On November 7, 2024, Airbnb (ABNB) came up with its third quarter financial results that registered a mixed performance. The firm came in below analyst expectations on earnings, while revenue estimates were beaten. After hours of trading, the stock was down by around 3% following the announcement.

For the third quarter, Airbnb generated revenue of $3.73 billion, an increase of 10% year on year from last year’s 3.4 billion dollars for that same quarter. This was higher than the analysts’ collective average of $3.72 billion. Nonetheless, for this quarter, the company was able to declare EPS of $2.13, which was a slight disappointment to the market as $2.14 had been forecasted. This represented a considerable reduction in profits relative to the net earnings of $4.37 billion or $6.63 a share a year earlier during the same quarter, as the previous year had recorded in 2023, a $2.8 billion tax benefit.

Airbnb reported a gross booking value of $20.1 billion in which revenues earned by hosts, service and cleaning fees and taxes are all inclusive. This estimated value has slightly outperformed the projections range of $19.9 billion given by analysts. Nights and experiences booked rose by 8% to reach 123 million, also exceeding the projection of 121.4 million booked nights and experiences.

The adjusted EBTDA for the quarter reached $2 billion, a 7% increase from the same period the previous year and more than the $1.86 billion wall street contract. Average Daily Rate went up by 1% to 164 dollars.

Looking forward, Airbnb forecasts its revenue for the fourth quarter to be between $2.39-2.44 billion which is consistent with the market view of $2.42 billion.

In a letter to shareholders, Airbnb pointed out that the company’s focus was acquiring foreign markets that are not yet saturated with tourism , noting that growth in these stations was more than double that of the core markets. The firm once more sought to emphasize its commitment to growing its business and most especially, venturing into businesses outside the current line of hotels and accommodation which they will be entering in 2025.

Airbnb has also been improving the quality of its platform, with 300,000 less bookings to improve overall quality of listing content and presently possesses nearly 8 million listings worldwide.