Airbnb's (ABNB) guidance for fiscal 2025 earnings before interest, taxes, depreciation, and amortization margins remains well above buy-side expectations despite planned investments in revenue streams and global expansion, Oppenheimer said in a note Friday.
In Q4, bookings increased by 12% year-over-year and were 2% higher than consensus estimates, while Q1 guidance suggests continued growth of about 8.5%, according to the note.
Airbnb is investing between $200 million and $250 million to launch new revenue streams targeting experiences and services marketplaces as part of its global expansion strategy. This investment comes even as the company faces a 3-point foreign exchange revenue headwind, the firm added.
Oppenheimer said that Airbnb's performance varied by region with North America seeing a 3% increase in the average daily rate for short-term stays and a 6% gain in Europe, the Middle East, and Africa.
The firm raised its 2025 earnings before interest, taxes, depreciation, and amortization estimate by 5% on higher margin assumptions, reflecting confidence in Airbnb's ability to maintain core margins while expanding into new markets.
Oppenheimer maintained its perform rating on Airbnb's stock.
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