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IPFS News Link • Travel

Revenge Travel Peaked? Airbnb Pukes On Travel Spending Slowdown Forecast

•, by Tyler Durden

This comes after Bank of America analysts identified other travel companies missing earnings, leaving them with new fears that a consumer travel spending downturn nears. 

Here's how the company reported in the first quarter, compared with consensus expectations from Bloomberg: 

Revenue $2.14 billion, +18% y/y, estimate $2.06 billion

Gross booking value $22.9 billion, +12% y/y, estimate $22.32 billion

 Adjusted Ebitda $424 million, +62% y/y, estimate $326.3 million

Adjusted Ebitda margin 20% vs. 33% q/q, estimate 15.9%

EPS 41c vs. 18c y/y, estimate 30c

Nights and experiences booked 132.6 million, +9.5% y/y, estimate 131.81 million

Gross booking value per nights and experiences booked $172.88, +2.6% y/y, estimate $169.38

Free cash flow $1.91 billion, +21% y/y, estimate $1.07 billion

Despite the revenue beat in the quarter, nights and experiences booked, a key metric in the industry, posted 9.5%, falling short of expectations of a 12% increase. "It also represents the slowest rate of growth since 2020, suggesting that overall demand has normalized after an initial post-pandemic travel boom," Bloomberg said. 

Wall Street analysts were more focused on Airbnb's second-quarter guidance. The company now expects revenue for the quarter ending in June to be between $2.68 billion and $2.74 billion, down from $2.74 billion. 

Sees revenue $2.68 billion to $2.74 billion, estimate $2.74 billion (Bloomberg Consensus)

In a statement, Airbnb noted that the Easter holiday and currency headwinds were some factors in the travel spending slowdown - ahead of the peak travel season in July. 

Wall Street analysts were focused on the "underwhelming" room nights metric and weak quarter-two guidance that overshadowed better-than-expected first-quarter earnings (list courtesy of Bloomberg):

Bloomberg Intelligence analyst Mandeep Singh

"Airbnb's expectations of 8-10% top-line growth for 2Q suggests a further deceleration in room-night growth, with average daily rates likely to remain a slight tailwind"

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