Airbnb, Inc. ($ABNB) Earnings (Q3 FY22)

 Airbnb, Inc. ($ABNB) Earnings and Opinion:


Airbnb is a company in the Consumer Cyclical sector and operates in the Travel Services industry. The company operates as a platform that enables hosts to offer stays and experiences to guests worldwide. Airbnb was founded in 2007 and is currently headquartered in San Francisco, California. The company made its debut on the stock market in 2020. 

Airbnb Earnings Results: 

  • Revenue of $2.88B beating expectations of $2.83B
  • Adj Operating Income of $1.33B beating expectations of $1.19B
  • Adj EBITDA of $1.46B beating expectations of $1.39B
  • Adj Net Income of $1.21B beating expectations of $1.04B
  • Adj Diluted EPS of $1.79 beating expectations of $1.53
Opinion:
Airbnb is down about 7% in the after-hours market. The company reported earnings after the market closed this afternoon. The earnings report was very solid, but it was the outlook that is throwing the stock through a loop. The bookings in Q4 are showing a disappointing number, which could be because consumers are favoring the urban and other destinations. The key word for this report was "moderate". The company sees the dollar having a strong affect on its earnings and also a shift in people going back to the cities. This is a bit disappointing, given the fact that the company reported a really solid quarter in the summer. The one thing that is hurting the company is the rising costs. Consumers do not have as much extra cash laying around to spend on a nice rental or vacation. The valuation is pretty high, however the company is focusing on growth. It will be interesting to see how the holiday season impacts the company. If we could get some sort of surprise in the holiday season, investors will be pleased. In my opinion, Airbnb is a risky investment, but it is one I am invested in. I love the business model and it has become pretty popular. It saves a lot of headache, not only for the traveler, but also the renter. The renter can list their houses on the site and get some advertising. I was very excited with the summer results, and hoped it would carry momentum. However, the FX headwinds are going to snag Airbnb. It will be a tough couple of months for the investor, but it could be good to scoop up some shares at a lower valuation. I am still firm in Airbnb and like the growth trend they have. I am long Airbnb $ABNB.


*Information from Bloomberg and Yahoo Finance

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