Consumer Discretionary

Airbnb, Inc. (NASDAQ:ABNB) Goldman Sachs Communacopia + Technology Conference September 9, 2024 7:25 PM ET Company Participants Ellie Mertz – Chief Financial Officer Conference Call Participants Unidentified Analyst All right, I guess in the interest of time, we’re going to get started since the mics have started to work. So I know people are still trickling in, but we will get started in the interest of time. It’s my pleasure to have Airbnb back at the conference this year, and Ellie Mertz, Chief Financial Officer. Ellie, thanks for being part of the conference, and welcome. Ellie Mertz Yeah, thank you for having me, and apologies on the line-up change. We decided we wanted to talk about travel trends instead of founder mode, so I’m here. Question-and-Answer Session Q – Unidentified Analyst As I said, I’d let you say whatever you want about that. Founder mode is all the rage. But

Airbnb said revenue rose in the second quarter as a result of holidays and events like the Olympics, but warned about a potential slowdown in demand among U.S. consumers in the current quarter. The San Francisco-based short-term rental company on Tuesday posted a net income of $555 million, or 86 cents a share, compared with $650 million, or 98 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast earnings per share of 91 cents. Revenue rose 11% to $2.75 billion, beating the $2.74 billion expected by analysts. Airbnb had most recently said it expected revenue of $2.68 billion to $2.74 billion, representing growth of 8% to 10%. Gross booking value was up 11%, driven by a 9% increase in nights and experiences booked and a 2% rise in average rates. Wall Street analysts were also expecting growth of 11% in gross bookings. Airbnb

Airbnb’s 3Q outlook suggests booked nights growth lower than 2Q as travel demand in the US looks weak, according to BofA Securities in a research note. The analysts say that they’ve been cautious on a fading reopening benefit, as tough comparisons along with slowing long-term stays growth impacts bookings growth. They add that the home-sharing company also noted that shortening booking windows are impacting its 3Q outlook, leaving open a possibility of improving trends if US consumers end up booking late and maintaining relatively stable trip growth in September. Shares dive 15% to $111.57 in early trading, putting it on pace for its largest percentage decrease on record.

Airbnb’s (ABNB) Q2 earnings performance was “tough” due to slower demand and increased marketing expenses, RBC Capital Markets said in a note Wednesday. “We believe the company is facing a textbook multiple compression situation driven by higher marketing spend into slowing demand,” RBC said in the note. Airbnb on Tuesday posted Q2 earnings of $0.86 per share on revenue of $2.75 billion. Analysts polled by Capital IQ expected EPS of $0.91 on revenue of $2.74 billion. Management’s focus on “product cycle opportunities as a way to reignite growth was constructive” and a significant opportunity could exist, RBC said. However, the “marketing to counter deceleration” tactic led to a lowering of estimates, the brokerage said. RBC cut its price target on Airbnb’s stock to $120 from $150 and maintained sector perform rating. Airbnb shares were down by nearly 13% in recent trading.