Feb 14 (Reuters) – Airbnb Inc (ABNB.O) on Tuesday forecast current-quarter income above market estimates on resilient journey demand and mentioned it will maintain a good lid on prices to guard margins, sending its shares 10% increased in prolonged buying and selling.
The rental agency mentioned it expects to take care of final yr’s margin of 35%, the very best because it went public in 2020, regardless of recession fears which have sparked issues about client spending.
It mentioned home and short-distance journey continued to be sturdy, boosting occupancy charges at fashionable city locations, and famous enchancment in long-distance and cross-border journey through the reported quarter, helped by a stronger greenback and border reopening.
“We’re significantly inspired by European friends reserving their summer season journey earlier this yr,” Airbnb mentioned.
The corporate forecast first-quarter income between $1.75 billion and $1.82 billion, increased than analysts’ common expectation of $1.69 billion, as per Refinitiv knowledge.
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It additionally forecast that common charges for its leases would fall barely within the present quarter and stay pressured via 2023, as vacationers return to lower-cost city leases.
Income within the vacation quarter ended December rose 24% to $1.90 billion, decrease than the previous two quarters, however beat analysts’ common estimate of $1.86 billion.
In the meantime, common each day charges fell 1% to $153 and bookings rose 20% to $13.5 billion, beneath analysts’ common expectation of $13.69 billion.
Airbnb reported a quarterly internet revenue of $319 million, or 48 cents per share, above estimates of 25 cents per share, based on Refinitiv knowledge.
Reporting by Aishwarya Nair in Bengaluru; Modifying by Shinjini Ganguli
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