Shares in travel group Airbnb were marked up 4% in after market trading, following the release of fourth quarter results that exceeded Wall Street expectations on earnings and revenues. The results are indicative of the strength of the recovery from the Covid pandemic.
Fourth quarter revenue of $1.53 billion was ahead of a consensus figure of $1.46 billion. Similarly fourth quarter earnings per share of $0.08 eclipsed a $0.03 consensus forecast, and a fourth quarter gross booking value of $11.3 billion exceeded an estimate of $11.09 billion.
Average daily rates for the fourth quarter increased 20% from the prior year to $154.
Looking forward management provided encouragement for a strong first quarter performance with guidance for revenue of $1.41 billion-to-$1.48 billion, compared to a market consensus figure of $1.22 billion.
PREVALENCE OF REMOTE WORKING
Airbnb has been a key beneficiary from the increasing prevalence of remote working, which is becoming a ubiquitous option for millions of Americans.
This has contributed to a 15% rise in the duration of the average trip over the last two years.
Looking forward Chief executive Brian Chesky suggested that the surge in early summer bookings was a clear indication of the vibrancy of the travel recovery.
Bookings for the peak summer travel periods were 25 per cent ahead of the comparable period in 2019.
A SUPPLY CRUNCH
One potential area of concern for the group moving forward is the difficulty it has encountered in securing more hosts to join the network.
Airbnb has 6 million active listings, compared to 5.6 million a year ago.
Chesky is confident that soaring US inflation and the consequent economic impact, would act as a powerful incentive for more individuals to join the Airbnb network.
