Airbnb Q2 earnings 2022: Airbnb share price tank despite strong quarterly results
Airbnb, Air Bed and Breakfast, reported its Q2 earnings on Tuesday. The firm reported stronger-than-expected earnings and revenue in line with estimates. The share price of Airbnb fell post the earnings announcement but recovered later. On Wednesday, Airbnb stock closed 1.13% lower at $115.02 per share. In 2022, the Airbnb share has fallen more than 30%.
Below are key highlights from Airbnb's Q2 earnings:
- Revenue: $2.1 billion, up 58% year-on-year
- Net Income: Net profit of $379million
- Booking numbers: 103 million nights and experiences booked
Let us look at Airbnb's Q2 numbers in detail:
Airbnb Q2 Earnings: Revenue in line with an estimate
The company reported revenue for Q2'22 at $2.10 billion. In the year-ago period, the revenue was $1.33 billion, a jump of 58%. The revenue is in line with estimates of $2.11 billion.
Airbnb Q2 Earnings
The jump in revenue helped the company report its most profitable second quarter to date. For Q2'22, the company reported a net income of $379 million. In the year-ago period, the company reported a loss of $68 million.
Airbnb Q2 Results: Free Cash Flow
Company's free cash flow declined sequentially. Free cash flow was $795 million with an adjusted EBITDA of $711 million. As per experts, lower free cash flow numbers were one of the reasons for stock falling on Tuesday.
Airbnb Q2 Booking Numbers:
For the quarter that ended June, Airbnb reported more than 103 million nights and experiences booked. The company said that is the largest quarter numbers ever. However, the number was below estimates of 106.4 million nights and experiences.
Airbnb Quarterly results: Gross Booking Value
It is the number company uses to track host earnings, cleaning fees and taxes, and service fees. It stood at $17 billion in the June quarter, a growth of 27% year-on-year. However, it is slower than the 67% the company reported in the March quarter.
Airbnb Q2 Earnings 2022: Average Daily rates
Average daily rates increased 40% when compared to pre-pandemic levels in 2019 and stood at $164. That’s up 7% from the same quarter a year ago, excluding the effects of currency fluctuations.
Airbnb Share buyback:
Airbnb announced a $2 billion share buyback. It shows the company's confidence in the future and supports the company's long-term growth
Airbnb: Target Price
Based on 31 analysts offering 12-month price targets for Airbnb, the average price target is $134.79 with a high forecast of $197 and a low forecast of $95 per share.
How were Airbnb's Q2 numbers?
Airbnb has reported revenue of $2.1 billion, in line with estimates, and EPS of 0.56 cents, higher than expected.
What is the target price of Airbnb?
Jefferies has given a target price of $140 per share for Airbnb.
What is the PE ratio of Airbnb?
The PE ratio of Airbnb is 81.
How much share buyback did Airbnb announce?
Airbnb announced a $2 billion share buyback in the June quarter.