2min read Airbnb Inc. (ABNB) reported strong financial Q3 results, driven by a robust travel demand and a favorable foreign exchange rate (FX) tailwind. The company's revenue increased by 18% year-over-year (y/y) to $3.4 billion, surpassing the estimated $3.37 billion. The gross booking value also grew by 17% y/y to $18.3 billion, exceeding the estimated $17.91 billion, while the adjusted EBITDA reached $1.8 billion, a 26% increase from the previous year, with an adjusted EBITDA margin of 54%. Airbnb's gross booking value witnessed a 17% year-over-year increase to reach $18.3 billion, surpassing the estimated value of $17.91 billion. This signifies the strong demand for accommodations and experiences offered by the platform. Airbnb reported a significant increase in earnings per share (EPS), which reached $6.63 compared to $1.79 in the same quarter last year. This surge in EPS can be attributed to revenue growth, expense discipline, and interest income. The impressive Q3 performance was supported by a one-time income tax benefit of $2.8 billion from the release of a valuation allowance (VA) on certain deferred tax assets. Excluding this one-time item, the adjusted net income for the quarter was $1.6 billion, compared to $1.2 billion in Q3 2022. Net income margin was 129%, while the adjusted net income margin was 47%, significantly higher than the 42% net income margin during Q3 2022. The company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at $1.83 billion, reflecting a 26% growth compared to Q3 2022. The adjusted EBITDA margin was reported at 54%, surpassing the estimated value of 51.8%. The number of nights and experiences booked on Airbnb exceeded 113.2 million during Q3, reflecting a 14% year-over-year increase and an acceleration compared to the previous quarter. The company's mobile app also witnessed strong performance, accounting for 53% of gross nights booked compared to 48% in Q3 2022. International expansion markets are showing positive momentum, with cross-border nights booked growing by 17% in Q3 2023 compared to the previous year. Airbnb is gaining traction in under-penetrated markets, with strong growth in the Asia Pacific region. China's outbound travel increased by over 100% in Q3 2023, and smaller markets such as Taiwan, the Philippines, Thailand, Hong Kong, and Indonesia experienced year-over-year growth above 30% for gross nights booked. Additionally, there has been a return of guests to cities, with high-density urban nights booked increasing by 15% compared to Q3 2022. Airbnb has also made noteworthy progress in terms of its inventory. The platform added nearly 1 million active listings throughout the year, expanding its offerings and attracting a larger customer base. Looking ahead to the fourth quarter of 2023, Airbnb forecasts revenue to be in the range of $2.13 billion to $2.17 billion, slightly below the estimated $2.18 billion. Despite the predicted growth, the company is facing increased competition and regulatory challenges, which may impact its future performance. In summary, Airbnb demonstrated remarkable performance in Q3 2023, surpassing revenue estimates and experiencing growth in key financial indicators. The company's focus on cost management and expansion into under-penetrated markets has contributed to its success. With an increasing number of nights and experiences booked and positive trends in international markets, Airbnb remains well-positioned for continued growth in the travel and accommodation industry.
