Airbnb Inc - Class A

Airbnb delivered a decisive beat in Q3 2023, posting earnings per share of $6.63 against a consensus estimate of $1.96, a 238.27% positive surprise, while revenue of $3.40 billion topped the $3.18 billion estimate by 6.88% and grew 17.8% year-over-year. The headline EPS figure was heavily influenced by a $2.80 billion one-time, non-cash tax benefit from the release of a valuation allowance on deferred tax assets; stripping that out, adjusted net income of $1.60 billion still reflected meaningful operational progress, supported by 113.2 million Nights and Experiences Booked, up 14% year-over-year. Adjusted EBITDA reached $1.83 billion, expanding margin to 54% from 51% a year ago, as expense discipline across most cost categories allowed revenue growth to fall through to the bottom line. With rival travel platforms also reporting robust demand, particularly in Asia-Pacific and Latin America, the broader travel environment remained a tailwind. Looking ahead, management guided Q4 revenue of $2.13 billion to $2.17 billion, implying 12-14% growth, while targeting full-year adjusted EBITDA margin roughly 150 basis points above 2022 levels.