Investing.com -- Airbnb swung to a profit in the first quarter of the year, driven by strong travel demand, though cautioned that growth in the second quarter will be kept in check by tough comparisons following the pandemic-fueled demand seen last year.
Airbnb Inc (NASDAQ:ABNB) shares were down more than 9% in after-hours trading.
The company reported EPS of 18 cents on revenue of $1.8 billion, compared with Wall Street estimates for EPS of 20 cents on revenue of $1.79B. The company reported a loss of $0.03 in the same period a year earlier.
The return to profit in Q1 was driven by strength in it bookings for nights and experiences, which was up 19% in Q1 compared to the same period last year, supporting a 19% jump in gross booking value, a key performance metric, to $20.4B.
"Nights and Experiences booked hit a record high with over 120 million," the company said.
Looking ahead to Q2, the company guided revenue in a range of $2.35B to $2.45B, in line with Wall Street estimates for $2.42B, but also struck a cautious tone.
Nights and experiences booked year-over-year growth in Q2 2023 is expected to be "lower than our revenue growth during the quarter," the company said.
"Nights and Experiences Booked will have unfavorable year-over-year comparisons in Q2 2023 as we overlap pent-up 2022 demand following the COVID Omicron variant," it added.
The company also announced a new share buyback program of up to $2.5B.