Airbnb reports better-than-expected revenue and beats on guidance

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Airbnb reported better-than-expected revenue for the fourth quarter on Tuesday and issued an optimistic forecast for the current period. The stock fell more than 4% in extended trading.

Here's how the company did:

• EPS: 55-cent loss. It's not immediately clear if that's comparable to the 62-cent profit estimate, according to LSEG, formerly known as Refinitiv
• Revenue: $2.22 billion vs. $2.17 billion expected by analysts, according to LSEG

Revenue climbed 17% from $1.9 billion in the same quarter a year earlier. Airbnb posted adjusted earnings of $738 million in the fourth quarter. Analysts were expecting $645 million, according to StreetAccount.

Airbnb reported a net loss of $349 million, or 55 cents a share, compared to net income of $319 million, or 48 cents per share, a year earlier. Airbnb said its loss included lodging tax reserves and non-recurring tax withholding expenses of around $1 billion.

The company also announced approval to buy back up to $6 billion of its Class A common stock, according to a release.

In its shareholder letter, Airbnb said the company is at an "inflection point" after spending the last three years upgrading and adding features to its main room-sharing service. Airbnb said it's investing in more under-penetrated markets abroad in 2024, and that it will share plans to expand beyond its core business later this year.

Airbnb said revenue in the first quarter will be between $2.03 billion and $2.07 billion, while Wall Street was expecting $2.03 billion, according to LSEG. The company said the quarter started out strong, with more than 6 million guests celebrating the new year in an Airbnb.

Gross booking value, which Airbnb uses to track host earnings, service fees, cleaning fees and taxes, came in at $15.5 billion in the fourth quarter. The company reported 98.8 million nights and experiences booked, up 12% from a year ago, and above the 98 million expected by analysts, according to StreetAccount.

Airbnb said guest demand "remains strong," particularly for first-time users. The company said that after the "volatility" impacted the business in October, when the Israel-Hamas war broke out, its nights booked growth accelerated through the rest of the period.

Average daily rates increased by 3% from a year ago to $157 in the fourth quarter, and the company ended 2023 with 7.7 million active listings, up 18% from a year earlier.

Airbnb said in the investor letter that it has seen "double-digit supply growth" in active listings across every region, while the Asia Pacific and Latin America regions grew the most.

Airbnb will hold its quarterly call with investors at 4:30 p.m. ET.

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