Thursday's Market Minute: Airbnb Earnings: What You Need To Know

Airbnb ABNB is set to release its second-quarter 2021 earnings results today after the bell. Zacks estimates Airbnb revenue will be $1.28B, and EPS will come in at -$0.47. Last quarter, Airbnb reported EPS of -$0.92 and revenue of $886.9 million. Airbnb has seen growth from the recovering travel sector as many delayed and canceled travel plans start to be rebooked. In a recent interview, CEO Brian Chesky stated that the current recovery is “going to be the travel rebound of the century.”

Chesky notes that domestic travel is “going really strong” and is confident about the future of the travel sector. Furthermore, Airbnb has implemented health and safety requirements for both hosts and guests of Airbnb listings, a required “5-step cleaning process” that happens in between guest stays, and the “extenuating circumstances policy” that allows for last-minute cancellations related to the virus.

Despite this optimism, the Delta variant and increasing cases of COVID-19 may cause a setback for the company. On the other hand, traders should still consider that Airbnb’s home and apartment rental offerings may be viewed as a safer travel option as Covid-19 cases rise. It will also be important to watch for Airbnb’s unearned fees; reservations made through Airbnb that have yet to take place. This measure will provide a valuable understanding of whether or not people plan to travel this upcoming year. While Airbnb has been a popular reopening trade, investors should keep an eye on earnings to understand how consumers’ travel confidence and the new Delta variant will impact the company.