Online accommodations platform Airbnb (NASDAQ:ABNB) will be announcing earnings results tomorrow afternoon. Here’s what to expect.
Airbnb met analysts’ revenue expectations last quarter, reporting revenues of $3.73 billion, up 9.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations. It reported 122.8 million nights booked, up 8.5% year on year.
Is Airbnb a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Airbnb’s revenue to grow 9.1% year on year to $2.42 billion, slowing from the 16.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Airbnb has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Airbnb’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Expedia delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 3.5%, and Alphabet reported revenues up 11.8%, in line with consensus estimates. Expedia traded up 17.2% following the results while Alphabet was down 7.2%.
Read our full analysis of Expedia’s results here and Alphabet’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 9.8% on average over the last month. Airbnb is up 5.4% during the same time and is heading into earnings with an average analyst price target of $136.15 (compared to the current share price of $134.44).
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