Airbnb (ABNB) Reports Q3: Everything You Need To Know Ahead Of Earnings

Max Juang /
2023/10/31 3:11 am EDT

Online accommodations platform Airbnb (NASDAQ:ABNB) will be reporting results tomorrow after market hours. Here's what to expect.

Last quarter Airbnb reported revenues of $2.48 billion, up 18.1% year on year, beating analyst revenue expectations by 2.69%. It was a mixed quarter for the company, with Nights and Experiences Booked, a key volume measure for Airbnb, missing expectations, although Gross Bookings was in line with expectations. However, revenue came in ahead of expectations, as did revenue guidance for the next quarter. The company reported 115.1 million nights booked, up 11% year on year.

Is Airbnb buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting Airbnb's revenue to grow 16.8% year on year to $3.37 billion, slowing down from the 28.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.

Airbnb Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing eight upwards revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 3.2%.

Looking at Airbnb's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Teladoc delivered top-line growth of 7.99% year on year, missing analyst estimates by 0.43% and Chegg reported revenue decline of 4.18% year on year, exceeding estimates by 3.76%. Teladoc traded down 4.3% on the results, Chegg was down 9.6%.

Read our full analysis of Teladoc's results here and Chegg's results here.

Tech stocks have been under pressure since the end of last year and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 7.35% over the last month. Airbnb is down 14.5% during the same time, and is heading into the earnings with analyst price target of $142.4, compared to share price of $116.8.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.