Airbnb stock slumps on signal of slowing post-pandemic bookings
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A light forecast for fourth quarter bookings sent shares of Airbnb (NASDAQ:ABNB) sliding in Tuesdayâs extended session.
Despite a report of record profitability and a push past revenue expectations for the third quarter, the online accommodation platform indicated that bookings will slow from pandemic levels.
For the third quarter, a 25% year over year rise in nights and experiences booked to 99.7M came up just short of the 99.9M analyst expectation. Moving to Q4, the San Francisco-based company expects between $1.8B and $1.88B in revenue, down from $2.24B in the year prior and suggesting a midpoint below the analyst consensus of $1.86B. Additionally, currency impacts are anticipated to hurt earnings into Q4.
âFour weeks into the quarter, we are seeing promising trends in cross-border travel, renewed interest in urban stays, stabilizing cancellations, as well as a strong backlog of future bookings,â a shareholder letter on Tuesday read. âOn a year-over-year basis, we expect Nights and Experiences Booked growth will moderate slightly relative to Q3 2022, while ADR will face some pressure from FX headwinds and business mix.â
The letter added that results may be unpredictable into the coming year given a number of variables confronting the travel industry.
âAs the impact of the pandemic recedes but macro conditions persist, we expect a continued, albeit choppy, recovery of cross-border travel to be a further tailwind to future results,â the company concluded.
Shares of Airbnb (ABNB) slid nearly 10% at the after-hours nadir before moderating losses toward about a 3% drop.
Read more on the key details of the results.