Airbnb, Inc. (ABNB) – Get Report posted greater-than-anticipated fourth-quarter revenue immediately after the bell on Thursday as the vacation rentals firm noted its very first success due to the fact going public in December.
Airbnb said profits in the quarter fell 22%, to $859 million. It noted a decline of $3.9 billion which includes a “$2.8 billion non-hard cash stock-based mostly compensation expense” relevant to its IPO.
The firm said it misplaced an altered $21 million before curiosity, taxes, depreciation and amortization.
The company experienced been predicted to report a decline of $670.2 million, or $8.40 a share, on sales of $747 million, based mostly on a FactSet study of 22 analysts.
It was the initial monetary report for the business considering that it went general public in December at $68 a share. The stock has surged in the intervening weeks, investing as large as $219.94.
On Thursday, in advance of the report, shares fell sharply, declining $18.14, or 9%, to $182.06. The stock edged higher in right after-hrs buying and selling.
“We are making ready for the travel rebound,” the enterprise claimed in a shareholder letter posted soon after the close. “As the vaccine is rolled out and limitations elevate, we anticipate there will be a sizeable travel rebound.”
Heading into earnings, analysts mentioned that Airbnb is better positioned than other vacation businesses this kind of as Expedia (EXPE) – Get Report, which a short while ago described a far sharper profits decline for the fourth quarter. “Airbnb has capitalized on improved getaway rental consumer need and is outperforming its peers,” explained Alisha Kapur, a vacation marketplace marketing consultant at SimilarWeb, in emailed remarks. “More importantly, the start of 2021 has proved that Airbnb is poised for a stronger restoration than just about any other journey brand name,” Kapur included.
“For revenue, the calendar year-about-yr decline in Q1 2021 is envisioned to be less than that of Q4 2020, as we proceed to see gradual improvements in guests’ willingness to e-book stays,” the enterprise said.