By Dhirendra Tripathi
Investing.com – Airbnb stock (NASDAQ:ABNB) climbed 12% Friday as rising vaccinations and the reopening of economies helped the company blow past third-quarter estimates. The vacation rental company said things are only going to get better.
The third-quarter results proved that the short-term home rental company was being conservative with its August warning that July through September nights and experiences booking could come in short.
Airbnb said gross bookings, which include room nights booked and experiences, rose 48% from last year, to $11.9 billion, and were also higher than the same pre-Covid period. The third quarter is typically the company’s biggest.
Airbnb said they are “encouraged to see these new travel trends extending beyond summer travel peak and are looking forward to a strong Q4." As of the end of September, Airbnb’s backlog had more than 40% more nights booked for Thanksgiving week in the U.S. than in 2019 and “we are seeing the strong demand for travel extend well into 2022."
The company expects to deliver October through December revenue between $1.39 billion and $1.48 billion, higher than the same period last year as well as the previous quarter. It sees nights and experiences bookings to significantly outperform in both comparisons.
Revenue in the third quarter rose 67%, to $2.2 billion, compared with last year. Adjusted profit per share was $1.22.