Airbnb Profits Explode In Q3 After Recovery From COVID-19

 Airbnb Profits Explode In Q3 After Recovery From COVID-19

Airbnb Profits Explode In Q3 After Recovery From COVID-19.

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As vaccination efforts ramp up worldwide, Airbnb posts strong profits and beats revenue estimates for the third quarter as the company continues to recover from Covid-19.

As of the end of the third quarter, the company had booked 79.7 million nights and experiences, which represents a slight decrease in comparison to the second quarter. Despite Covid-19 battering the travel industry, this was still up 29% year over year.

According to StreetAccount, analysts have estimated 80.8 million nights and experiences for the quarter.

Even though domestic and cross-border travel haven’t returned to pre-pandemic levels, the company saw its highest revenue and net income ever in the third quarter, CFO Dave Stephenson said on a call with analysts. The revenue was $2.24 billion, an increase of 67% over the previous year.

Year-over-year, net income jumped 280% to $834 million.

According to analysts, Airbnb expects revenue in the fourth quarter to range between $1.39 billion and $1.48 billion.

According to Airbnb’s third-quarter letter to shareholders, the company’s recovery trends continue to vary regionally, as well as by vaccination rates and travel restrictions. Nevertheless, Airbnb said it is “uniquely positioned for the travel revolution.” In North America alone, nights and experiences booked were up 10% from the same period last year.

Airbnb had previously stated that it expected the Covid delta variant to influence travel behavior in its second-quarter letter to shareholders. As a result of the variant, year-over-year comparisons for nights and experiences booked and gross booking value were also expected to become non-linear, unstable, and volatile.

In the third quarter, the company recorded $11.89 billion in gross bookings, which tracks host earnings, service fees, cleaning fees, and taxes. Those numbers were up about 48% from last year, but slightly below a StreetAccount forecast of $12.31 billion.

For the company, average daily rates fell to $149 from $161 last quarter. That’s a 15% increase over the same period last year.

The company expects travel demand to remain strong through 2022, as well as a strong fourth quarter. For the fourth quarter, it expects to book “significantly more nights and experiences” than the same period last year.

“Looking to 2022, vaccination progress and the recovery of international travel in Q4 2021 will be key themes for growth heading into the new year,” the company wrote.

Olumide Adesina

Olumide Adesina a France-born Nigerian, a Certified Investment Trader, with more than a decade of working expertise in Investment and Trading. He is also a reputable author and writer for CoinDesk and FxEmpire.

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