Airbnb Inc. announced strong third-quarter results, with revenue exceeding Wall Street expectations. Despite this, shares fell by 4% amid broader market uncertainties.
Airbnb reported Q3 revenue of $2.2 billion, beating estimates of $2.03 billion. This was a marked increase from $1.34 billion recorded in the same period last year. The surge has been attributed to the uptick in travel as more places around the world ease COVID-19 restrictions.
The number of nights and experiences booked on the platform also surpassed expectations, coming in at 83.1 million versus the anticipated 79.2 million. Their customer base has shown a significant increase, which was reflected in the 280.8 million nights or experiences booked in the last nine months, a year-on-year rise of 29%.
However, the bullish earnings report didn’t impress investors, leading to a 4% drop in the shares of Airbnb. Likely, the stock slip is connected to the general market selloff amid inflation worries and rising bond yields.
Overall, while Airbnb’s top-line results were strong, and the company has shown remarkable resiliency despite the ongoing pandemic, investors remain cautious due to the broader economic environment.
