Airbnb Reports Record Q3 Revenue; Shares Up 12%

Shares of Airbnb (ABNB) are up almost 12% in Friday’s trading session, after the company reported its strongest ever Q3 results, driven by a rebound in travel activities.

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The company is an online marketplace, connecting hosts and guests online or through mobile devices, to book travel services and accommodation facilities.

The company reported earnings of $1.22 per share, exceeding Street’s expectations of $0.75 per share. Similarly, the company earned revenue of $2.2 billion in Q3, growing 70% year-over-year, surpassing the consensus estimate of $2.04 billion.

Notably, net income grew 280% year-over-year to $834 million, driven by robust revenue growth, continued expense discipline, and peak summer travel.

Q3 also marked a significant growth of 48% year-over-year in Gross Booking Volumes (GBV) to $11.9 billion, while Nights & Experiences Booked grew 29% year-over-year to 79.7 million.

Guidance

Airbnb expects Q4 Nights and Experiences Booked as well as GBV to reflect significant year-over-year growth, with support from new traveling trends encouraged by work-from-home flexibility, coupled with lifting of travel restrictions, and global vaccination progress.

The average daily rates are anticipated to remain stable.

Revenue is expected to be in the range of $1.39 billion to $1.48 billion, and adjusted EBITDA might continue to increase.

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Analyst’s Take

JMP Securities analyst, Andrew Boone maintained a Buy rating on Airbnb at a price target of $205 (2.9% upside potential from current levels).

Overall, the Street has a cautious outlook on the stock, with a Moderate Buy consensus rating based on 16 Buys, 10 Holds, and one Sell. The average Airbnb price target of $188.67 implies 5.3% downside potential.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Airbnb’s performance.

According to the tool, the number of total unique visitors for September 2021 on all devices comes in at 70.1 million, up 1.9% year-over-year. On a year-to-date basis, the number of total unique visitors to Airbnb’s website jumped 11.2%, from January 2021 to September 2021.