Airbnb Q1 Results: Will weak Airbnb bookings pull share prices lower?

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Airbnb Q1FY23 highlights

Airbnb Q1 results: Key insights

  • Airbnb expects fewer bookings and lower average daily rates in the quarter ending June.
  • Airbnb’s first-quarter average daily rates (ADRs) remained flat at $168 compared with a year earlier
  • Airbnb gross booking value increased 19% to $20.4 billion for the quarter ending March. 
  • Airbnb planned to implement new marketing campaigns to attract cost-conscious travelers ahead of the peak summer season.
  • Airbnb declared no dividend during the quarter. 

Airbnb share price and Airbnb results:

Airbnb shares tumbled 14% in pre-market trading on May 10, 2023 following the poor bookings and revenue outlook for the upcoming quarter. 

Rising cost pressures along with recession fears seem to be forcing people to keep expenses at a minimum, which in turn are pushing consumers to seek cheaper accommodation. 

Airbnb in an earnings release also mentioned that it witnessed highest bookings demand for cheap listed accommodations on its application.

Airbnb share historical performance: 

1 Day1 Month1 Year5 Years

(Data as on May 9, 2023)

Decoding Airbnb Q1 earnings:

Airbnb Revenue

Airbnb reported a revenue of $1.8 billion, a 20% increase from the corresponding quarter the previous year, supported by post-pandemic travel demand. 

Airbnb Profits

Airbnb Q1 profit reported its best profit growth on record, a 480% jump in profit to $319 million primarily due to our revenue growth and expense discipline. 

Net Profit$117 million$-19 million715%

 Airbnb dividend

There was no dividend released.

Airbnb bookings growth 

During the January-March 2023 period, nights and Experiences Booked increased 19% compared to the prior year, driven by growth in all regions.

Airbnb listings growth

Total active listings grew 18% compared to the same prior year period, up from 16% in Q4 2022. 

Airbnb share price target

  • Brokerage JP Morgan cut its share price target to $110 from $135.
  • Renowned brokerage DA Davidson cut the share target price to $140 from $145.
  • Brokerage Credit Suisse cut its share price target to $150 from $160.
  • Brokerage Jefferies cut its share price target to $140 from $155. 

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.