Airbnb Earnings: What To Look For From ABNB

Jabin Bastian /
2023/05/08 4:48 am EDT

Online accommodations platform Airbnb (NASDAQ: ABNB) will be reporting results tomorrow after market close. Here's what you need to know.

Last quarter Airbnb reported revenues of $1.9 billion, up 24.1% year on year, beating analyst revenue expectations by 2.2%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and growing number of users. The company reported 88.2 million nights booked, up 20.2% year on year.

Is Airbnb buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Airbnb's revenue to grow 18.5% year on year to $1.79 billion, slowing down from the 70.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.

Airbnb Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downward 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 6.29%.

Looking at Airbnb's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Teladoc reported revenues up 11.3% year on year, exceeding estimates by 1.78%. Shutterstock traded flat on the results, Teladoc was up 4.97%. Read our full analysis of Shutterstock's results here and Teladoc's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4.9% over the last month. Airbnb is up 7.26% during the same time, and is heading into the earnings with analyst price target of $141.6, compared to share price of $120.99.

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.

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