Last week, Airbnb Inc (NASDAQ: ABNB) reported its third quarter results, topping revenue estimates but falling short on guidance for the undergoing quarter. Airbnb shares slipped about 3% in after-hours trading.
Third Quarter Highlights
With total nights and experiences amounting to 113.2 million and topping StreetAccount consensus estimate of 112.9 million, Airbnb reported revenue grew 18% YoY to $3.40 billion, earning a net income of $4.37 billion, including a one-time income tax benefit, while adjusted income amounted to $1.61 billion. Adjusted EBITDA amounted to $1.83 billion as it grew 26% YoY with free cash flow rising 37% YoY to $1.31 billion.
Fourth Quarter Guidance
Airbnb expects revenue to be in the range between $2.13 billion and $2.17 billion which translates to YoY growth rate between 12% and 14% but the guidance still came short of LSEG's estimate of $2.18 billion. Airbnb continues to work on lowering the cost of stays for consumers, stating that the average nightly price of one-bedroom listing rose only 1%. Despite falling short on estimates, Airbnb continues to grow and generate cash off the charts.
Marriott Also Reported Impressive Results
Marriott International Inc (NASDAQ: MAR) recently also exceeded expectations with its third quarter results. Marriott reported 6-8% growth in revenue per available room globally. During the third quarter, Marriott earned a net income of $752 million on revenue of $5.93 billion. Marriott CEO and President Anthony Capuano was optimistic on travel bookings, stating that trends show that people realized how much they love to travel during the pandemic. Capuano also spoke of the fact that Marriott has a "different, unique, and advantageous approach" in China that is recovering economically.
Booking Also Reported A Revenue Rise Due To Strong Travel Demand
Even Booking Holdings Inc (NASDAQ: BKNG) that saw its business slow down since the escalation of the Israeli-Hamas conflict remains confident of people's desire to travel. Booking reported third quarter revenue grew 21% to $7.3 billion, with net income of $2.51 billion and adjusted EBITDA rising 24% to $3.3 billion despite operating expenses rising 22.2% YoY to $4.2 billion. With both revenue and earnings, Booking topped Wall Street estimates. CEO of Booking Holdings, Glenn Fogel, remains confident of the long-term story for travel which is supported by strong global demand.
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