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.