Airbnb Reports Record-breaking Bookings and Revenue

Airbnb beat Wall Street estimates for earnings and posted revenue that met expectations for the second quarter. Revenue jumped 58% year-over-year to $2.1 billion helping to drive the company’s most profitable second quarter to date. Airbnb reported net income of $379 million, up from a loss of $68 million in the year-ago quarter. The company also announced a $2 billion share buyback program.

Airbnb, like Uber, benefited from an increase in consumer spending on activities as opposed to goods. For the second quarter, Airbnb reported more than 103 million nights and experiences booked, which is the company’s largest quarterly number ever.  Additionally, the company said it tightened spending at the height of the pandemic, which helped make it leaner and more focused, and that it’s adapted its business as travel continues to change. 

It's interesting to note that, while many companies are calling employees back to the office, long-term stays, where guests stay in a home for 28 days or more, remained Airbnb’s fastest-growing segment, with 25% growth over the year-ago quarter. Average daily rates rose 40% when compared to pre-pandemic levels in 2019, reaching $164. This is an increase 7% from the same quarter a year ago.

The company anticipates record revenue during the third quarter despite headwinds from foreign exchange fluctuations, specifically the weakening euro versus the dollar. It guided third quarter revenue to land between $2.78 billion and $2.88 billion, ahead of StreetAccount’s $2.77 billion estimate. The company said it broke a single-day revenue record on July 4, which it says signals a strong summer season ahead.

The key lessons learned for other businesses is that doing the right thing during uptimes, positions the company to reap the reward during downtimes.