Airbnb (ABNB) stock is up 15% after the homestay and rental company reported better-than-expected financial results for the fourth quarter of 2024.
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The San Francisco-based company announced earnings per share (EPS) of $0.73, which was well ahead of the $0.58 forecast on Wall Street. Revenue in the October through December quarter totaled $2.48 billion, which topped the analyst consensus estimate of $2.43 billion. Sales were up 12% from a year earlier.
The company also reported net income of $461 million, representing a 19% margin. That compares to a net loss of $349 million in the final quarter of 2023. Airbnb disclosed free cash flow of $4.5 billion. The company continues to buyback its own stock, purchasing $838 million of stock in Q4 and $3.4 billion for all of last year.
Look Ahead
Management at Airbnb attributed the strong results to a continued recovery in the global travel industry coming out of the doldrums of the Covid-19 pandemic. In Q4 2024, the company reported 111 million nights and experiences booked, up 12% from a year ago. Gross booking value, which Airbnb uses to report host earnings, totaled $17.6 billion in the quarter, above expectations of $17.2 billion.
In terms of forward guidance, Airbnb said it expects to report revenue of $2.23 billion to $2.27 billion in the current first quarter of 2025. Analysts had $2.3 billion penciled in for the company. Airbnb also promised to launch new offerings this year to further entice guests, though it didn’t provide any specifics.
ABNB stock has declined 5% over the last 12 months.
Is ABNB Stock a Buy?
The stock of Airbnb has a consensus Hold rating among 18 Wall Street analysts. That rating is based on four Buy, 10 Hold, and four Sell recommendations issued in the last three months. The average ABNB price target of $137.69 implies 2.38% downside from current levels. These ratings could change after the company’s latest print.
