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Airbnb Shares Slide Post Q2 Results, Announces $2B Buyback

Published 02/08/2022, 21:49
Updated 02/08/2022, 22:40
© Reuters.  Airbnb Shares Slide Post Q2 Results, Announces $2B Buyback
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Airbnb Inc (NASDAQ: ABNB) reported second-quarter revenue growth of 58% year-over-year to $2.1 billion, in line with the consensus of $2.1 billion. GAAP EPS of $0.56 beats by $0.13.

The revenue was up 73% compared to 2Q19. The revenue growth was driven by the combination of growth in Nights and Experiences Booked and continued strength in ADR.

Net income was $379 million compared with net losses of $(68 million) in 2Q21 and $297 million in 2Q19. Relative to Q2 2021, the net profit margin increased 23%, from a negative 5% in 2Q21 to a positive 18% in 2Q22.

Adjusted EBITDA was $711 million, a substantial improvement compared to Adjusted EBITDA of $217 million in2Q21 and $(43) million in 2Q19, and the margin was 34%.

Nights and Experiences Booked for Q2 stood at $103.7 million (+25% Y/Y) and +24% compared to 2Q19.

Gross Booking (NASDAQ:BKNG) Value was $17 billion, an increase of 27% Y/Y and +73% compared to 2Q19. Airbnb generated $800 million of net cash from operating activities in Q2 and $2.9 billion trailing twelve months of Free Cash Flow.

Long-term stays increased nearly 25% from a year ago and by almost 90% from Q2 2019. The average daily rate averaged $164 in Q2, representing a 40% increase compared to the same period in 2019, and a 1% increase from 2Q21.

As of June 30, 2022, ABNB had $9.9 billion of cash, cash equivalents, marketable securities, and restricted cash.

Buyback: The company announced a $2 billion share repurchase program.

3Q22 Outlook: Airbnb expects revenue of $2.78 billion-$2.88 billion vs. a consensus of $2.77 billion; It expects Adjusted EBITDA to be the strongest quarterly Adjusted EBITDA yet, and the margin to be at or slightly below 49% primarily due to the timing of expenses.

It experts Nights and Experienced Booked year-over-year growth to be stable with the year-over-year growth in Q2 2022. It expects slightly higher ADRs than 3Q21 resulting in a modest acceleration in GBV growth.

Price Action: ABNB shares are trading lower by 9.03% at $105.83 during the post-market session on Tuesday.

Photo via Pixabay

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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