Airbnb shares soared 14% following a stronger-than-expected fourth-quarter earnings report, marking their best trading day ever. Since debuting on the Nasdaq in December 2020, the company has seen its sharpest rally since February 2023, with shares up 22% year-to-date.
Q4 Financial Performance
The online rental platform reported earnings of 73 cents per share on $2.48 billion in revenue, surpassing analyst estimates of 58 cents per share and $2.42 billion in revenue, according to LSEG. Revenue increased by 12% compared to the previous year.
“Airbnb is a fundamentally stronger company today than it was several years ago,” the company stated in a letter to shareholders. “We’re continuing to build on this momentum in 2025, executing a multi-year strategy to perfect the core service, accelerate growth in global markets, and launch and scale new offerings.”
Profitability and Growth
The company reported a net income of $461 million, or 73 cents per share, a turnaround from the previous year’s loss of $349 million, or 55 cents per share. Adjusted profit reached $765 million, reflecting a 4% year-over-year increase.
Gross booking value, which includes host earnings, taxes, service, and cleaning fees, climbed to $17.6 billion, exceeding the $17.2 billion forecast. The company also reported 111 million nights and experiences booked, up 12% from the previous year and above the StreetAccount estimate of 108.7 million.
Investment in Future Growth
During an earnings call, CFO Ellie Mertz announced that Airbnb would invest between $200 million and $250 million to scale new business opportunities set to be unveiled in May.
CEO Brian Chesky emphasized the company’s long-term vision, stating, “We want the Airbnb app — kind of similar to Amazon — to be one place to go for all of your traveling and living needs.” Chesky added that new business initiatives could take three to five years to scale but would strengthen the company’s core operations.
“A great business could get to $1 billion of revenue,” Chesky said. “And you should be able to expect one or a couple of businesses to launch every single year for the next five years.”
Guidance for Q1 2024
Despite strong Q4 results, Airbnb provided a cautious outlook for the first quarter of 2024, projecting revenue between $2.23 billion and $2.27 billion, slightly below the LSEG estimate of $2.3 billion. The company attributed the Q1 2024 revenue dip to favorable seasonal factors in Q1 2023, including Easter and an extra day in February.
Humanitarian Efforts
Airbnb also highlighted its response to the recent wildfires in Los Angeles, stating that its nonprofit Airbnb.org housed over 19,000 displaced people and 2,300 pets. The company reported receiving $27 million in donations, including $18 million contributed by its founders.
Airbnb’s strong Q4 performance, profitability, and investment in future business opportunities reinforce its long-term growth strategy. While cautious Q1 guidance may temper short-term enthusiasm, the company’s vision for expansion and innovation positions it well for continued success.
