Airbnb disappoints traders with spring outlook, hopes to accelerate growth come summer

Airbnb (NASDAQ:ABNB) stock fell in Wednesday’s late dealing with the property-rental app firm disappointing investors with softer-than-expected forward guidance.

The company claimed it was seeing ‘robust’ demand for travel, and pointed to the Paris Olympics among its potential catalysts for bookings this summer.

It said that it is expecting growth will accelerate in its third quarter, but for its second quarter (its current quarter) the company projected revenue between $2.68 billion and $2.74 billion – with the range coming in beneath Wall Street forecasts pitched at a $2.74 billion consensus.

Results for Airbnb’s first quarter featured $2.14 billion of revenue, up 18% against last year’s total of $1.82 billion, whilst the platform’s net income came in at $264 million, up from $117 million in 2023.

Earnings for the quarter arrived at $424 million and on a ‘per share’ basis those earnings equated to 41 cents.

Wall Street had anticipated a $2.06 billion revenue total for the quarter, and analysts had pencilled in earnings forecasts of $326 million and just 24 cents per share.

Airbnb’s current outperformance was for nought, however, as the more cautious outlook evidently spooked reactionary traders.

In New York, Airbnb shares were down $12.86 or 8.14% to change hands at $157.90 immediately after the results.