Airbnb Stock Slides After Q3 Performance, Q4 Outlook: Explainer

Airbnb Inc ABNB reported third-quarter financial results Wednesday after the bell. Here's a rundown of the report. 

Q3 Earnings: Airbnb said third-quarter revenue increased 18% year-over-year to $3.4 billion, which beat the consensus estimate of $3.37 billion, according to Benzinga Pro. 

The company said its strong top-line results were driven by travel demand and foreign exchange rate tailwinds.

Airbnb reported quarterly earnings of $6.63 per share, which beat analyst estimates of $2.10 per share.

The company generated $1.3 billion in net cash provided by operating activities and free cash flow in the third quarter. 

Gross booking value was up 17% year-over-year to $18.3 billion, partially driven by strong growth in nights and experiences booked, which came in at 113.2 million, up 14% year-over-year. 

Airbnb noted that the third quarter was a record summer travel season on the company's platform. The company said international expansion markets are gaining momentum and it has added nearly 1 million active listings so far in 2023. 

Airbnb highlighted the more than 50 upgrades it has made to its service as part of its 2023 summer release. The company also teased three major upgrades coming in its winter release, scheduled for Nov. 8. 

Outlook: Airbnb sees fourth-quarter revenue in the range of $2.13 billion to $2.17 billion, as against a consensus of $2.18 billion. The company expects record-high fourth-quarter adjusted EBITDA. 

"Q3 was a record-breaking summer travel season for our business. We are seeing greater volatility early in Q4, and are closely monitoring macroeconomic trends and geopolitical conflicts that may impact travel demand," the company said in a letter to shareholders. 

"We currently expect our nights booked growth in Q4 2023 to moderate relative to Q3 2023. Meanwhile, we expect ADR in Q4 2023 to be stable to slightly up compared to the same period last year."

Management will hold a conference call to discuss these results at 4:30 p.m. ET.

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ABNB Price Action: Airbnb shares were down 3.11% after hours at $115.75 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Airbnb.