Airbnb reported a net income of $379 million and a $2.1 billion revenue in what has become its most profitable second quarter in history. The customer-to-customer home rental company is one of the biggest beneficiaries of the post-lockdown era.
On July 4, it also had a new single-day record revenue; the entire quarter had more than 103 million nights and experiences booking, a new quarterly record as well.
However, CNBC reports that its stock still dropped by 9%, despite posting strong results that should have typically encouraged investors. Likely, its fortune will change after this last shares slump when the market reopens on Wednesday.
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The company even beat its Wall Street estimates for earnings and revenue, which increased by 58% when compared to its previous year’s numbers. As it stands, Airbnb’s Q1 2020 revenue is still the highest quarterly growth it has seen in its existence, after making 70% more than its 2019 quarter.
However, it was not all smooth sailing during Q2 2022 for the company. It also suffered from flight cancellations like others in its industry.
“We did see some elevated cancellations in the back of the quarter relative to our forecast,” Airbnb CFO Dave Stephenson said. “We believe that some of the elevated cancellations were related to flight cancellations around the world, but it was mostly in North America towards the end of Q2 2022.”
To match the changing behaviour of customers, the company effected cost-cutting measures that reduced spending. It also streamlined activities to make it more focused and able to adapt quickly.
Airbnb says its third-quarter earnings will also shatter records and has estimated it to be about $2.78 billion to $2.88 billion in revenue. If there is a time to buy the company’s stocks, it is now.
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