Airbnb stock gained late Wednesday after the company reported second quarter results that beat expectations. The online vacation-rental booking firm said travel demand picked up after the spring.
Airbnb said that it earned $1.03 per share for the June-ended quarter, up 99% from a year earlier. That beat the 94 cents per share that analysts polled by FactSet forecast. Sales increased 13% to $3.1 billion, compared to analyst estimates of $3.03 billion.
The gross value of bookings on Airbnb's platform increased 11% to $23.5 billion. Analysts were projecting the company would post gross bookings of $22.67 billion.
"Despite global economic uncertainty early in the quarter, travel demand picked up, and nights booked on Airbnb accelerated from April to July," Airbnb said in its Q2 investor letter.
Revenue growth accelerated from the 6% rate Airbnb posted in Q1.
For the current quarter, Airbnb guided for sales of $4.06 billion. Prior to the company posting its results, analysts were projecting $4.05 billion in Q3 sales for Airbnb.
"As we look ahead to Q3, we're encouraged by current demand trends," Airbnb's investor letter said. "That said, we expect a tougher year-over-year comparison toward the end of the quarter. This dynamic will continue into Q4, putting pressure on growth rates later in the year."
On the stock market today, Airbnb stock is up a fraction at 130.93 in after-hours trading.
Airbnb Stock Flat Year-To-Date
Prior to earnings, Airbnb stock gained a half-percent in regular trading. Shares are down just under 1% year-to-date. Airbnb stock has struggled amid concerns about the U.S. travel market, particularly from international visitors.
Airbnb earlier this year announced an expansion into travel experience booking, along with expanded services for some of the properties on its platform.
Coming into the report, Airbnb stock had an IBD Composite Rating of 64 out a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
