Airbnb beats forecasts with 70% revenue growth as travel recovers

Airbnb reported better-than-expected results on Tuesday and issued upbeat guidance for the second quarter as the company expects travel to recover after the pandemic.

The company said that revenue rose 70% year-on-year in the first quarter despite fears of the pandemic, "macroeconomic winds," and war in Ukraine. As a result, Airbnb's net loss shrank to $19 million from $1.2 billion in the last year's quarter. Continued strong growth is expected for the current quarter. According to Airbnb, revenue will range from $2.03 billion to $2.13 billion, beating the median analyst estimate of $1.96 billion. The lower end of the scope would correspond to 52% growth.

However, the company said booking risks include "additional Covid outbreaks, impact on travel from the conflict in Ukraine and consumer price sensitivity."

Airbnb reported 102.1 million booked room nights and experiences in the first quarter, exceeding pre-pandemic levels. Analysts expect the number to reach 100.87 million, according to StreetAccount.

Travelers are also becoming more confident about booking trips in advance. By the last of April, the company had booked 30% more nights for the summer travel season than the same time in 2019.

The gross value of reservations, which Airbnb uses to track host revenue, service fees, cleaning fees, and taxes, totaled $17.2 billion in the first quarter, beating Wall Street's estimate of $16.54 billion for StreetAccount. That's 67% more every year.

Average daily rates increased 5% year-on-year to $168 during the quarter. The company expects ADR to remain stable on an annual basis in the second quarter.

"Stable ADR in the second quarter of 2022 suggests that the growth of nights booked and experience in the second quarter will be a good indicator of GBV growth in the second quarter, as on an annual basis," the company said.

Airbnb is capitalizing on the changes in the way people work and travel caused by the Covid-19 pandemic. Employees are no longer fastened to their desks, and remote choice is becoming the norm, with many worker policies still in effect everywhere today.

Airbnb said last week it would allow its employees to work from anywhere in the United States. As of September, employees in more than 170 countries can live and work anywhere for up to 90 days a year.