What's Behind Airbnb's Earnings Beat? 5 Analysts Deep Dive Into Q2 Print

Shares of Airbnb Inc ABNB rose in early trading on Friday, after the company reported an earnings beat for the second quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Wedbush On Airbnb

Analyst Scott Devitt maintained a Neutral rating, while raising the price target from $130 to $145.

Airbnb’s gross bookings and revenues for the second quarter came in slightly higher than consensus estimates, with adjusted EBITDA higher by 12.6%, Devitt said in a note.

“Airbnb continues to demonstrate strong profit growth supported by cost discipline and healthy topline growth,” the analyst wrote. “We are encouraged by ongoing EBITDA growth and margin expansion and are raising our estimates following results,” he added.

Mizuho Securities On Airbnb

Analyst James Lee reiterated a Neutral rating, while lifting the price target from $145 to $150.

Airbnb’s average daily rate (ADRs) continues to be strong, Lee said. “Although room-night-growth guidance for 3Q23 came in light due to tough comps and efforts to work on price affordability, the headwind was offset by elevated ADRs,” he added.

“With ADR growth likely to remain sticky for the rest of the year, FY23 EBITDA margin guidance was raised from flat YoY to be modestly higher,” the analyst further stated.

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RBC Capital Markets On Airbnb

Analyst Brad Erickson reaffirmed a Sector Perform rating, while raising the price target from $105 to $140.

Airbnb’s results were “mixed,” Erickson said. On the bright side, the company’s ADRs remain better than expected, “fueling margin, profit, and cash flow upside,” he mentioned.

“Less positively, the company missed its most important KPI (nights & experiences) again and guided below for Q3 highlighting an affordability issue and driving growth to the low-double digits,” the analyst added.

Needham On Airbnb

Analyst Bernie McTernan maintained a Buy rating and price target of $160.

Airbnb’s results were “more of a win for the bulls than bears,” McTernan wrote in a note.

“ADRs have dominated our conversations with investors and were better than feared which lifted our FY'23 GBV forecast despite lowering Nights booked growth in 2H23,” he added.

Truist Securities on Airbnb

Analyst Patrick Scholes reiterated a Hold rating and price target of $116.

“2Q23 revenues were 2.6% ahead of consensus and Adjusted EBITDA was 12.5% greater than expectations,” Scholes said.

“We see the upside in the quarter primarily from a combination of better than expected ADR and lower than expected Sales & Marketing expense,” he added.

ABNB Price Action: Shares of Airbnb were up 1.3% to $142.52 at the time of publication Friday.