Shares of Airbnb (NASDAQ:ABNB) surged in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2022. Earnings per share came in at $0.48, which beat analysts’ consensus estimate of $0.26 per share. Sales increased by 24.2% year-over-year, with revenue hitting $1.9 billion. This beat analysts’ expectations of $1.86 billion.
Airbnb saw its bookings for nights and experiences jump 20% year-over-year to ultimately reach 88.2 million. That represented a gross booking value of $13.5 billion, which was also up 20% over the same time the preceding year. Better yet, the average daily rate figure was down 1%, dropping to $153. Lower rates coupled with healthy travel demand meant a good environment for Airbnb overall.
Looking forward, management now expects revenue for Q1 2023 to be in the range of $1.75 billion to $1.82 billion. For reference, analysts were expecting $1.69 billion in revenue. Management also looks for slightly higher spending in sales and marketing for the first quarter but will restrain itself to flat spending for the full year.
Overall, Wall Street has a consensus price target of $117.93 on Airbnb stock, implying 2.42% downside risk, as indicated by the graphic above.
