Airbnb (NASDAQ:ABNB) reported better-than-expected results for the fourth quarter of 2023 with support from strong travel demand and favorable foreign exchange rates. Despite the Q4 beat, ABNB stock fell about 4% in yesterday’s extended trading session.
Airbnb provides an online marketplace and hospitality service platform that facilitates lodging, primarily homestays, and tourism experiences.
Q4 Earnings Snapshot
ABNB reported Q4 adjusted EBITDA of $738 million, up from $506 million in the year-ago quarter and the consensus estimate of $645 million. The upside was primarily due to revenue growth, cost control measures, and higher interest income. Meanwhile, net revenue increased 17% year-over-year to $2.2 billion and came in above the Street’s estimate of $2.17 billion.
In terms of key metrics, Airbnb witnessed a gross booking value of $15.5 billion, up 15% from the same quarter last year. Further, Airbnb customers booked 98.8 million nights and experiences during the quarter, up 12% year-over-year. Also, active listings were up 18%, and the average daily rate rose 3% to $157.
Regarding capital deployment activities, Airbnb announced plans to buy back up to $6 billion worth of common stock under a new repurchase program.
Q1 and 2024 Outlook
The company expects first-quarter revenue to come in the range of $2.03 billion to $2.07 billion, representing year-over-year growth of 12% to 14%. The midpoint of the projection surpasses the consensus analyst estimate of $2.03 billion.
Furthermore, ABNB forecasts the full-year 2024 adjusted EBITDA margin to be at least 35%.
Is Airbnb a Buy, Sell, or Hold?
Currently, Wall Street is sidelined on Airbnb stock with a Hold consensus rating. This is based on four Buys, 15 Holds, and three Sells. The average ABNB stock price target of $139.21 suggests a 7.7% downside potential. Over the past year, the stock has gained 24.8%.
