Airbnb Set to Report Q3 Earnings: Buy, Sell or Hold the Stock?
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Airbnb ABNB is set to report its third-quarter 2024 results on Nov. 7.
ABNB expects third-quarter 2024 revenues between $3.67 billion and $3.73 billion, implying year-over-year growth of 8-10% on a reported basis.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $3.72 billion, indicating growth of 9.58% year over year.
The consensus mark for earnings is currently pegged at $2.17 per share, down by a penny over the past 30 days. The figure indicates a 9.21% decrease from the year-ago quarter’s reported figure.
ABNB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the earnings surprise being 25.02%, on average.
Airbnb, Inc. Price and EPS Surprise
Airbnb, Inc. price-eps-surprise | Airbnb, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider for ABNB’s Q3 Earnings
Airbnb is riding on its strong core business, strategic investments and expanding global footprint. Solid momentum in its marketplace, which connects hosts and guests online, and strong listings on its platform are helping it grow in urban and non-urban areas. It is worth mentioning that Airbnb has more than 7.7 million listings on its platform across 100,000 cities in almost every country and region globally. These factors are expected to have driven its third-quarter 2024 results.
Growing traction across non-urban areas and increasing demand for urban and cross-border travel are expected to have driven growth in its gross nights booked. The Zacks Consensus Estimate for Nights and Experiences Booked is pegged at 126 million, indicating a year-over-year increase of 9.6%.
ABNB’s strong efforts to strengthen its core services on the back of new features and upgrades are expected to have been other positives. A new feature called Guest Favorites, which is a collection of the most-loved homes on Airbnb based on ratings, reviews and reliability data, is expected to have driven momentum among various guests.
The introduction of a label feature to rank the top-listed properties of the company with a badge is noteworthy. It allows customers to see the top 25% and top 1% properties on the listing page, enabling them to choose wisely among a wide range of properties.
These features are expected to have contributed well to the gross booking value (GBV) in the third quarter. The Zacks Consensus Estimate for GBV is pegged at $21.3 billion, indicating growth of 11.5% from the reported figure in the year-ago quarter.
Airbnb’s initiative to expand use cases and support various kinds of services is likely to have driven its momentum among various hosts worldwide.