Airbnb, Inc. Class A (ABNB.US) Fourth Quarter Performance Exceeds Expectations, Expect Strong Continued Travel Demand.

On Thursday after the market closed in the East Coast time, Airbnb, Inc. Class A (ABNB.US) announced its fourth-quarter performance for 2024. Data shows that the company's Q4 revenue was $2.5 billion, a 12% year-over-year increase, surpassing market expectations; earnings per share were $0.73, also better than market expectations. Airbnb, Inc. Class A has made an optimistic forecast for the first three months of 2025, stating that demand remains strong following a robust holiday travel season. Airbnb, Inc. Class A expects the growth rate of accommodation and experience bookings for the first quarter of 2025 to be "relatively stable" compared to the same period last year. This key indicator saw an increase of approximately 8.5% in the first quarter of 2024 (excluding leap days). Wall Street had previously forecasted a growth rate of 8.3% for the current quarter. The performance of Airbnb, Inc. Class A indicates that travel demand remains strong. Previously, several airlines in the United States and online travel company Expedia (EXPE.US) also made similar optimistic comments. Airbnb, Inc. Class A stated that due to "accelerated growth" in all regions, especially in Asia Pacific and Latin America, the company's fourth-quarter accommodation bookings and adjusted revenue exceeded expectations. Cross-border travel is the main driving force behind the growth in accommodation bookings in the Asia Pacific region, and the company continues to see a gradual recovery in outbound travel from China. Specific regional brand campaigns launched in the second half of last year have driven the development of the business in Latin America. After successfully integrating local payment providers on its platform, Airbnb, Inc. Class A's booking indicators in Brazil have performed well. Demand in the North American business showed signs of slowing last summer but has achieved faster growth this year, with accommodation bookings for the holiday season growing in the "mid-single digits." Airbnb, Inc. Class A attributed this to "strong potential tourism trends" in the region, as well as strong growth in accommodation pricing, short-term bookings, and whole-house rentals. However, like Expedia, Airbnb, Inc. Class A also warned that currency fluctuations will affect certain profit indicators in the current quarter. Airbnb, Inc. Class A expects revenue in the first quarter of 2025 to be between $2.23 billion and $2.27 billion, lower than analysts' expectations of $2.29 billion. More than half of the company's revenue comes from outside the United States. Airbnb, Inc. Class A, specializing in shared housing and vacation rental services, announced plans to expand into new businesses beyond accommodation this year. The CEO stated that these new businesses will add $1 billion or more in revenue to the company each year. Airbnb, Inc. Class A plans to invest $200 million to $250 million in launching and promoting these new products starting in May. The company has stated that these investments will include restarting the experiences business related to tourism, courses, and workshops, as well as offering additional services such as private chefs, mid-week cleanings, and in-home massages during stays. Airbnb, Inc. Class A stated that including these investments, the adjusted EBITDA profit margin for the year is expected to be at least 34.5%, higher than expected. With the introduction of new services, these investments will have the most significant impact on the profit margin in the first nine months of 2025 but are expected to "contribute more to revenue growth as these businesses scale in the coming years." Some of the new initiatives introduced by Airbnb, Inc. Class A last year have shown promising results. The "Co-Host Network" feature allows hosts to hire other property managers to manage their rental properties, and since its launch in 10 countries four months ago, it has now expanded to support nearly 100,000 properties. The company stated in a release that the income from these properties is twice that of similar properties and plans to "extend this service in the coming months" to Japan and Korea. As of writing, Airbnb, Inc. Class A's stock price rose 14.86% after the market closed.