Airbnb Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.15%.
Did ABNB Beat Earnings? Q1 2025 Results
Airbnb opened 2025 on firm footing, posting first-quarter results that edged past Wall Street expectations on both the top and bottom lines despite a handful of structural headwinds. Revenue grew 6.1% year-over-year to $2.27 billion, nudging past the $2.26 billion consensus, while adjusted EPS came in at $0.24, topping the $0.23 estimate by 2.96%. The headline growth figure understates the underlying momentum; calendar effects from Easter timing and the prior year's Leap Day shaved roughly three percentage points off reported revenue growth, and on a constant-currency basis excluding those factors, growth would have clocked in at 11%. Nights and Experiences Booked climbed 8% to 143.1 million, and free cash flow reached a commanding $1.78 billion. Net income, however, fell to $154 million from $264 million a year ago, pressured by higher stock-based compensation and investment write-downs. Looking ahead, Airbnb guided second-quarter revenue to $2.99 billion to $3.05 billion, representing 9% to 11% growth, and is preparing to unveil an expansion into entirely new service categories, including bookable chefs and personal trainers, that management is billing as its most significant strategic pivot since the pandemic.
- Nights and Experiences Booked grew 8% year-over-year to 143.1 million
- App bookings increased 17% year-over-year, accounting for 58% of total nights booked (up from 54%)
- Excluding North America, Nights and Experiences Booked grew 11% year-over-year
- Expansion markets average growth rate was more than twice that of core markets in Q1 2025
- Active listings continued to grow approximately in-line with Nights and Experiences Booked
- Cross-currency booking service fee introduced in Q2 2024 contributing to take rate
- Gross Booking Value of $24.5 billion, up 7% year-over-year (9% ex-FX)
“We had a strong start to 2025. In Q1, guests spent nearly $25 billion on Airbnb. Our results show that no matter what's happening in the world, people continue to choose Airbnb. That's because our model is inherently adaptable.”
Airbnb CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Airbnb expects revenue of $2.99 billion to $3.05 billion, representing 9% to 11% year-over-year growth, which includes an approximately two percentage point benefit from Easter timing. Nights and Experiences Booked growth is expected to moderate relative to Q1 2025, with ADR approximately flat year-over-year. U.S. demand has been relatively softer due to broader economic uncertainties, while Latin America remains the fastest-growing region. Q2 Adjusted EBITDA is expected to increase year-over-year, but margin may be flat to down slightly as marketing expense grows faster than revenue due to the Summer Release and new growth initiatives. For full-year 2025, Airbnb reaffirms Adjusted EBITDA Margin guidance of at least 34.5%, with $200 million to $250 million planned for launching and scaling new businesses to be introduced on May 13. The impact on Adjusted EBITDA Margin from these investments is expected to be most pronounced in the second half of the year.
ABNB YoY Financials
Figures from SEC filings and company reports. Not investment advice.