Airbnb's third-quarter earnings more than halved year-over-year while the vacation rental company's revenue narrowly advanced above Wall Street's estimates. Per-share earnings declined to $2.13 during the three months ended September from $6.63 a year earlier, trailing the Capital IQ-polled consensus for $2.15.
Revenue increased 10% year-over-year to $3.73 billion, just above the Street's $3.72 billion view. Nights and experiences booked grew 8% to 122.8 million, topping the view on Visible Alpha indicating 121.3 million. "After a slower start to the quarter, bookings accelerated steadily each month, returning to double-digit growth by the end of (the third quarter)," Airbnb said in a shareholder letter.
Gross booking value, which includes host earnings, service fees, cleaning fees, and taxes, jumped 10% annually to $20.1 billion, the company said. For the fourth quarter, Airbnb forecast revenue of $2.39 billion to $2.44 billion. The Capital IQ-polled consensus is for $2.42 billion. Its implied take rate -- defined as revenue divided by GBV -- in the key holiday period will be "slightly lower" annually, primarily due to the impact of unused gift cards in the fourth quarter of 2023, the company said.
The annual growth rate of nights and experiences booked in the ongoing three-month period is expected to be higher sequentially. "We are seeing strong demand trends in (the fourth quarter) across core and expansion markets for both long and short lead times," the company said. Airbnb forecast adjusted earnings before interest, taxes, depreciation, and amortization margin to fall year-over-year in the fourth quarter as marketing and product development expenses rise.
The 2024 adjusted EBITDA margin is now seen at about 35.5%, compared with the prior guidance of at least 35%. Revenue growth in the 2025 first quarter will be "negatively impacted" by the year-ago period's boost stemming from the timing of Easter and inclusion of leap day, Airbnb said. Price: 144.98, Change: -2.39, Percent Change: -1.62.