Airbnb (ABNB) shares plummeted 5.90% in after-hours trading on Wednesday, despite reporting better-than-expected second-quarter results, as investors focused on the company's cautious outlook for the remainder of the year.

The vacation rental platform posted Q2 revenue of $3.1 billion, surpassing analyst estimates of $3.03 billion, and earnings per share of $1.03, beating the expected $0.93. However, Airbnb's forward guidance and comments on future profitability overshadowed these strong results.

For the third quarter, Airbnb forecasted revenue between $4.02 billion and $4.10 billion, in line with Wall Street expectations. However, the company warned that its adjusted EBITDA margins "will be lower than in Q3 2024, primarily due to investments in new growth and policy initiatives." This cautionary note on profitability likely contributed to the stock's decline. Additionally, Airbnb expressed concern about growth rates later in the year, citing tougher year-over-year comparisons. The company stated, "This dynamic will continue into Q4, putting pressure on growth rates later in the year," suggesting that Airbnb's rapid post-pandemic recovery may be moderating.