Airbnb Posts Strong Q4: Global Expansion Strategy To Lend Upside To Growth Rates, Analysts Say

Shares of Airbnb Inc ABNB were climbing in early trading on Friday, after the company reported upbeat fourth-quarter results.

The company reported its quarterly results amid an positive earnings season. Here are some key analyst takeaways.

Goldman Sachs On Airbnb

Analyst Eric Sheridan upgraded the rating from Sell to Neutral, while lifting the price target from $110 to $153.

Airbnb reported "solid" fourth-quarter results, with a "sizeable beat" on adjusted EBITDA, Sheridan said in the upgrade note. Management indicated an adjusted EBITDA margin floor of 34.5% for this year, which could be a "stimulant for growth exiting 2025," he added.

The company is facing a healthy demand environment for global travel, the analyst stated. Airbnb's investment strategies targeting new geographies could "produce upside to growth rates relative to more mature market growth rates," he further wrote.

DA Davidson On Airbnb

Analyst Tom White maintained a Neutral rating, while raising the price target from $131 to $170.

Airbnb reported strong fourth-quarter results, with gross bookings, revenues and adjusted EBITDA ahead of expectations, White said in a note, adding that growth accelerated as the quarter progressed.

Management's first-quarter guidance was "solid, with reported Nights growth expected at +8.5%," the analyst stated. CEO Brian Chesky stated this Airbnb was beginning a “new chapter” in 2025, with past tech stack development setting the stage "for a period of extensible product and feature launches that have the potential to bring sizable new revenue streams."

Wedbush On Airbnb

Analyst Scott Devitt reiterated an Outperform, while lifting the price target from $155 to $175.

Airbnb recorded room night growth of 12.3% year-on-year in the fourth quarter, exceeded Street estimates by around 240 basis points (bps), Devitt said. Revenue and adjusted EBITDA came in ahead of consensus by around 2% and 17%, respectively, he added.

Airbnb exited 2024 witnessing strong underlying demand trends, the analyst stated. Management guided to first-quarter room night growth of about 8.5% year-on-year and revenue growth of 4%-6%, both missing estimates, Devitt said. Excluding one-off factors, the company's guidance for room night growth and revenue growth would have been 9.5% and 11%, respectively, he further stated.

Check out other analyst stock ratings.

Truist Securities On Airbnb

Analyst Patrick Scholes maintained a Buy rating and price target of $123.

Airbnb's revenues of $2,480 million grew 11.8% year-on-year and came in ahead of the consensus of $2,421 million, Scholes said. The company's gross booking value (GBV) came in at $17.6 billion, beating consensus of $17.2 billion.

Booking volume growth is likely to "return to a more normal trajectory in 1Q," the analyst wrote. The midpoint of management's revenue guidance for the first quarter is below consensus of $2,298 million, he stated.

JMP Securities On Airbnb

Analyst Nicholas Jones reiterated a Market Perform rating on the stock.

Although currency headwinds and tough comps weighed on the company's first-quarter revenue guidance, the adjusted EBITDA margin commentary "was better than expected," Jones said. Airbnb plans to invest an extra $200 million to $250 million in 2025 to launch the first of its new businesses, he added.

The company's objective is to launch one or two new businesses every year, "with the goal of each adding $1B of incremental revenue per year at scale," the analyst stated. Airbnb intends to grow its presence in underpenetrated markets, "with a focus on finding product-market fit, increasing awareness, and driving traffic."

Needham On Airbnb

Analyst Bernie McTernan reaffirmed a Hold rating on the stock.

Airbnb's gross booking value (GBV) grew by 13.4%, much higher than expected, McTernan said. The company gained momentum through the quarter "culminating with December seeing the highest nights booked growth out of any month in 2024," he added.

Management guided to 34.5% EBITDA margins in 2025, which includes new investments of $200 million to $250 million, the analyst stated. "The announcement for the product launch associated with these investments is expected to come in May," he further wrote.

ABNB Price Action: Shares of Airbnb had risen by 15.72% to $163.21 at the time of publication on Friday.

Read More: Airbnb Crushes Q4 Estimates As ‘Classic Hotel Users’ Flock To Short-Term Rentals—Here’s What’s Driving The Surge In ‘Nights And Experiences’

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