The San Francisco-based vacation rental app said its net income rose to $264million in the first quarter from $117million a year earlier, on revenue that rose 18% to $2.14billion
Airbnb’s profit more than doubled last quarter, but management’s disappointing revenue forecast sparked a roughly 7% drop in its stock in after-market trading.
The San Francisco-based holiday rental app saw its profits soar to $264million in the first quarter, up from $11million the previous year, with revenues increasing by 18% to $2.14 billion. Earnings per share for the quarter also leapt to 41 cents, surpassing analysts’ expectations of 23 cents.
The growth in earnings was partly attributed to the shift in the Easter holiday, a significant travel period, which fell in the first quarter this year as opposed to the second quarter in 2023. The quarter also benefited from the additional business day provided by the Feb. 29 “leap day,”
However, Airbnb’s projected revenue for the second quarter, estimated between $2.68billion and $2.74billion, fell short of Wall Street’s expectations. This was partly due to unfavourable exchange rates and the earlier occurrence of Easter.
Airbnb was founded in 2007 when two hosts welcomed three guests to their San Francisco home, and has since grown to over 5 million hosts who have welcomed over 1.5 billion guest arrivals in almost every country across the globe.
