Airbnb (ABNB, Financial) experienced a decline in stock value despite surpassing Q1 earnings and sales expectations. The company reported a 9.5% year-over-year increase in Nights and Experiences Booked, aligning with its forecast but showing a slowdown from Q4's 12.0% growth. Looking ahead, Airbnb anticipates this growth rate to stabilize in Q2.
Despite these positive earnings, Airbnb's stock hit multi-month lows. The company's Q2 revenue guidance of $2.68 to $2.74 billion was below analyst expectations, contributing to the decline. This guidance disappointment comes even as competitors like Expedia Group (EXPE, Financial) and Booking Holdings (BKNG, Financial) acknowledge losing market share to Airbnb.
Additionally, the growth in Nights and Experiences Booked was less impressive than expected, especially compared to Booking Holdings' significant bookings growth in Q1.
However, Airbnb highlighted several positive developments in Q1:
- The company improved its platform by removing underperforming listings, which temporarily reduced growth but improved quality. Active listings grew by 17% year-over-year when excluding these deletions.
- Mobile app downloads in the U.S. increased by 60%, with app bookings now representing 54% of total bookings, a 5-point increase from last year.
- Airbnb aggressively invested in underpenetrated markets, achieving double the bookings growth rate of its core markets.
Overall, Airbnb's Q1 results were mixed. While growth is moderating as expected, the company's strategic improvements and market expansion provide a solid foundation for future growth, despite current market reactions and competitive pressures.
