Airbnb deepens despite first profitable quarter in history 🚩

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)

Earnings 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