Airbnb (ABNB) earnings Q2 2021

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Airbnb CEO Brian Chesky attends the Cannes Lions on June 20, 2016 in Cannes, France.

Richard Bord | Getty Images

Airbnb’s stock fell more than 4% Thursday after the company announced its earnings for the second quarter. The company exceeded Wall Street’s expectations in terms of sales and bookings, but warned of the expected volatility of the Covid Delta variant.

This is how the company did it:

  • Merits: Loss of 11 cents per share
  • Revenue: $ 1.34 billion versus $ 1.26 billion forecast from Refinitiv

The company reported 83.1 million room nights and experiences booked, up 29% from the first quarter and a whopping 197% year over year after the travel industry collapsed a year ago in the wake of the Covid-19 pandemic. Analysts surveyed by StreetAccount had expected 79.2 million booked nights and experiences.

Revenue was $ 1.34 billion, an increase of nearly 300% over the previous year.

Airbnb’s sales and marketing expenses increased 175% year over year to $ 315 million in the second quarter. The company attributed the increase in marketing expenses to the “Made Possible by Hosts” campaign. Airbnb warned in February that sales and marketing spending as a percentage of revenue would be higher in the first half of 2021 than in the second half.

Gross Booking Value, Airbnb’s method of tracking host earnings, service fees, cleaning fees, and taxes was $ 13.4 billion, up 320% year over year and above the FactSet consensus of 11.56 Billion dollars.

Airbnb’s net loss decreased to $ 68 million for the quarter, down more than 88% from a net loss of $ 575.6 million last year.

The average daily rate rose to $ 161 from $ 160 in the previous quarter, reflecting an increase in customer spending on homes and experiences. That number is up 41% year over year.

In its letter to shareholders, the company warned against preparing for volatility as a result of the Covid-19 Delta variant. Airbnb anticipates that Delta will have an impact on travel behavior, particularly in terms of the frequency and timing of guests booking and canceling.

Despite Delta, however, the company expects the third quarter to have its strongest quarterly revenue ever. Airbnb also expects the third quarter to deliver the highest Adjusted EBITDA dollar and margin ever.

The company said vaccination progress and the containment of new variants will be variables that will affect the company’s fourth quarter performance.

“We do not yet know how high the willingness to travel will be in autumn compared to summer,” said a letter to shareholders.

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