Airbnb tops analysts’ Q2 revenue estimates as travel rebounds

Airbnb Inc. (NASDAQ: ABNB) stock dropped over 4% after reporting a Q2 loss of $0.11 per share despite revenue and bookings topping Wall Street projections. Revenue was up almost 300% YoY to $1.34 billion, beating Wall Street analysts’ estimates of $1.26 billion. In addition, there were 83.1 million nights booked during the quarter, a 29% QoQ increase and a 197% YoY increase after the travel sector collapsed last year amid the pandemic. Wall Street analysts had predicted 79.2 million bookings.

Airbnb posts strong Q2 2021 results

The company’s CEO and Co-founder Brian Chesky said:

“We’re proud of our strong results this quarter, which again surpassed 2019 revenue levels. Travel is different than before, and because of our adaptable business model and continued product innovation to meet the changing needs of our guests, Airbnb is leading the travel rebound.”

Sales and marketing expenses grew 175% YoY to $315 million, attributed to the increase in marketing expenses for the Made Possible by Hosts initiatives. In February, the company warned that sales and marketing expenses relative to revenue in 1H 2021 could be higher than 2H 2021.

Net loss narrowed to $68 million during the quarter, dropping 88% from $575.6 million a year ago. The average daily rate increased to $161 from $160 in Q1, reflecting the increasing number of visitors spending on experiences and homes.

Delta variant could impact travel in Q3 2021

According to CNBC, the company has warned shareholders that they should brace for volatility because of the spreading COVID-19 delta strain. In addition, the company said that the virus would impact travel behavior regarding how often customers will book and cancel. In Q3, Airbnb expects robust quarterly revenue despite nights and experiences booked likely to be below those reported in Q2 and Q3 2019. CFO Dave Stephenson told:

“As we exit Q2 and come into Q3, we have a combination of fewer bookings for the fall, just given the nature of some of the seasonality, and any kind of impact potentially on Covid concerns.”

The company said that restrictions ease and vaccinations had enabled more people to travel as evidenced by solid bookings in the second quarter. Travelers have started to travel, and in Europe, cross-border travel bookings were up in June 2021. However, the company said they are not certain about peoples’ travel in fall relative to summer.