Feb 13 (Reuters) - Vacation home rentals company Airbnb ABNB.O posted higher quarterly revenue on Thursday as international travel demand remained strong, although it forecast slower growth for the first quarter due to tough year-over-year comparisons and a stronger dollar.
The travel company said it was benefiting from continued growth in Latin America and sustained cross-border travel demand in Asia Pacific and Europe, the Middle East and Africa.
Airbnb forecast first-quarter revenue of $2.23 billion to $2.27 billion, a 4% to 6% increase, compared with a year earlier. The company said revenue growth benefited during the same period in 2024 from the timing of Easter and the inclusion of Leap Day.
A strong U.S. currency is making it more expensive for multinational companies like Airbnb to convert profits booked abroad into dollars. In January, the U.S. dollar index .DXY reached a two-year high.
The average daily rate, or the cost per night, is expected to decline slightly year-over-year in the first quarter due to exchange rates.
Excluding the impact of the calendar and foreign exchange rate, Airbnb anticipates revenue to increase in the range of 10% to 12% from a year earlier.
The company expects Nights and Experiences Booked in the first quarter to be flat, compared with the same period a year earlier, when excluding Leap Day. About 133 million nights and experiences were booked in the first quarter of 2024.
The San Francisco-based company said it was benefiting from the launch of its co-host network four months ago which allows a manager to take care of guests and the property on behalf of the owner. It said that co-host listings earn about twice as much as other Airbnb listings in comparable countries.
Airbnb also said that it plans to invest $200 million to $250 million towards launching and scaling new businesses during the year.
Revenue rose 11.8% to $2.48 billion for the fourth quarter ended December 31.
(Reporting by Aishwarya Jain in Bengaluru and Doyinsola Oladipo in New York; Editing by Anil D'Silva)
((Aishwarya.Jain@thomsonreuters.com;))