Airbnb’s first-quarter profit for the year surged to $264 million from $117 million in 2023
Airbnb reported a quarterly profit of $264 million yesterday, up from $117 million a year earlier. Despite the good news, its shares nosedived nearly 7%, the worst in almost a year.
Why?
While the San Francisco-based company exceeded sales and earnings expectations, its projected revenue for the current quarter fell short of analysts’ estimates, sparking investor concern.
In the quarter ending in March, Airbnb’s profit surged, fueled by continued traveler bookings during major events.
Gross bookings rose 12% to $22.9 billion, driven primarily by a 9.5% increase in nights and experiences booked, according to the Wall Street Journal.
Looking ahead, Airbnb anticipates robust demand for summer travel, projecting revenue between $2.68 billion and $2.74 billion for the second quarter.
It expects increased bookings surrounding international events like the Olympics in Paris and the European Cup in Germany.