Airbnb (ABNB) reported solid financial results on Tuesday, meeting analysts' expectations on revenue and slightly beating them on earnings per share. However, the company missed expectations on nights and "experiences" booked.
Shares were down 5% in after-market trading after the news.
Here's what Airbnb reported today, as compared to Wall Street's expectations:
Revenue: $2.1 billion actual versus $2.1 billion expected
Adjusted EPS: $0.56 actual versus $0.51 expected
Nights and experiences booked: 103.7 million actual versus 106.1 million expected
Inflation has roiled some of tech's tried-and-true names, facilitating layoffs and hiring freezes across the sector. Nevertheless, many tech companies have posted decent financial results this earnings season.
Additionally, there's reason to believe that travel-centric names are set up to fare better than some of their counterparts. For example, Uber (UBER) yesterday reported that it was positive cash flow for the first time, which the company partially attributed to travel volume.
Though the nights and experiences booked metric was a miss, the figure's still up from 102.1 million in Q1 2022.
Airbnb also announced a $2 billion share buyback to express confidence in the future and support the company's long-term growth, a statement said.
Shares of Airbnb are down about 35% year-to-date as of open this morning.
Airbnb log at Mobile World Congress (MWC), in Barcelona, Spain, on March 01 2022. (Photo by Joan Cros/NurPhoto via Getty Images)Inflation's surging, but so is travelThe U.S. has been seeing inflation hit historic levels, and the Fed's taken action, raising rates yet again in recent weeks. Democrats have also proposed the Inflation Reduction Act, which could set up the average American household to save $1,800 in energy costs, according to one analysis.
Simultaneously, travel is having a moment, albeit a complicated one. After two years of the pandemic, travel agents are reporting that they're overwhelmed not only by the number of customers they've had reaching out, but by how complicated COVID-19-related regulations have become. Still, companies like Marriott (MAR) have beat analysts' estimates this quarter on just how much travel demand has recovered.
We'll see, but if inflation continues spiking, it could affect this travel boom.
Allie Garfinkle is a senior tech reporter at Yahoo Finance. Find her on twitter the latest financial and business news from Yahoo Finance.
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