Airbnb's Q2 2023 Results: Revenue Beats Estimates, EPS Surges by 75%

Barclays's Mario Lu raised their price target on Airbnb (NASDAQ: ABNB) by 3.7% from $136 to $141 on 2023/08/04. The analyst maintained their Hold rating on the stock.

Lu described Airbnb's Q2 2023 results, which were reported on August 3rd, as "mixed." On the positive side, Lu noted that listings growth had accelerated and now totaled over 7 million, which is a positive indication for future growth. However, Lu cautioned that "the stock's valuation feels full," accounting for their Hold rating.

For Q2 2023, Airbnb reported earnings per share (EPS) of $0.98, surpassing the Zacks Consensus Estimate by 27.27% and showing a significant increase of 75% compared to Q2 2022's $0.56. The company also reported revenue of $2.48 billion, beating the Zacks Consensus Estimate by 2.81% and showing an 18.1% increase compared to Q2 2022's $2.8 billion. Additionally, Airbnb's adjusted EBITDA margin for Q2 2023 was 44%, down from Q1 2022's 34%. The company reported 115.1 million nights and experiences booked, representing an 11% year-over-year increase, and a gross booking value (GBV) of $19.1 billion, up 13% year-over-year.

Looking ahead to Q3 2023, Airbnb's management expects revenue in the range of $3.3 billion to $3.4 billion, implying a growth rate of 14% to 18% year-over-year. The company anticipates that revenue growth will outpace the growth in nights and experiences booked, and they project an increase in adjusted EBITDA margin from Q3 2022's 51%.

During the earnings call, Chairman, CEO & Co-Founder Brian Chesky highlighted several positive business trends in Q2. He mentioned that guest demand at Airbnb remained strong, with active bookers growing in every region, and an increase in first-time bookers compared to the previous year. Chesky also noted that guests are traveling farther, with a 16% increase in cross-border nights booked compared to a year ago. He expressed particular enthusiasm for the recovery of the Asia Pacific region, where inbound international travel increased by 80% compared to the same period last year. Additionally, Chesky mentioned that guests are staying longer on Airbnb, reflecting the trend of people being flexible about where they live and work.

In addition to Mario Lu's rating, other analysts also updated their views on Airbnb on August 4th. Stephen Ju from Credit Suisse raised their price target by 10% to $150 and maintained a Hold rating on the stock. Colin Sebastian from Baird raised their price target by 16.7% to $120 and also maintained a Hold rating. James Lee from Mizuho raised their price target by 3.4% to $145 and maintained a Hold rating.

According to data from WallStreetZen, 38.9% of top-rated analysts currently rate ABNB as a Strong Buy or Buy, while 50% see it as a Hold, and 11.1% either recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that ABNB's upcoming year will deliver earnings per share (EPS) of $3.83, representing a 6.3% increase on a year-over-year basis.

Since Airbnb's latest quarterly report on August 3rd, the stock price has decreased by 0.5%. However, when looking at the year-over-year performance, the stock is up 17.6%. During this period, Airbnb has outperformed the S&P 500, which has shown a 7.9% increase.

Barclays analyst Mario Lu is ranked in the bottom 38% out of 4,288 Wall Street analysts by WallStreetZen. They have an average return of 0% and a 51.5% win rate. Lu specializes in the Industrials and Communication Services sectors, among others.

Airbnb, Inc. is a company that operates a platform connecting hosts and guests worldwide, enabling them to book stays and experiences. The company primarily offers private rooms, primary homes, or vacation homes. Founded in 2007 and headquartered in San Francisco, California, Airbnb, Inc. was formerly known as AirBed & Breakfast, Inc. before changing its name in November 2010.

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