Airbnb Inc ABNB.O has forecast a better-than-expected first-quarter revenue after the short-term home rental company reported strong quarterly results on rising domestic travel and longer stays by guests at higher prices.
While the San Francisco-based company was initially hit by the COVID-19 pandemic, its business rebounded as people took trips closer to home where they stayed for longer to work remotely. The trend has since continued with "non-urban gross nights" booked up approximately 45% in the fourth quarter versus 2019.
Statement By CEO
"There's this entire acceleration in this new category of travel, which is that people are less tethered to an office, so they can now live anywhere," CEO Brian Chesky said during a conference call with analysts.
Average Daily Rates
Strong demand helped push up prices charged by hosts, with average daily rates during the fourth quarter up 20% at $154. The company expects the higher rates to bolster first-quarter results.
Statement By Baird Equity Research Analyst
"Positive ADR trends into early 2022 should alleviate fears of a more rapid normalization in pricing," Baird Equity Research analyst Colin Sebastian said.
Current-Quarter Revenue Expectation
Airbnb said that it expects current-quarter revenue between $1.41 billion and $1.48 billion, higher than analysts' estimates of $1.24 billion, according to Refinitiv IBES.
Bookings Expected To Exceed Pre-Pandemic Levels
Bookings are expected to significantly exceed pre-pandemic levels, leading to a record gross booking value.
Profit And Revenue
Airbnb reported a profit of eights cents per share and revenue of $1.53 billion. Analysts had expected the company to earn three cents per share and a revenue of $1.46 billion.
Boost From Travel Demand
The company, which is not particularly reliant on big cities to generate revenue, got a boost from travel demand, with the hospitality sector shrugging off a temporary impact from the Omicron variant.