Airbnb posts $1.2 billion Q3 profit as revenue jumps 29%

Airbnb posts $1.2 billion Q3 profit as revenue jumps 29%
Airbnb posts $1.2 billion Q3 profit as revenue jumps 29%

The founder of Circle Squared Alternative Investments explains why the travel booking company’s second quarter earnings report is so important to “Varney & Co.”

Airbnb reported record third-quarter profit of $1.21 billion as bookings and average daily rates rose, and the company said on Tuesday demand for short-term rentals remained strong despite economic uncertainty .

However, earnings were still below Wall Street expectations and the company said booking growth would slow in the fourth quarter, while average daily rates would also come under pressure.

SPAIN – 2021/04/15: In this photo illustration the Airbnb app displayed on a smartphone screen with the Airbnb website displayed on a laptop computer in the background. (Photo Illustration by Thiago Prudencio/SOPA Images/LightRocket via Getty Images) (Thiago Prudencio/SOPA Images/LightRocket via Getty Images/Getty Images)

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Airbnb shares fell 4% in extended trading.

Teleprinter Security Last To change To change %
ABNB AIRBNB INC. 109.05 +2.14 +2.00%

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Third-quarter profit, compared with $834 million in the same quarter last year, was $1.22 per share. Analysts were expecting $1.47 per share, according to a FactSet survey.

Revenue jumped 29% from a year earlier to $2.88 billion, slightly above analysts’ forecast of $2.85 billion.

Airbnb is a popular choice for many travelers, but as inflation continues, many investors fear travel will suffer, and so will Airbnb.

Airbnb shares have fallen nearly a third this year despite the travel recovery, a highly profitable first half and continued upbeat comments from CEO Brian Chesky and other business leaders.

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Most of the share price decline has occurred since early May. Investors fear that rising prices for basic commodities, including housing, food and gasoline – as well as fear of recession – will push consumers to cut back on discretionary spending like travel.

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. Airbnb records profit billion dollars quarter so its revenue jump

. Airbnb posts billion profit revenue jumps

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