Online accommodations platform Airbnb (NASDAQ: ABNB) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
Airbnb met analysts’ revenue expectations last quarter, reporting revenues of $2.75 billion, up 10.6% year on year. It was a slower quarter for the company, with a miss of analysts’ booking estimates and underwhelming revenue guidance for the next quarter. It reported 125.1 million nights booked, up 8.7% year on year.
Is Airbnb a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Airbnb’s revenue to grow 9.4% year on year to $3.72 billion, slowing from the 17.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.14 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Airbnb has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.9% on average.
Looking at Airbnb’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Booking delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 4.8%, and EverQuote reported revenues up 163%, topping estimates by 3%. Booking traded up 4.5% following the results while EverQuote was also up 3.9%.
Read our full analysis of Booking’s results here and EverQuote’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 8.6% on average over the last month. Airbnb is up 4.9% during the same time and is heading into earnings with an average analyst price target of $129.46 (compared to the current share price of $139).
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