Airbnb saw a notable surge in profits during the last quarter, more than doubling its net income to $264 million compared to $117 million the previous year. Despite this impressive growth, the company’s stock experienced a roughly 7% decline in after-market trading on Wednesday due to management’s disappointing revenue forecast.
In terms of revenue, Airbnb reported an 18% increase to $2.14 billion for the first quarter. Earnings per share also saw a significant jump to 41 cents, surpassing analysts’ expectations of 23 cents, according to FactSet.
The growth in earnings was attributed in part to the timing of the Easter holiday, which fell in the first quarter this year as opposed to the second quarter in 2023. Additionally, the inclusion of the Feb. 29 “leap day” provided an extra day of business compared to the previous year.
Looking ahead, Airbnb projected second-quarter revenue to be in the range of $2.68 billion to $2.74 billion. However, this forecast fell short of Wall Street’s expectations, attributed partly to unfavorable exchange rates and the earlier timing of Easter.
