Airbnb says bookings are rising despite economic pressure

Consumers are still putting their dollars toward travel and experiences despite broader economic concerns, according to Airbnb’s most recent earnings report.

The travel giant recorded 103.7 million nights and experiences booked in its second quarter (which ended June 30), marking its largest quarterly number ever. That’s up 25% year over year and 24% over the same quarter three years ago, before the company was impacted by the pandemic.

Airbnb is still expecting a summer of growth ahead. Airbnb also gave an indicator of its confidence in its growth by announcing a $2 billion share repurchase program, an effort to offset dilution from its employee stock program.

“We’re just seeing strong overall nights and growth, 25% year-over-year in nights and experiences, that we feel very confident in,” CFO Dave Stephenson said on a call with investors Tuesday afternoon. “Having the same results for Q3, we also feel quite good about. We’re just seeing strong demand for guest travel all around the world.”

In an indication of the current quarter, Airbnb said that it recorded its highest single-day revenue ever on July Fourth. Fourth-quarter reservations are also already “very strong,” Stephenson added on the conference call.

Wall Street has placed lofty expectations on the travel sector as COVID-19 pandemic restrictions end. Even with its best bookings number ever, Airbnb still came in slightly below analyst estimates on nights and experiences, sending the stock down in after-hours trading.

Still, the growth in bookings helped boost the company’s revenue in the most recent quarter. Airbnb came in line with revenue expectations, reporting revenue of $2.1 billion, which is up 58% year over year. Airbnb also reported a net income of $379 million, which marked its most profitable second quarter ever.

“During the height of the pandemic, we made many difficult choices to reduce our spending, making us a leaner and more focused company,” the company said in its letter to shareholders. “We’ve kept this discipline ever since, allowing our hiring and investment plans to remain unchanged since the beginning of the year. Airbnb is well positioned for whatever lies ahead.”

Airbnb said revenue for its current quarter will be between $2.78 billion and $2.88 billion, which would mark 24% year-over-year growth. That figure includes “a significant headwind from foreign exchange fluctuations relative to last year,” the company said in its shareholder letter.