year-over-year to $2.1 billion serving to to drive the corporate’s most worthwhile second quarter to this point. Nonetheless, that development was slower than it was final quarter when income surged 70% over the primary quarter of 2020.

Airbnb reported web earnings of $379 million, up from a lack of $68 million within the year-ago quarter.

The corporate mentioned it tightened spending on the peak of the pandemic, which helped make it leaner and extra targeted, and that it is tailored its enterprise as journey continues to alter. But it surely wasn’t totally immune from a surge in canceled flights.

“We did see some elevated cancellations at the back of the quarter relative to our forecast,” Airbnb CFO Dave Stephenson mentioned on a name with buyers. “We imagine that among the elevated cancellations have been associated to flight cancellations world wide, but it surely was largely in North America in the direction of the tip of Q2 2022”

Airbnb anticipates document income in the course of the third quarter regardless of headwinds from overseas alternate fluctuations, particularly the weakening euro versus the greenback. It guided third quarter income to land between $2.78 billion and $2.88 billion, forward of StreetAccount’s $2.77 billion estimate. The corporate mentioned it broke a single-day income document on July 4, which it says indicators a robust summer season season forward.

Airbnb’s free money stream declined quarter over quarter, which could possibly be one cause shares are within the purple.

CEO Brian Chesky addressed that concern with CNBC’s Jim Cramer on “Mad Money.”

“Free money stream was $795 million, and we had adjusted EBITDA of $711 million.. in the event you exclude FX, that is $764 million. So what we’re truly seeing is a few metronomic enhancements in our free money stream yr over yr and I anticipate that the approaching quarter goes to be extraordinarily robust for us.”

For the second quarter, Airbnb reported greater than 103 million nights and experiences booked. It is the corporate’s largest quarterly quantity ever, however fell quick StreetAccount estimates of 106.4 million nights and experiences booked. 

Gross reserving worth, which Airbnb makes use of to trace host earnings, service charges, cleansing charges and taxes, totaled $17 billion within the second quarter, up 27% yr over yr. That was slower than the 67% development posted within the first quarter.

And whereas many firms are calling staff again to the workplace, long-term stays, the place visitors keep in a house for 28 days or extra, remained Airbnb’s fastest-growing section, with 25% development over the year-ago quarter.

The corporate mentioned gross nights booked for cross-border journey surpassed pre-pandemic ranges in the course of the quarter and doubled in comparison with the identical quarter final yr.

Common every day charges rose 40% when in comparison with pre-pandemic ranges in 2019, reaching $164. That is up 7% from the identical quarter a yr in the past, excluding the consequences of forex fluctuations. The corporate anticipates ADR to be flat within the third quarter on a year-over-year foundation.