Airbnb (ABNB) earnings Q2 2021

Airbnb’s stock fell more than 4% Thursday after the company announced its earnings for the second quarter. The company exceeded Wall Street’s expectations in terms of revenue and bookings, but warned of the expected volatility of the Covid Delta variant.

This is how the company did it:

  • Merits: Loss of 11 cents per share
  • Revenue: $ 1.34 billion versus Refinitiv’s $ 1.26 billion forecast

The company reported 83.1 million room nights and experiences booked, up 29% from the first quarter and a whopping 197% year over year after the travel industry collapsed a year ago amid the Covid-19 pandemic. Analysts surveyed by StreetAccount had expected 79.2 million booked nights and experiences.

Revenue was $ 1.34 billion, nearly 300% more than last year.

Airbnb’s sales and marketing spend increased 175% year over year to $ 315 million in the second quarter. The company attributed the increase in marketing expenses to the “Made Possible by Hosts” campaign. Airbnb warned in February that sales and marketing spending as a percentage of revenue will be higher in the first half of 2021 than in the second half.

Gross Booking Value, Airbnb’s method of tracking host earnings, service fees, cleaning fees, and taxes was $ 13.4 billion, up 320% year over year and above the FactSet consensus of 11.56 Billion dollars.

Airbnb’s net loss decreased to $ 68 million for the quarter, down more than 88% from a net loss of $ 575.6 million last year.

The average daily rate rose to $ 161 from $ 160 in the previous quarter, reflecting an increase in customer spending on homes and experiences. This number has increased by 41% compared to the previous year.

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In its letter to shareholders, the company warned against preparing for volatility as a result of the Covid-19 Delta variant. Airbnb expects Delta to influence travel behavior, particularly with regard to the frequency and timing of guests booking and canceling.

The company said that while it expects the third quarter to deliver the strongest quarterly revenue ever, it expects the nights and booked experiences in the third quarter to be lower than in the second and third quarters of 2019.

“As we exit the second quarter and enter the third quarter, we have a combination of fewer bookings for the fall, just given the nature of some seasonality and any potential impact on Covid concerns,” said Dave Stephenson, CFO of Airbnb, in a call with analysts.

According to Airbnb, vaccination progress and the containment of new variants will be variables that will affect the company’s fourth quarter performance.

“We do not yet know how high the willingness to travel will be in autumn compared to summer,” said a letter to shareholders.

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