SAN FRANCISCO (AP) — Airbnb on Tuesday reported increases in profit and revenue as the short-term-rental giant continued to benefit from the rebound in travel.
The San Francisco-based company said it continues to see strong demand so far this year, “indicating that consumer confidence to travel remains high.”
Airbnb said Tuesday that it earned $319 million, or 48 cents per share, in the fourth quarter. That was up from $55 million a year earlier.
Spurred by an increase in nights booked and higher average rental rates excluding currency-rate effects, Airbnb revenue climbed 24% from a year earlier, to $1.9 billion.
The results beat Wall Street expectations. Analysts expected the company to earn 26 cents per share on revenue of $1.86 billion, according to a FactSet survey.
Airbnb’s shares were up 9% in after-market trading shortly after the results were posted. The stock has been surging: At Tuesday’s closing price, the shares had gained 41% this year, compared with an 8% rise in the Standard & Poor’s 500 index.
Cancellation rates remained above 2019 levels, but declined from last year, the company said.
Airbnb outperformed hotels when travel began to recover from pandemic-era lows, as some people seemed to prefer the relative isolation of staying in a house rather than a hotel. More recently, however, the company has run into complaints about high cleaning fees, which it promises to make more transparent when prices are displayed on its website and app.
The company has controlled costs. CEO Brian Chesky said on a call with analysts that its work force is 5% smaller than in 2019.
For the full year, Airbnb earned $1.89 billion on record revenue of $8.4 billion.
Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
