Airbnb stock soars 9% on earnings and revenue beat, strong guidance for third quarter
Airbnb said it's seeing strong demand "across all regions", contributing to the company's better-than-expected forecast.
Airbnb's second-quarter earnings exceeded expectations, prompting a 9% increase in the company's stock following extended trading on Thursday. The company's revenue grew by 17% to $3.1 billion, compared to the previous year, and net income rose to $816 million, up from $642 million a year ago, representing $1.03 per share. Airbnb anticipates revenues between $4.69 billion and $4.77 billion for the current quarter, surpassing LSEG's consensus estimate of $4.61 billion.
Year-over-year revenue is projected to increase by approximately 14%, based on the midpoint of the forecast range. Within the U.S. and Canada region, and in Europe and the Middle East, Airbnb's bookings growth is in the high single digits. Asia Pacific and Latin America regions show stronger growth, with high teens and about 20% respectively.
Airbnb attributes particular success in Brazil and Mexico, emphasizing the expansion strategy's effectiveness in Latin America. The company's free cash flow surged by 30% to $1.25 billion, compared to $962 million the year before.
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