What drove ABNB's earnings beat in Q1 2024?

Airbnb's earnings beat in Q1 2024 was driven by several key factors:

1. **Strong International Travel Demand**: Airbnb expected its first-quarter revenue to exceed Wall Street estimates due to a boost from strong cross-border travel and longer-duration bookings. International travel demand is anticipated to remain robust, particularly to Asian and Latin American countries, as global air connectivity increases.
2. **Growth in Nights and Experiences Booked**: The company saw a 12% year-over-year increase in nights and experiences booked, reaching 98.8 million. This growth was driven by solid momentum across high-density urban areas and a continuous recovery in cross-border travel. Nights booked in China saw a nearly 90% year-over-year increase.
3. **Increase in Average Daily Rates**: There was a 3% rise in average daily rates, which contributed to the revenue growth. This was evident in both the Asia Pacific and Latin America regions, reflecting strong demand and pricing power in these markets.
4. **Gross Booking Value (GBV) Growth**: GBV, which measures the total value of bookings, grew by 15% year-over-year, reaching $15.5 billion. This increase was driven by robust demand across multiple regions and a 3% rise in GBV per night and experience booked.
5. **Strategic Investments in Under-Penetrated Markets**: Airbnb's focus on investing in expansion countries where it is under-penetrated is expected to drive growth for the remainder of the year. This strategy has proven effective in past performance.

In summary, Airbnb's earnings beat in Q1 2024 was primarily driven by strong international travel demand, particularly in Asia and Latin America, combined with longer-duration bookings and increased average daily rates. The company's strategic investments in under-penetrated markets and robust gross bookings also contributed significantly to the revenue outperformance.