Travel company Airbnb surpassed analyst expectations on earnings and revenue for the fourth quarter of 2021. The company’s stock was up 4 percent in after-hours trading following the announcement.
Airbnb reported earnings per share of 8 cents compared to 3 cents analysts estimated, according to Refinitiv. Revenue reported for the quarter was $1.53 billion beating the estimate of $1.46 billion that analysts projected, according to Refinitiv.
In the fourth quarter, Airbnb reported 73.4 million nights and experiences booked. The figure was down 8 percent from the previous quarter and fell short of the 74.96 million nights and experiences estimated by analysts for the quarter, according to StreetAccount. The figure is, however, up 59 percent YoY.
In its letter to shareholders, the company mentioned that it had made a rebound from the effects of the company, adding that the omicron variant had fewer effects on bookings and cancellations compared to its predecessor the Delta variant. According to Airbnnb, gross nights booked in December were up over 40 percent from the same period in 2020. “Despite the continued near-term uncertainties, we see evidence of strong pent-up demand: as of the end of January 2022, we had over 25% more nights booked for the summer travel season than at this time in 2019,” the company statement reads.
At $1.5 billion, revenue for the fourth quarter was up 78 percent YoY. The company also reported net income of $55 million, its first in fourth-quarter profit, even though it is a decline from the previous quarter. Compared to the same period in the previous year, however, it is a huge deal. The company recorded a $3.89 billion net loss in the fourth quarter of 2020.
Gross bookings which envelopes host earnings, service fees, cleaning fees and taxes, ran into a total of $11.3 billion in the fourth quarter, slightly over estimates of $11.08 billion, according to StreetAccount. Average daily rates were up 20 percent from the previous year to $154.
Airbnb which is still rebounding from the effects of the Coronavirus pandemic and its tag-along omicron variant issued positive guidance for the first quarter of 2022. The company says it expects nights and experiences booked to exceed what was recorded in 2019 before the pandemic hit. It also said it expects revenue to fall between $1.41 billion and $1.48 billion in the first quarter of 2022. Analysts expect revenue of $1.24 billion.