Online accommodations platform Airbnb (NASDAQ:ABNB) will be announcing earnings results this Thursday after market hours. Here’s what investors should know.
Airbnb met analysts’ revenue expectations last quarter, reporting revenues of $4.10 billion, up 9.7% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ number of nights and experiences booked estimates. It reported 133.6 million nights booked, up 8.8% year on year.
Is Airbnb a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Airbnb’s revenue to grow 9.5% year on year to $2.72 billion, slowing from the 11.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.65 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Airbnb has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.6% on average.
Looking at Airbnb’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Electronic Arts delivered year-on-year revenue growth of 61.8%, beating analysts’ expectations by 29.4%, and Reddit reported revenues up 69.7%, topping estimates by 8.7%. Electronic Arts traded down 2.3% following the results while Reddit was also down 7.4%.
Read our full analysis of Electronic Arts’s results here and Reddit’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. Unfortunately, consumer internet stocks have struggled in this environment as share prices are down 17.3% on average over the last month. Airbnb is down 13.1% during the same time and is heading into earnings with an average analyst price target of $143.75 (compared to the current share price of $120.37).
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