(Reuters) – Airbnb Inc’s first-quarter revenue beat estimates by a small margin, helped by steady travel demand in the face of macroeconomic worries and a recovery in the Asia-Pacific region.
The San Francisco-based vacation rental company, one of the top pandemic beneficiaries, joined other travel companies in reporting bookings that signal travel demand has not waned amid recession fears and shrinking consumer spending.
Airbnb said on Tuesday it saw the highest number of active bookers in the quarter, during which gross bookings rose 19% to $20.4 billion, above analysts’ expectation of $19.67 billion, per Refinitiv data.
Revenue rose about 20% to $1.82 billion from a year earlier, compared with the average analyst estimate of $1.8 billion.
“We were particularly encouraged by the continued recovery of Asia Pacific as nights booked in Q1 2023 increased over 40% year-over-year,” Airbnb said in a statement.
Last week, Airbnb said it will allow guests to break payments into installments, in a bid to cater to budget-conscious travelers. The company said earlier this year that average daily rates (ADRs) will remain pressured as vacationers return to lower-cost urban rentals.
The company’s first-quarter average daily rates (ADRs) remained flat at $168 compared with a year earlier.
“We anticipate a slightly lower ADR in Q2 (versus last year) driven by mix shifts and the introduction of new Host pricing tools as part of our 2023 Summer Release,” Airbnb said.
It forecast second-quarter revenue between $2.35 billion and $2.45 billion, largely in line with analysts’ expectations.
The company also said gross bookings would slow in the second quarter after it recorded high growth rate last year due to pent-up travel demand.
Airbnb reported a net income of $117 million in the three months ended March, compared with a net loss of $19 million a year earlier. It was the company’s first profitable quarter on a GAAP basis.
(Reporting by Priyamvada C in Bengaluru; Editing by Shinjini Ganguli)
