Airbnb expects holiday-quarter bookings to moderate; shares fall

(Reuters) - Airbnb Inc has forecast quarterly revenue that may not live up to market expectations, saying a strong dollar is starting to put pressure on its business and bookings will decline, sending its shares down 7% after the bell.

The San Francisco-based vacation rental company reported earnings and revenue that beat estimates in the third quarter.

But growth slowed to 29% in the July-September period, down from 58% in the second quarter and 67% a year earlier when people began traveling for revenge as COVID-19 cases declined and people who had been working remotely locked up for longer. Remains.

Airbnb said in a letter to shareholders on Tuesday that it expects to continue the recovery, albeit sporadic, of cross-border travel as overall conditions persist.

“This is kind of a tough company year after year,” Chief Financial Officer David Stevenson said on the post-earnings call.

“If you go back and compare to 2019, we see stabilization with increased demand worldwide.”

The travel industry has seen a major revival this year on the back of the best summer travel season in three years, but it faces risks from the global rise in inflation.

Airbnb shares have fallen by more than a third this year, versus a nearly 19% drop in the broader market (.SPX).

CEO Brian Chesky sought to allay concerns about the call, saying the company expects “really strong demand” next year, particularly from US travelers heading to Europe.

Airbnb’s fourth-quarter revenue led between $1.80 billion and $1.88 billion, versus analyst expectations of $1.85 billion, according to Refinitiv.

The company recorded its highest bookings in the third quarter, with nearly 100 million nights and experiences booked. Average daily prices are up 5% year over year to $156.

The company, which generates half of its revenue from listings outside the United States, said rates were much higher excluding the impact of foreign currency fluctuations.

Major US airlines have pointed to the rise in international flights, especially to Europe, as travelers have taken advantage of the rising dollar. However, Airbnb said the majority of travelers in North America and Europe booked local stays.

(Reporting by Aishwarya Nair in Bengaluru); Editing by Devika Siamnath, Sayantani Ghosh and Leslie Adler

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