Airbnb (ABNB) delivered a stronger-than-anticipated profit for the fourth quarter, surpassing Wall Street expectations and driving a notable surge in its stock price during after-hours trading on Thursday.
The company reported a 12% year-over-year increase in revenue, reaching $2.5 billion, exceeding analyst forecasts tracked by Visible Alpha. Airbnb’s net income for the quarter came in at $461 million, or 73 cents per share, a significant turnaround from a loss of $349 million, or 55 cents per share, in the same period last year. This marked a substantial beat against analyst expectations.
The positive results were driven by a 12% increase in bookings, which totaled 111 million, reflecting growth across multiple regions. Additionally, Airbnb’s gross booking value rose 13% to $17.6 billion, both metrics exceeding analysts’ projections.
Looking forward, Airbnb provided a cautious outlook for the first quarter, forecasting revenue between $2.23 billion and $2.27 billion. This range falls slightly short of analysts’ expectation of $2.3 billion, with the company citing potential foreign exchange headwinds as a factor that could impact revenue growth.
Following the earnings announcement, Airbnb’s stock surged by over 14% in extended trading. Despite the strong performance, the company’s stock has fallen approximately 10% over the past year through Thursday’s market close.
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