MW Airbnb expects slower growth in nights booked, amid 'broader economic uncertainties' in U.S.

By Bill Peters

'In the U.S., we've seen relatively softer results, which we believe has been largely driven by broader economic uncertainties,' the company says

Airbnb Inc. said it expects growth in a key demand gauge to ease in the second quarter following what the vacation-rental platform said were "broader economic uncertainties" in the U.S., but it stuck with its outlook for an adjusted form of profit margin for this year.

The company issued the forecast Thursday as higher prices and the U.S.-led trade war cause deeper anxieties among consumers and businesses, and as less-wealthy travelers hold off on making plans.

Airbnb $(ABNB)$ said it expects year-over-year growth in nights and experiences booked to "moderate" in the second quarter, when compared to the first quarter.

"During April, we saw strong demand for Easter travel from Latin America - which remains our fastest-growing region," management said in its letter to shareholders. "Whereas in the U.S., we've seen relatively softer results, which we believe has been largely driven by broader economic uncertainties."

However, they said they believed the company "can adapt to periodsof consumer uncertainty."

Airbnb said it expects second-quarter revenue of $2.99 billion to $3.05 billion. That compared with FactSet forecasts for $3.03 billion.

The company said it expects adjusted Ebitda - or earnings before interest, taxes, depreciation and amortization - to be up year over year during the second quarter. But it expects margins based on those profit standards to be "flat to down slightly" year over year, as it spends more on marketing ahead of a summer-season product rollout and invests in expansion.

Airbnb plans to invest $200 million to $250 million into "launching and scaling new businesses in 2025." The company will announce more details on those plans on May 13. It said it expects to have a full-year adjusted Ebitda margins at least 34.5%, in keeping with prior forecasts.

For the first quarter, Airbnb reported revenue of $2.27 billion, with earnings per share of 24 cents.

Analysts polled by FactSet expected Airbnb to earn 24 cents, on $2.26 billion in sales.

"Our results show that no matter what's happening in the world, people continue to choose Airbnb," the company said in the letter. "That's because our model is inherently adaptable. We've proven this time and time again, from our founding during the Great Recession to going public in the middle of the pandemic."

Shares were down 4% after hours on Thursday.

Elsewhere in the travel industry, signals have been mixed, as anxieties over tariffs ripple through the economy. Delta Air Lines Inc. $(DAL)$ said growth had "largely stalled." United Airlines Holdings Inc. $(UAL)$ offered two outlooks, saying conditions were "impossible to predict."

However, Booking Holdings Inc. (BKNG), which runs travel-service platforms like Booking.com and Kayak, said on Tuesday that "we are currently seeing stable levels of global leisure travel demand despite rising geopolitical and macroeconomic concerns."

In February, when Airbnb last reported quarterly earnings, Chief Executive Brian Chesky also said he hoped to make Airbnb into a single place to go for multiple travel-related needs, rather than simply finding a place to stay. The company has also tried to make its booking platform easier to use and offer more precise recommendations.

-Bill Peters

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 01, 2025 16:13 ET (20:13 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.