Airbnb (ABNB) they reported solid financial results on Tuesday, meeting analysts’ expectations on revenue and slightly beating them on earnings per share. However, the company lost expectations in the evenings and reserved “experiences”.
Shares fell 8% in after-market trading following the news.
Here’s what Airbnb reported today, compared to Wall Street expectations:
Income: $2.1 billion actual versus $2.1 billion forecast
Adjusted EPS: Actual $0.56 vs $0.51 expected
Nights and experiences booked: 103.7 million reals against the expected 106.1 million
While the metric for nights and experiences booked was a loss, the number continues to rise from 102.1 million in the first quarter of 2022. “Experiences” are activities organized by local experts in a specific location and can be online or face-to-face according to the company’s website.
Airbnb also announced a $2 billion share buyback to express confidence in the future and support the company’s long-term growth, according to a statement.
Shares of Airbnb were down about 35% year-to-date when the market opened this morning.
Airbnb registration at the Mobile World Congress (MWC) in Barcelona, Spain on March 1, 2022. (Photo by Joan Cros/NurPhoto via Getty Images)
Inflation has hit some of the tried and true names in tech, facilitating layoffs and hiring freezes across the industry. However, many tech companies have posted decent financial results this earnings season.
Also, there’s reason to believe that travel-focused names are set to fare better than some of their counterparts. For example, Uber ( UBER ) reported yesterday that it was cash flow positive for the first time, which the company partially attributed to ride volume.
Inflation is rising, but so is travel
The United States has seen inflation reach historic levels and the Fed has taken action, raising rates once again in recent weeks. Democrats have also proposed the Inflation Reduction Act, which could save the average American household $1,800 in energy costs, according to one analysis.
At the same time, traveling is having a moment, albeit a complicated one. After two years of the pandemic, travel agencies are reports who are overwhelmed not only by the number of customers they have contacted, but by how complicated the regulations related to COVID-19 have become. Still, companies like Marriott ( MAR ) beat analysts’ estimates this quarter on how much travel demand has recovered.
The story continues
We’ll see, but if inflation continues to rise, it could affect that travel boom, and Airbnb and its competitors will be at the center of the situation as the tension unfolds.
Allie Garfinkle is a senior technology reporter at Yahoo Finance. Find her on twitter @agarfinks.
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