Airbnb (ABNB) Q3 2023 Earnings
How Did ABNB Stock React to Q3 2023 Earnings?
S&P 500 over the same 30 days: +6.00%.
Did ABNB Beat Earnings? Q3 2023 Results
Yes. Airbnb reported Q3 2023 earnings of $6.63 a share on Nov 1, 2023, beating the $1.96 consensus estimate by 238.3%. Revenue was $3.4B against a $3.2B estimate.
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.
- Strong travel demand with 113.2 million Nights and Experiences Booked, up 14% YoY
- Active listings grew 19% YoY with over 7 million active listings
- Gross Booking Value of $18.3 billion, up 17% YoY
- ADR of $161, up 3% YoY
- Expense discipline with all operating expenses (ex-SBC) growing slower than revenue except G&A
- Interest income of $192 million, up from $59 million in Q3 2022
- FX tailwind contributed approximately 4 percentage points to revenue growth
- Cross-border nights booked grew 17% YoY
- App bookings increased to 53% of gross nights booked from 48% in Q3 2022
What Was Airbnb's Outlook in Q3 2023?
For Q4 2023, Airbnb expects revenue of $2.13 billion to $2.17 billion, representing 12-14% year-over-year growth, which is relatively stable compared to Q3 2023 on an ex-FX basis. The implied take rate in Q4 2023 is expected to be slightly higher than Q4 2022. Nights booked growth in Q4 is expected to moderate relative to Q3, while ADR is expected to be stable to slightly up year-over-year. Management is closely monitoring macroeconomic trends and geopolitical conflicts that may impact travel demand, noting greater volatility early in Q4. The company expects a record-high Q4 Adjusted EBITDA on a nominal basis, with Q4 Adjusted EBITDA margin exceeding Q4 2022. Full-year 2023 Adjusted EBITDA margin is expected to be approximately 150 basis points higher than full-year 2022. Stock-based compensation expense for full-year 2023 is expected to be approximately 20% higher than 2022, with a similar growth rate anticipated for 2024.
ABNB YoY Financials
| Metric | Q3 2023 | Q3 2022 | Year over year |
|---|---|---|---|
| Revenue | $3.4B | $2.9B | +17.8% |
| Gross Profit | $2.9B | $2.5B | +18.3% |
| Operating Income | $1.5B | $1.2B | +24.4% |
| Net Income | $4.4B | $1.2B | +260.3% |
Figures from SEC filings and company reports. Not investment advice.