What To Expect From Airbnb’s (ABNB) Q1 Earnings

StockStory
04-30
What To Expect From Airbnb’s (ABNB) Q1 Earnings

Online accommodations platform Airbnb (NASDAQ:ABNB) will be reporting earnings tomorrow after market close. Here’s what you need to know.

Airbnb beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $2.48 billion, up 11.8% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ number of nights and experiences booked estimates. It reported 111 million nights booked, up 12.3% year on year.

Is Airbnb a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Airbnb’s revenue to grow 5.4% year on year to $2.26 billion, slowing from the 17.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Airbnb has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.

Looking at Airbnb’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Booking delivered year-on-year revenue growth of 7.9%, beating analysts’ expectations by 3.6%, and Alphabet reported revenues up 12%, topping estimates by 1.2%. Alphabet traded up 1.8% following the results.

Read our full analysis of Booking’s results here and Alphabet’s results here.

Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Airbnb’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $147.15 (compared to the current share price of $122.10).

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