Airbnb Inc. Earnings Report (Q2 2021)

Airbnb Inc. Earnings show a high revenue increase, but concerns about the Delta variant have caused the stock to slip.
cyzgOcmn_400x400.jpg
2 min read
Airbnb Logo Over Gradient

Airbnb Inc. have reported their quarterly earnings on August 12, with revenue increasing to $1.34bn (versus $1.26 forecasted), an increase of over 300% year on year.

Airbnb’s marketing expenses however also increased by 175% year on year to $315m, because of its ‘Made Possible by Hosts’ campaign.

Airbnb’s net loss had also shrunk to $68m, reduced from around 88% from the net loss of $575.6m it experienced last year due to the devastating impact COVID-19 had on the travel industry. As a result, earnings per share was calculated at -$0.11, a reduction from the -$2.18 EPS Airbnb Inc. reported at the height of the pandemic.

Airbnb also warned about stock volatility due to the ongoing surge of cases attributable to the Delta variant in a letter to shareholders. They said that travel behaviour may be affected by the increase of COVID-19 cases as some customers will be reluctant to book Airbnbs and some will be cancelling rooms and requesting refunds. The shareholder letter read ‘we do not yet know how willing people will be to travel in the fall as compared to summer’.

The company expects Q3 to deliver strong revenue results but admits that Q3 booking and experiences will most likely still be lower than those in Q3 of 2019. Airbnb CFO Dave Stephenson said that: ‘As we exit Q2 and come into Q3, we have a combination of fewer bookings for the fall, just given the nature of some of the seasonality, and any kind of impact potentially on Covid concerns…’

Shares of Airbnb Inc. fell in excess of 4% after hours.

Written By

Security Cameras

Why use a VPN

Cloudflare Inc. Earnings Report (Q3 2021)

Cables