Airbnb's revenue increased by 78 percent in the fourth quarter, beating analyst estimates.
After the market closed on Tuesday, Airbnb (ABNB) released its fourth-quarter earnings, exceeding analysts' estimates on both the top and bottom lines, with revenue up 78 percent year over year.
Despite the spread of the Omicron variety during the 2021 holiday season, which caused residents in certain regions of the planet to flee back into their homes, the report was good.
The following are the most noteworthy figures from the report in comparison to what Wall Street expected from Airbnb.
Revenue: $1.53 billion versus $1.46 billion expected
Adj. earnings per share: $0.08 versus $0.03 expected
Gross bookings: $11.3 billion versus $11.09 billion expected
Following the announcement, Airbnb's stock jumped 6%.
At the height of the epidemic, Airbnb, which went public in December 2020, experienced a severe damage to its top and bottom lines, with reservations value plunging 31% from Q4 2019 to Q4 2020.
Despite this, the company's initial projections at the outset of the pandemic predicted that sales in 2020 would be less than half of what it was in 2019, yet it only decreased by 30% in the end. This is most likely due to customers seeking ways to get out of their houses while also being able to get away and socially isolate themselves.
In Q4 2021, Airbnb's bookings not only surpassed those of Q4 2020, but also those of Q4 2019, prior to the pandemic. Bookings for the quarter were up 91 percent year over year and 32 percent above Q4 2019 figures, according to the company's figures.
Despite the proliferation of the Omicron variant, reservations on Airbnb's Nights and Experiences were only down 3% from Q4 2019. If you exclude the Asia Pacific area, which has stronger border controls and requires more cross-border travel, bookings were up 8%.
Airbnb expects revenue of $1.41 billion to $1.48 billion in the first quarter of 2022. On the low end, that's a 69 percent increase, and on the high end, it's a 76 percent increase.
Nonetheless, as of noon Eastern Time on Tuesday, Airbnb's stock price had fallen 16 percent in the last year, to $172.92. In the meantime, Booking Holdings (BKNG), the parent firm of Bookings.com, Priceline, and Kayak, was up 18% to $2,639 per share.