Proactive Investors - Airbnb (NASDAQ:ABNB) Inc (NASDAQ:ABNB, ETR:6Z1) shares were trading down 9.3% pre-market on Thursday after disappointing second-quarter guidance overshadowed a strong first-quarter report.
For Q2, the alternative accommodation provider projected revenue in the range of $2.68 billion to $2.74 billion, below the $2.76 billion expected by Wall Street analysts.
The company sees sequential headwinds stemming from the timing of the Easter holiday, which fell in Q1 instead of Q2 this year, the inclusion of Leap Day in the first quarter, and the impact of FX rate changes.
It sees revenue growth accelerating in Q3 compared to Q2 on robust summer travel demand around key events such as the Paris Olympics and the Euro 2024 soccer tournament in Germany.
Adjusted EBITDA is expected to be flat on a nominal basis but down on an adjusted EBITDA margin basis relative to the year-ago quarter, attributed to the timing of Easter, a one-time payment impacting Q2 2023, and higher marketing expenses.
Airbnb’s weak guidance drew focus away from better-than-expected Q1 earnings.
Revenue for the first quarter increased 18% year-over-year to $2.14 billion ahead of estimates of $2.07 billion.
The increase was attributed to solid growth in Nights and Experiences booked, a modest increase in average daily rate, and the shift in the timing of Easter.
Earnings per share increased from $0.18 in the year-ago quarter to $0.41, ahead of estimates of $0.23.
Gross booking value was up 12% year-over-year to $22.9 billion and Nights and Experiences Booked was up 9.5% to $132.6 million.
“We had our best Q1 ever, with 133 million nights and experiences booked, along with double-digit supply growth across all regions,” Airbnb CEO Brian Chesky said in a statement. “I’m proud of our strong Q1 results and look forward to another record summer travel season.”
Shares of Airbnb traded down 7% at $147 shortly after the release of its earnings report and fell to $143.14 in pre-market trading.
Analysts at Wedbush said the Q2 guidance miss was only slight, but "implies slower-than-expected room night growth and slight margin compression".