Online accommodations platform Airbnb (NASDAQ: ABNB) will be reporting results this Thursday after market close. Here’s what to look for.
Airbnb beat analysts’ revenue expectations last quarter, reporting revenues of $3.61 billion, up 16.5% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA estimates and solid growth in its bookings. It reported 148 million nights booked, up 10.4% year on year.
Is Airbnb a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Airbnb’s revenue to grow 15.9% year on year, improving from the 9.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Airbnb has a history of exceeding Wall Street’s expectations.
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’s revenues decreased 1.3% year on year, missing analysts’ expectations by 7%, and Fiverr reported a revenue decline of 15.8%, topping estimates by 8.4%. Fiverr traded up 3.8% following the results.
Read our full analysis of Booking’s results here and Fiverr’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 4.4% on average over the last month. Airbnb’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $184.18 (compared to the current share price of $165.66).
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