Earnings To Watch: Airbnb (ABNB) Reports Q1 Results Tomorrow

Kayode Omotosho /
2022/05/02 7:08 am EDT

Online accommodations platform Airbnb (NASDAQ: ABNB) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter Airbnb reported revenues of $1.53 billion, up 78.3% year on year, beating analyst revenue expectations by 5.02%. It was a stunning quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth. The company reported 73.4 million nights booked, up 58.5% 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 63.8% year on year to $1.45 billion, improving on the 5.35% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 per share.

Airbnb Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing five upward and three downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 11.7%.

Looking at Airbnb's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Snap delivered top-line growth of 38% year on year, missing analyst estimates by 0.57% and Meta reported revenues up 6.63% year on year, missing analyst estimates by 8.2%. Snap traded up 8.2% on the results, Meta was up 12.1%. Read our full analysis of Snap's results here and Meta's results here.

Technology stocks have been hit hard on fears of higher interest rates and consumer internet stocks have not been spared, with share price down on average 21.8% over the last month. Airbnb is down 12.1% during the same time, and is heading into the earnings with analyst price target of $196.9, compared to share price of $155.45.

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.