(Reuters) – Vacation rental company Airbnb reported higher quarterly profit on Wednesday. This was driven by increased travel in international markets as bookings in North America slowed during the period.
After the bell, the company's stock rose 3%.
In the first quarter, lodging companies expect travel demand outside North America to boost revenue as travel accelerates in Asia-Pacific and Latin America. The company said it expects stable growth through 2024 due to travel demand centered on international events.
Active listings on the platform grew 17% year over year, with Asia and Latin America leading the way in additions.
Rooms and experiences booked in the first quarter totaled approximately $133 million, an increase of 9.5% year-over-year, with bookings in Asia Pacific and Latin America increasing 21% and 19%, respectively. The company said bookings in North America “decelerated slightly” during the quarter.
The San Francisco-based company reported net income of $264 million, or 41 cents per share, for the quarter ended March, compared to net income of $117 million, or 41 cents per share, for the same period in 2023. 18 cents per share).
Total revenue for the quarter was $2.14 billion, up 18% from the same period last year.
The average cost per night or average price per day on Airbnb in the reported quarter was $173, an increase of 3% year over year. The company saw an increase in bookings for short-term stays and entire homes, boosting profit margins.
The company forecast second-quarter sales of $2.68 billion to $2.74 billion, lower than analysts' expectations of $2.74 billion. This was due in part to exchange rates and the timing of Easter, which was advantageous in the first quarter, but could put pressure on earnings in the second quarter. said the company.
Heading into the summer, Airbnb said it expects year-over-year revenue growth to accelerate in the third quarter, due in part to travel demand centered on the Olympics and Eurocup.
(Reporting by Aishwarya Jain in Bengaluru and Doinsola Oladipo in New York; Editing by Shailesh Kuber)
