Airbnb (ABNB.US) is trading 3% lower, following the release of the Q4 2023 earnings report. This drop is somewhat puzzling given that the earnings report as well as outlook for the first quarter of 2024 were solid.
Airbnb reported a 16.6% YoY jump in Q4 revenue to $2.22 billion, beating median analysts' expectations of $2.16 billion. Adjusted EBITDA came in much above the expectations, with adjusted EBITDA margin improving by 600 basis points compared to Q4 2022. Company reported a net loss of $349 million, translating into a loss per share of $0.55. However, Q4 net income was negatively impacted by a non-recurring tax withholding expenses of around $1 billion. Adjusting results for this one-off item, Airbnb reported a solid profit of $0.76 per share. Apart from an unadjusted net income figure, Airbnb also missed on free cash flow expectations, reporting just $46 million compared to over $494 million expected.
Company-specific measures like gross bookings or night and experiences booked grew at a double-digit pace and also came in better than expected. Gross booking value per night booked grew 2.6% YoY but Airbnb said that it expects it to moderate in the first quarter of 2024. Nevertheless, revenue guidance for Q1 2024 suggests 11.6-13.9% YoY growth. Company expects to maintain an adjusted EBITDA margin of at least 35% in 2024. Airbnb also authorized a new $6 billion share repurchase program. To put this figure into perspective, Airbnb repurchased own stock worth $3.37 billion in full-2023.
Q4 2023 earnings
- Revenue: $2.22 billion vs $2.16 billion expected (+16.6% YoY)
- Gross profit: $1.834 billion vs $1.77 billion expected (+17.8% YoY)
- Gross margin: 82.7% vs 82.2% expected (81.9% a year ago)
- Adjusted EBITDA: $738 million vs $643.5 million expected (+46% YoY)
- Adjusted EBITDA margin: 33% vs 29.9% expected (27% a year ago)
- Net income (unadjusted): -$349 million vs $428 million expected
- Adjusted EPS: $0.76 vs $0.68 expected ($0.48 a year ago)
- Free cash flow: $46 million vs $494.3 million expected (-90% YoY)
- Gross booking value: $15.5 billion vs $15.2 billion expected (+15% YoY)
- Nights and experiences booked: 98.8 million vs 98.4 million expected (+12% YoY)
- Gross booking value per nights and experiences booked: $156.7 vs $154.4 expected (+2.6% YoY)
Q1 2024 forecast
- Revenue: $2.03-2.07 billion vs $2.02 billion expected
In spite of solid Q4 earnings and positive Q1 outlook, Airbnb (ABNB.US) launched today's trading with a bearish price gap. Stock swung up and down during the session but did not manage to erase the drop and continued to trade around 3% lower on the day. Stock is pulling back from the $153 resistance zone which halted upward moves a few times recently.
Source: xStation5
