Airbnb (NASDAQ:ABNB) Posts Better-Than-Expected Sales In Q4
Stock Story
Published Feb 13, 2024 04:54PM ET
Updated Feb 13, 2024 05:30PM ET
Airbnb (NASDAQ:ABNB) Posts Better-Than-Expected Sales In Q4
Online accommodations platform Airbnb (NASDAQ:ABNB) reported Q4 FY2023 results topping analysts' expectations, with revenue up 16.6% year on year to $2.22 billion. It made a GAAP loss of $0.55 per share, down from its profit of $0.47 per share in the same quarter last year.
Is now the time to buy Airbnb? Find out by reading the original article on StockStory.
Airbnb (ABNB) Q4 FY2023 Highlights:
- Revenue: $2.22 billion vs analyst estimates of $2.16 billion (2.5% beat)
- Adjusted EBITDA: $738 million vs analyst estimates of $646 million (14.2% beat)
- EPS: -$0.55 vs analyst estimates of $0.55 (-$1.10 miss due to a one-time "lodging tax reserves and reserves for host withholding taxes" charge)
- Free Cash Flow of $46 million, down 96.5% from the previous quarter
- Gross Margin (GAAP): 82.7%, up from 81.9% in the same quarter last year
- Nights and Experiences Booked: 98.8 million, up 10.6 million year on year (0.7% beat vs. expectations of 98.1 million)
- Market Capitalization: $98.57 billion
Online MarketplaceMarketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
Sales GrowthAirbnb's revenue growth over the last three years has been exceptional, averaging 58.6% annually. This quarter, Airbnb beat analysts' estimates and reported 16.6% year-on-year revenue growth.
Usage Growth As an online marketplace, Airbnb generates revenue growth by increasing both the number of bookings on its platform and the average order size in dollars.
Over the last two years, Airbnb's nights booked, a key performance metric for the company, grew 23% annually to 98.8 million. This is strong growth for a consumer internet company.
In Q4, Airbnb added 10.6 million nights booked, translating into 12% year-on-year growth.
Get The News You Want
Revenue Per BookingAverage revenue per booking (ARPB) is a critical metric to track for consumer internet businesses like Airbnb because it measures how much the company earns in transaction fees from each booking. Furthermore, ARPB gives us unique insights as it's a function of a user's average order size and Airbnb's take rate, or "cut", on each order.
Airbnb's ARPB growth has been decent over the last two years, averaging 7%. The company's ability to increase prices while constantly growing its nights booked demonstrates the value of its platform. This quarter, ARPB grew 4.1% year on year to $22.45 per booking.
Key Takeaways from Airbnb's Q4 Results It was great to see Airbnb beat analysts' revenue expectations this quarter on better-than-expected 'Nights & Experiences Booked' (a key volume metric). On the other hand, its revenue growth slowed. Additionally, the company guided to adjusted EBITDA margins of "at least 35%" due to investments in "incremental growth opportunities", below expectations of a margin slightly over 36%. Zooming out, we think this was a decent, albeit mixed, quarter. The guidance may be weighing on shares. Investors were likely expecting more, and the stock is down 4.1% after reporting, trading at $144.68 per share.
Written By: Stock Story
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.