[Asia Economy Reporter Jeong Hyunjin] Airbnb, the world's largest accommodation sharing company, set a record for the highest number of bookings in the second quarter (April to June) of this year, but its stock price fell by 9%. This was because it fell short of market expectations that travel demand, which had shrunk due to COVID-19, would recover and show faster growth.
According to CNBC and others on the 2nd (local time), Airbnb announced in its earnings report that second-quarter revenue reached $2.1 billion (approximately 2.8 trillion KRW) and net profit was $379 million. Revenue increased by 58% compared to the same period last year, and net profit turned positive from a net loss of $68 million in the second quarter of last year.
Airbnb recorded over 103 million bookings in the second quarter. Although this was the highest quarterly figure ever, it fell short of the market forecast of 106.4 million bookings. The total booking amount for the second quarter was $17 billion, up 27% year-on-year, but the revenue growth rate slowed compared to 67% in the first quarter.
Following the earnings announcement after market close, Airbnb's stock price fell about 9% in after-hours trading. CNBC reported, "Wall Street wants faster growth and revenue increase from Airbnb," adding, "The company also explained that it was hit by a series of flight cancellations in the latter half of the second quarter."
Among Airbnb's total bookings in the second quarter, reservations for stays of at least 7 days accounted for 45%, and long-term stays of 28 days or more increased by 25% year-on-year during this period.
Airbnb projected third-quarter (July to September) revenue to be between $2.78 billion and $2.88 billion. Generally, the third quarter is when Airbnb records strong performance due to summer vacation demand. Airbnb explained that July 4th was the day with the highest daily revenue last month and that travel patterns have begun to return to pre-COVID-19 levels.
Meanwhile, Airbnb announced on the same day that it would implement a $2 billion share repurchase program.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
