MW Airbnb sales forecast just misses expectations, but shares rally

By Bill Peters

'In 2024, we successfully outpaced the travel industry's growth, and in 2025, we aim to build on this momentum,' company says

Airbnb Inc. on Thursday forecast first-quarter sales that came up a bit shy of Wall Street's expectations, but the vacation-rental platform said it expects to continue to build on strides it made last year, as travel demand settles but stays solid.

Shares jumped 14.4% after hours on Thursday.

The company said it expected first-quarter revenue of $2.23 billion to $2.27 billion. Wall Street analysts polled by FactSet expect sales of $2.29 billion. Airbnb $(ABNB)$ said it expected "relatively stable" growth in nights booked over that time.

It forecast an adjusted earnings before interest, taxes, depreciation and amortization margin of "at least 34.5%," even as the company invests in growth. Management said it planned to invest $200 million to $250 million this year in "launching and scaling new businesses to be introduced later this year," without elaborating.

"In 2024, we successfully outpaced the travel industry's growth, and in 2025, we aim to build on this momentum," executives said in a letter to shareholders.

Airbnb's fourth-quarter results also beat expectations. It reported revenue of $2.48 billion, up 12% year over year as people stayed more nights at hosts' properties, and earned 73 cents a share. Gross booking value, or the dollar value of everything booked on through Airbnb, was $17.6 billion.

Analysts polled by FactSet had expected Airbnb to earn 58 cents a share on revenue of $2.42 billion and gross bookings of $17.24 billion.

Airbnb reported the results as travel demand evens out following the postpandemic boom years. The company is trying to make it easier for travelers to find places to stay and offering more assistance to hosts. The company has expanded internationally, in places where newer markets are growing, and is working to take more business from hotels with more flexible vacation options.

-Bill Peters

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 13, 2025 16:26 ET (21:26 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.