Airbnb shares drop 14% on earnings miss as company warns of slowing U.S. demand

Airbnb
shares
dropped
14%
in
after-hours
trading
after
the
company
reported
second-quarter
earnings
that
missed
analyst
expectations
and
warned
that
it’s
seeing
signs
of
slowing
demand
from
U.S.
customers.

Here’s
how
the
company
did
compared
to
LSEG
estimates
for
the
quarter
ended
June
30:

• 
  Earnings
  per
  share:
  86
  cents
  vs.
  92
  cents
  expected
• 
  Revenue:
  $2.75
  billion
  vs.
  $2.74
  billion
  expected

Revenue
increased
11%
year
over
year.
Airbnb
reported
a
net
income
of
$555
million,
or
86
cents
per
share,
down
15%
from
$650
million,
or
98
cents
per
share,
in
the
year-earlier
quarter.

The
vacation
rental
company
guided
to
third-quarter
revenue
of
$3.67
billion
to
$3.73
billion,
but
also
warned
that
it
expected
moderation
in
year-over-year
growth
in
its
key
“Nights
and
Experiences”
category,
relative
to
the
current
quarter.
It
also
cautioned
that
it
was
“seeing
shorter
booking
lead
times
globally
and
some
signs
of
slowing
demand
from
U.S.
guests.”

Airbnb
said
users
booked
125.1
million
Nights
and
Experiences,
its
highest
second-quarter
result.
“We
saw
continued
growth
across
all
regions
compared
to
Q2
2023,
with
Asia
Pacific
and
Latin
America
again
leading
the
way,”
it
said
in
its
letter
to
shareholders.

The
company
also
said
it
had
removed
more
than
200,000
low-quality
listings
since
it
launched
its
“quality
system”
more
than
a
year
ago.

Investors
are
carefully
watching
for
signs
to
see
if
the
consumer
is
under
pressure,
as
the
Federal
Reserve
has
held
off
on
rate
cuts
until
next
month
at
the
earliest.
There
have
been
some
troubling
signs
in
other
companies’
results.


McDonalds,
for
example,
warned
that
consumers
were
feeling
“the
pinch”
from
the
economy
in
its
most

recent
earnings
report,
which
saw
same-store
sales
fall
1%.