Shares of Airbnb (ABNB) are down 17% after the short-term rental and homestay company reported second-quarter earnings that missed Wall Street’s target and warned of slowing demand in the U.S.
The San Francisco-based company reported earnings per share (EPS) of $0.86 U.S., which was below the consensus forecast of $0.92 U.S. among analysts.
Revenue of $2.75 billion U.S. slightly beat estimates of $2.74 billion U.S. Sales were up 11% from a year earlier.
On an earnings call, management said the company had a relatively strong quarter, noting that users booked 125 million “nights and experiences,” its highest second-quarter result ever.
The company also said that it removed more than 200,000 low-quality rental listings since it launched a “quality system” last year.
In terms of guidance, Airbnb said that it expects revenue of $3.67 billion U.S. to $3.73 billion U.S. in the current third quarter.
However, the company also warned that it anticipates some moderation in its year-over-year growth in its “nights and experiences” booking category.
Executives also cautioned that they are seeing “…some signs of slowing demand from U.S. guests.”
Investors are carefully watching for signs that consumers are pulling back on spending amid mounting evidence that the U.S. economy is slowing.
Prior to today (Aug. 7), the stock of Airbnb had declined 9% over the past 12 months and was trading at $130.47 U.S. per share.
Tech Insider
