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Investing.com -- Airbnb Inc (NASDAQ:ABNB) reported stronger-than-expected first-quarter earnings, but shares fell 4% in after-hours trading Tuesday after its second-quarter revenue outlook landed below Wall Street expectations. The home-rental platform guided Q2 revenue to a range of $2.99 billion to $3.05 billion, with the $3.02 billion midpoint just under the consensus of $3.03 billion.
Adjusted earnings per share were $0.24 for the quarter, edging out the $0.23 analyst estimate. Revenue increased 6% year-over-year to $2.27 billion, slightly exceeding the $2.26 billion forecast.
The company said Q2 growth would benefit around two percentage points from the earlier timing of Easter in 2024, aiding year-over-year comparisons. “In Q2 2025, we expect to generate revenue of $2.99 billion to $3.05 billion, representing year-over-year growth of 9% to 11%,” Airbnb said in its shareholder letter.
Despite the market reaction, Airbnb reaffirmed its full-year adjusted EBITDA margin guidance of at least 34.5%, underscoring confidence in its cost discipline. During the quarter, gross booking value rose 7% to $24.5 billion, with 143.1 million nights and experiences booked, up 8% from the prior year.
CEO Brian Chesky said the quarter reflects a focus on long-term growth and innovation. “As we’ve shared in recent quarters, we’re focused on driving long-term growth and preparing for Airbnb’s next chapter—where we’ll offer more than a place to stay.”
That next chapter may take shape soon. The company is scheduled to introduce new offerings beyond accommodations on May 13, signaling its aim to evolve into a broader travel platform.
In recent quarters, Airbnb has leaned on platform upgrades and host tools to scale efficiently. Initiatives like the Cohost Network and mobile optimization have deepened customer engagement, with mobile now accounting for 60% of bookings.
The company’s deliberate, and at times conservative, guidance has consistently tempered investor sentiment, even as its stock gained more than 20% year-to-date. Ongoing macroeconomic headwinds, including FX pressures, have led Airbnb to chart a cautious path despite broad travel recovery.
Still, with high free cash flow margins and measured investments in new business verticals, the company remains positioned for longer-term growth, even if near-term momentum appears tempered.