Airbnb Q1 Earnings Preview: Analysts Expect 'Resilient Travel Demand'

Online travel company Airbnb Inc ABNB reports first-quarter financial results on Wednesday, May 8 after market close.

Here are the earnings estimates, what analysts are watching and key items to watch.

Earnings Estimates: Analysts expect Airbnb to report first-quarter revenue of $2.06 billion, according to data from Benzinga Pro.

The company reported revenue of $1.82 billion in last year's first quarter. Airbnb has beaten revenue estimates from analysts in nine of the last 10 quarters, including six straight.

Analysts expect the company to report earnings per share of 24 cents in the first quarter, compared to earnings of 18 cents per share in last year's first quarter. Airbnb has beaten analysts' estimates for earnings per share in the last 10 quarters.

Guidance from the company calls for first-quarter revenue in a range of $2.03 billion to $2.07 billion.

Related Link: Airbnb Q4 Earnings – Revenue Beat, GBV Up 15%, $6B Buyback And More

What Analysts Are Saying: Airbnb is investing to become a travel icon, KeyBanc analyst Justin Patterson said in a recent note.

Patterson has a Sector Weight target and no price target on Airbnb.

"We expect Airbnb could deliver a better than expected 1Q given NT (near-term) travel demand," Patterson said. "We expect investment in supply and more major platform updates to remain a theme, and do not expect meaningful changes in annual margin commentary."

The analyst increases estimates for gross booking volume for 2024 and 2025 based on "resilient travel demand."

Patterson also points to Google Trends data showing searching for Airbnb up 1% year-over-year worldwide and up 2% quarter-to-date.

"We believe improving host experiences and international expansion are key growth opportunities," he said.

Sponsored listings could provide "meaningful" upside to Airbnb's EBITDA Mizuho Securities analyst James Lee said in a recent note.

The analyst raised the price target from $150 to $200.

Airbnb could see 15% EBITDA upside from sponsored listings — a "natural extension" of its existing business, Lee said, adding.

Here are other analyst ratings on Airbnb.

• Wedbush: Neutral rating, $160 price target
• Benchmark: Initiates with Buy rating, $190 price target
• Needham: Downgrades from Buy to Hold, no price target
• B. Riley: Initiates with Neutral, $150 price target
• Wells Fargo: Underweight rating, raises price target from $107 to $127

Key Items to Watch: Consumer demand and nights booked will be key items for investors to watch when the company reports.

The company previously said it expected nights booked growth to moderate in the first quarter and average daily rates to be flat or slightly up.

A solar eclipse could prove to be beneficial for Airbnb's first-quarter results and could be something for investors to monitor as a potential one-off, but also a way that the travel company can take advantage of trends.

Airbnb CEO Brian Chesky recently said that the Asia-Pacific region has the "greatest growth potential." The CEO could expand on this opportunity in the results or conference call.

ABNB Price Action: Airbnb shares trade at $157.09 versus a 52-week trading range of $103.55 to $170.10. Airbnb shares are up 27% over the last year.

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