forecast fourth-quarter revenue slightly below Wall Street estimates on Wednesday, as tourists scale back on travel due to rising costs, uncertain economic conditions and geopolitical turbulence.
Airbnb was one of the biggest beneficiaries of the work-from-anywhere trend during the pandemic as people scoured its platform for exotic locations to work and vacation. However, that slice of revenue is moderating as more companies push their employees to return to the office.”We are seeing greater volatility early in Q4, and are closely monitoring macroeconomic trends and geopolitical conflicts that may impact travel demand,” it said in a statement.
The San Francisco-based company forecast fourth-quarter revenue between $2.13 billion and $2.17 billion, below average analysts’ estimate of $2.18 billion, according to LSEG data. The company, which receives a majority of its revenue from outside the United States, also said it expects its bookings growth to moderate in the fourth quarter relative to the third quarter when international travel demand soared and travel to cities rebounded during the summer months. headtopics.com
In the third quarter, Airbnb said its average daily rate (ADR) rose 3% from a year earlier to $161 while ADR in North America fell for the second consecutive time by 1% in the same period. Nights and Experiences booked in Asia Pacific increased 27% from a year earlier, aided by cross-border recovery with outbound travel from China more than doubling in the same period. The company said its Asia Pacific business fully recovered during the quarter to pre-pandemic levels.
Latin America was the fastest-growing region during the quarter compared with pre-pandemic periods, with nights and experiences booked nearly doubling, the company added.