Airbnb stock falls on weak Q2 outlook despite Q1 beat

Shares of Airbnb (ABNB) are trading lower despite the company beating estimates in its first quarter results. Airbnb posted revenue of $2.14 billion, surpassing analyst estimates of $2.06 billion. On adjusted earnings per share, the company reported $0.41 a share, topping Wall Street expectations of $0.30 per share. However, the company's second quarter revenue outlook fell short of estimates, weighing on shares.

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This post was written by Angel Smith

Video Transcript

Let's get to Air B and B.That company also is reporting its numbers here and here.We've got a first quarter beat, but a second quarter forecast shortfall, so that's likely why we're seeing those shares down by more than 5% here.So let me run through the numbers for you here on the company coming out with revenue that rose 18% to $2.14 billion.That's above estimates for $2.06 billion a just bang in line with estimates $424 million and gross booking value at $22.9 billion.Ahead of the average analysts, However, the second quarter outlook is for revenue of 2.68 to $2.74 billion.Indeed, the upper end of that is what analysts had been looking for.The company is blaming the timing of Easter and some other holidays like the leap year as responsible office.Also, some effects currency effects perhaps happening there.The company says the third quarter will see an acceleration so things should get better here, but also saying in the second quarter that adjusted Ida will be flat to up versus last year, just for context.Last year, adjusted IDA in the in the current quarter was $819 million.Analysts this year were looking for about $918 million.So flat to up is sort of vague.And we don't know if flat to up means that they could be here.Anything else stand out to you.It's they're trying to.It's almost as if they kind of they they were recognising that, you know, this this revenue growth in Q two they were offering wasn't gonna quite do it.So they do offer you some caveats here, Julie.Like you said and sort of Well, we're getting hit by They're throwing Easter holiday out there and Le and and the leap Day they mentioned FX to your point.They do try to kind of put this positive spin on it going forward and they talk about Well, hey, you know, as summer travel picks up, we we like what we're seeing.They call it robust demand in their words, um, and to your, you know, revenue growth accelerating.But that, at least initially in the after hours, is not giving investors a tonne of comfort.Yeah, it's so interesting, Steve, because you've got Airbnb.On the one hand, you have Disney with the parks not doing as well as expected.You have cruise lines that have been going like bank gangbusters.You have the airlines.I mean, it's the travel picture is a little confusing, is what I'm trying to say.It's very confusing, but you know it's But this is the thing with travel is it's it's it's mixed, you know, I, I think we got we had this huge burst of pent up travel demand, right?We we all had this time where we weren't travelling, and now we are, and and And But now that may be peering out.People may be getting a bit more selective.Um, you know, I, I tend not to be a big Airbnb user, uh, vis a vis hotels.But, um, you know, because you I I you know what I like when someone else cleans up after me.I don't wanna have for cleaning up after myself is really the bottom line, but but, you know, but so people are just sort of choosing their experiences as they go I think the cruise lines are probably doing a little bit better because, you know, they they were sort of, you know, many people sort of viewed them as a little floaty as large floating Petri dishes.I don't think you have that anymore.Um, Disney, I think.You know, at some point the parks get very expensive.And as a family, you know, you you know, how often can you go to that?Well, so there's that's where all these little mixed nuances come in.