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On Friday, JMP Securities analyst maintained a Market Perform rating on Airbnb Inc . (NASDAQ:ABNB) following the company’s first-quarter earnings report for 2025. With an impressive InvestingPro Financial Health Score of 3.19 (rated "GREAT"), Airbnb’s revenue met expectations, while its adjusted EBITDA surpassed consensus. The company’s guidance for the second quarter of 2025 was generally in line with analyst projections, though the forecast for nights and experiences booked was slightly below anticipations. Nonetheless, the adjusted EBITDA outlook was modestly above expectations, supported by the company’s strong revenue growth of nearly 12% over the last twelve months.
Airbnb’s management has upheld its adjusted EBITDA margin floor at 34.5% for the entire year. According to InvestingPro data, the company maintains exceptional gross profit margins of 83% and holds more cash than debt on its balance sheet, demonstrating strong financial discipline. The company’s executives provided commentary indicating steady booking trends and consistent lead times, despite some signs of weakness in the U.S. market, particularly regarding longer-lead-time bookings and foreign inbound travel. The travel industry, faced with macroeconomic uncertainties, has seen Airbnb maintain a strong position, attributed to the robustness of its core business.
Looking ahead, Airbnb is planning new business launches set for 2025 and beyond, which are expected to contribute to revenue growth over time. However, these initiatives may initially impact profit margins. JMP analysts highlighted Airbnb’s dominance in the industry and its capability to weather macroeconomic fluctuations. They also noted the potential benefit to Airbnb from a consumer trend towards more local or regional travel, which could be seen as a cost-effective alternative for travelers.
Despite these positive aspects, analysts at JMP Securities did not find the first-quarter results or the forward guidance to significantly alter their investment thesis. They observed that Airbnb’s shares are trading at approximately 15 times the enterprise value to estimated 2026 EBITDA. Current InvestingPro analysis suggests the stock is slightly undervalued, with analyst price targets ranging from $95 to $200. The Market Perform rating was reiterated, suggesting that Airbnb’s stock is expected to perform in line with the broader market. For deeper insights into Airbnb’s valuation and 10+ additional ProTips, including detailed financial analysis and future growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Airbnb reported its financial results for the first quarter of 2025, surpassing earnings expectations. The company’s adjusted earnings per share reached $0.24, slightly above the forecast of $0.23, while revenue came in at $2.3 billion, exceeding the anticipated $2.26 billion. Despite these positive results, Airbnb’s stock experienced a decline in after-hours trading. The company has been focusing on international expansion and core service improvements, with a significant product launch planned for May 13. Additionally, Airbnb repurchased $807 million in stock during the quarter. The firm has also introduced an AI customer service agent, which has seen a 50% adoption rate among U.S. users. Looking ahead, Airbnb provided Q2 revenue guidance of $2.99 billion to $3.05 billion, projecting 9-11% growth. The company aims for a full-year adjusted EBITDA margin of at least 34.5% and plans to invest $200-$250 million in new business launches.
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