Shares of travel company Aribnb (ABNB.US) are losing nearly 10% today despite the company reported stronger than expected results for Q1. At the same time, it presented a rather cautious outlook for the second quarter of the year. The Q2 historically, along with Q3, has been the most successful for its business due to a summer season favorable to travel demand. Investors are concerned that possible consumer weakness will limit growth potential later in the year. At the same time, Q1 2023 was the first profitable quarter in the company's history.
Revenues: $1.82 billion vs. $1.79 billion forecast (20% y/y growth)
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appEarnings per share (EPS): $0.18 vs. $0.09 forecasts ($0.03 loss in Q1 2022)
Net profit: $117 million vs. $19 million loss in Q1 2022
Airbnb stressed that the start of the year has been strong for the company and expects an equally strong travel season in the summer. However, it cautioned that y/y comparisons may be difficult due to exceptionally strong comparative demand from Q2 2022 (recovery from Omicron variance).
- The company estimates Q2 revenue in the range of $2.35 billion to $2.45 billion. Analysts surveyed by Refinitiv had expected $2.42 billion. Looking at the market's reaction to these forecasts - it seems too exaggerated. On the other hand, Aribnb's shares have gained praie 50% since the beginning of the year, so the publication of the report may mean 'selling the facts';
- The company reported a new record for bookings in the first three months of the year ($121 million, 19% y/y growth), highlighting the strength of demand despite fears of a recession. Average daily booking rates were flat compared to a year ago, at $168 in the first quarter although active listings were up 18% year-on-year;
- In a statement, the company conveyed that it registered customers booking travel well in advance in Q1, which could herald a stronger Q2. Consumers in the Asia-Pacific region, where room nights booked in Q1 rose more than 40% year-on-year, look particularly strong;
- Airbnb conveyed that it has postponed higher marketing spending to the first half of the year to support the peak summer travel season. The company intends to increase its presence in less mature markets;
- Airbnb plans to integrate artificial intelligence features, including GPT-4, into its platform over the next year.
Airbnb (ABNB.US) shares, D1 interval. The opening near $110 indicates that if bears. The key resistance appears to be the 71.6 Fibonacci retracement of the upward wave started in January, which runs at the psychological support level at $100 per share. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
