Airbnb (ABNB) is set to report earnings after the bell on Tuesday.
Investors will be paying close attention to how Airbnb is performing amid rising inflation and a tough macro environment. The pressure is on — other travel names like Expedia (EXPE) and Booking Holdings (BKNG) reported solid results last week.
Here are the key numbers Wall Street is expecting, compiled by Bloomberg:
Income: $1.79 billion estimated
EPS: 12 cents approx
Booked Nights and Experiences: estimated at $122.4 million
Q2 Revenue Guidance: $2.42 billion estimated
‘Feelings are mixed’
Broadly speaking, online travel demand has completely found its way post-COVID, and now the lingering concern is macroeconomic in nature, Doug Anmuth of JP Morgan wrote on May 1.
“We believe overall online travel demand remains healthy in the run-up to peak summer travel, despite limited signs of macro-related slowdown Some Overall consumer sentiment softened,” Anmuth wrote.
The market itself is feeling better about Airbnb than it did a few months ago, Anmuth continued, though with some caveats.
“We believe there has been some improvement in sentiment since the start of the year, with ABNB the best performing online travel name in our coverage,” he wrote. “However, our discussions suggest that sentiment is mixed with major concerns including the magnitude of ADR [deceleration] and its impact on profitability, potential softening of the overall home vacation rental market, and the potential for limited supply growth.”
This summer Airbnb is facing questions about where demand is going – there is some optimism, but also a sense that the consumer remains somewhat reticent as we head into the summer travel season . However, if there is a demand conflict, they may not be visible to Airbnb.
“We note that VCSA, a supply partner for ABNB, is seeing weaker demand and higher supply churn throughout its home vacation rental markets in the US,” they wrote in the note. “However, we also recognize that ABNB is well diversified across urban/vacation and partial/whole home, and the ABNB results may not reflect the same constraints.”
elle garfinkel is the Senior Tech Reporter at Yahoo Finance. follow him on twitter @agarfinks and on LinkedIn,
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