Airbnb soars over 11% on upbeat revenue outlook

Airbnb (ABNB.US) shares rose over 10.0% on Wednesday after the home-sharing company posted better than expected Q4 results and issued an upbeat financial outlook.

• Company earned 48 cents per share, well above market estimates of 25 cents. Revenue of $1.90 billion also topped analysts’ projections of $1.86 billion.

• Revenue rose by 24%YoY and it was the company’s highest fourth quarter ever

Company's revenue suffered during the pandemic, however since then business was expanding quickly. Revenue growth over the last three years has been exceptional, averaging 58.9% annually. Source: Barchart

• Bookings of $13.5 billion, came shy of analysts' expectation of $13.6 billion. 

• Nights and Experiences Booked: 88.2 million, up 14.8 million year on year

• The average daily rate was $152.81, higher than the $151.40 analysts expected.

Since 2021 the number of nights booked, a key usage metric for the company, rose 36% annually to 88.2 million users, which indicates growing interest among clients. Source: Barchart

• "All regions saw material growth in 2022 as guests increasingly crossed borders and returned to cities on Airbnb," executives wrote. Company expects "new and improved pricing and discounting tools" that it's introducing this year to "drive greater affordability and value for guests, support bookings growth, and therefore also help hosts be more successful."

• Company expects robust demand at the beginning of the year and Q1 revenue between $1.75 billion and $1.82 billion, above the $1.69 billion expected by analysts polled by Refinitiv.

Airbnb (ABNB.US) stock launched today's session with a massive bullish price gap and is trading above support at $131.70 which is marked with 38.2% Fibonacci retracement of the last downward wave. If current sentiment prevails, an upward move may accelerate towards local resistance at $147.50. Source: xStation5