August 8, 2022

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Airbnb stock falls sharply despite earnings beat, plan to repurchase $2 billion in stock

2 min read

Airbnb Inc. said Tuesday that it had its first profitable second quarter as a public company, and that it is so confident in its business that it is buying back $2 billion of its stock.

“Our Q2 results demonstrate that Airbnb has achieved growth and profitability at scale,” Chief Executive Brian Chesky said during prepared remarks on the company’s earnings call.

shares fell as much as 9.5% after hours, after rising nearly 5% in the regular session to close at $116.34. They have increased 14% over the past five days.

The lodging-booking company reported second-quarter net income of $379 million, or 56 cents a share, compared with a loss of $68 million, or 11 cents a share, in the year-ago period. Revenue rose to $2.19 billion from $1.34 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of 45 cents a share on revenue of $2.1 billion.

Airbnb said demand for travel is strong almost everywhere. The company’s gross bookings amounted to $17 billion, up 27% year over year and 73% higher compared with the pre-pandemic 2019 quarter. Customers booked 103.7 million nights and experiences, the highest ever and up 24% compared with the 2019 quarter. Gross nights booked for cross-border travel continued to beat pre-pandemic levels, and doubled compared to the year-ago quarter, the company said. 

Those numbers fell short of analysts’ expectations, though, of 106.2 million nights and experiences booked and $17.13 billion in gross bookings.

The company also reported that its free cash flow for the second quarter was $795 million, its highest for a second quarter. That brings its total cash on hand to nearly $10 billion. On the conference call, Chief Financial Officer Dave Stephenson said the company doesn’t need that much cash on hand, which is why it is buying back shares. He and Chesky both said they remain committed to growing the business and will…

2022-08-02 19:05:00

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