In This Article:
Key Points
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Airbnb beat sales projections and matched earnings expectations despite facing compensation expense and calendar shift headwinds.
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Airbnb projects revenue growth of 9% to 11% in Q2 but warns that growth in nights and experiences booked could be flat to down slightly.
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Airbnb plans a May 13 event at which it expects to talk about its expansion plans beyond providing accommodations.
Here's our initial take on Airbnb's (NASDAQ: ABNB) fiscal 2025 first-quarter financial report.
Key Metrics
| Metric | Q1 2024 | Q1 2025 | Change | vs. Expectations |
|---|---|---|---|---|
| Total revenue | $2.14 billion | $2.27 billion | +6% | Beat |
| Adjusted earnings per share (EPS) | $0.41 | $0.24 | -41% | Met |
| Nights/experiences booked | 132.6 million | 143.1 million | +8% | n/a |
| Gross booking value | $22.9 billion | $24.5 billion | +7% | n/a |
Travel Anxiety?
Airbnb was quite happy with the way it started its 2025 year. Despite the challenges the travel industry faced early in the year, Airbnb's business didn't seem to suffer, as guests spent $24.5 billion on the platform. High-single-digit percentage gains in key metrics like revenue and nights and experiences booked were in line with what analysts anticipated. Even though earnings were sharply lower from year-earlier levels primarily due to stock-based compensation expenses, adjusted EBITDA eased lower by just 2%.
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In describing travel trends, Airbnb management said that traveler behavior was largely consistent with the previous year's first quarter. Demand in North America remained robust despite macroeconomic uncertainty, and the company said that most U.S. nights booked were by domestic travelers. Airbnb almost pointed out that although fewer Canadians traveled to the U.S. during the quarter, they still booked Airbnb listings in alternative destinations like Mexico. Meanwhile, growth was stronger in Latin America and the Asia-Pacific region.
Yet Airbnb's second-quarter outlook still included some potential impacts from global economic volatility. Revenue projections of $2.99 billion to $3.05 billion were a bit below expectations, and Airbnb believes that nights booked are likely to grow more slowly, with flat average daily rates for accommodations. Adjusted EBITDA should produce some growth, but likely with weaker margins as marketing expenses pick up.
Immediate Market Reaction
Airbnb shareholders weren't entirely comfortable with the sluggish guidance for the current quarter. Shares were down between 3% and 4% in after-hours trading 30 minutes after the financial report came out. Some investors might also have hoped for less of a hit to earnings than the company suffered.