Financial Data and Key Metrics Changes - In Q1 2025, Airbnb reported nearly $25 billion in guest spending, indicating strong demand despite global uncertainties [7] - Revenue for the quarter was $2.3 billion, up 6% year-over-year, with an adjusted EBITDA of $417 million, representing an 18% margin [14][15] - Free cash flow for Q1 was $1.8 billion, with a free cash flow margin of 39% [15] - The company had $11.5 billion in corporate cash and investments at the end of Q1 [15] Business Line Data and Key Metrics Changes - Nights and experiences booked reached 43 million, an 8% increase year-over-year [13] - Growth by region showed Latin America growing in the low twenties, Asia Pacific in the mid-teens, Europe in the mid-single digits, and North America in the low single digits [14] Market Data and Key Metrics Changes - The U.S. market has seen a decline in foreign travelers, with inbound travel from Canada significantly lower, but domestic travel remains strong [28][31] - Latin America continues to be the fastest-growing region, with origin nights in Brazil growing 27% [22] Company Strategy and Development Direction - Airbnb is focused on long-term growth and preparing for a transformation beyond just accommodations, with significant upgrades to its core service [9][12] - The company plans to launch new offerings on May 13, 2025, which are expected to drive future revenue growth [19][70] - The strategy includes perfecting the core service, accelerating growth in global markets, and launching new offerings [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong results in Q2 despite global economic volatility, expecting revenue growth of 9-11% year-over-year [17] - The company is monitoring geopolitical and macroeconomic uncertainties but believes its adaptable business model will remain resilient [23] Other Important Information - Airbnb has repurchased $807 million of its common stock during the quarter, with $2.5 billion remaining on its repurchase authorization [15] - The company has made significant improvements to its app and pricing transparency, which are expected to enhance user experience and drive bookings [10][11][45] Q&A Session Summary Question: Can you expand on travel corridor changes and market share impact in the U.S.? - Management noted a decline in foreign travelers to the U.S., but domestic travel remains strong, and they continue to gain market share in the U.S. despite broader economic challenges [28][31] Question: What behaviors are being observed from U.S. guests? - Higher income travelers remain stable, with short lead times for bookings showing growth, while longer lead times are softer [36][38] Question: What are the chances for reaccelerating unit growth? - Management believes there is significant potential for growth by improving core services and expanding into international markets [41][47] Question: How does the company view the opportunity in hotels? - Management sees hotels as a significant opportunity for Airbnb, especially in urban markets where Airbnb homes may be fully booked [51][53] Question: What is the long-term sustainability of margins? - The company aims to strengthen its core business while investing in growth initiatives, expecting compelling margins over time [86][87] Question: How are expansion markets tracking in terms of profitability? - Expansion markets are generating attractive contribution profits, with investments focused on product localization and comprehensive marketing strategies [107][109]

Core Insights - Airbnb reported first-quarter results that were mostly in line with estimates, but issued a disappointing revenue forecast for the current period, leading to a 4% decline in shares [1][2] Financial Performance - Revenue increased by 6% year-over-year to approximately $2.1 billion, while net income fell to $154 million (24 cents per share) from $264 million (41 cents per share) in the same period a year earlier [1] - For the second quarter, Airbnb expects revenue between $2.99 billion and $3.05 billion, with a midpoint of $3.02 billion, slightly below analysts' forecast of $3.04 billion [2] - Gross booking value rose by 7% year-over-year to $24.5 billion, aligning with estimates, while nights and experiences booked increased by 8% to 143.1 million, close to the 143.4 million estimate [4] Market Trends - The company noted softer results in the U.S., attributed to broader economic uncertainties, despite strong year-over-year growth in North America [2][3] - There was a significant increase in nights booked by Canadian guests visiting Mexico, which jumped by 27% year-over-year in March [5] Operational Updates - Airbnb announced the removal of 450,000 listings following updates to its host quality system in 2023 and teased new app updates that will expand beyond just places to stay [6]

Revenue and Income - Revenue for Q1 2025 increased by 6% to $2.3 billion compared to Q1 2024, driven by a rise in check-ins for Nights and Experiences Booked [143]. - Net income for Q1 2025 decreased by 42% to $154 million, primarily due to higher payroll-related expenses and impairment losses [144]. - Revenue for the three months ended March 31, 2025, increased by $130 million, or 6%, to $2,272 million compared to $2,142 million in the same period in 2024 [167]. - On a constant-currency basis, revenue increased by 8% compared to the same period in the prior year [167]. - Net income decreased by $110 million, or 42%, to $154 million for the three months ended March 31, 2025 [164]. Cash Flow and Financial Position - Cash provided by operating activities was $1.8 billion in Q1 2025, down from $1.9 billion in Q1 2024 [145]. - Free Cash Flow for Q1 2025 was $1.8 billion, down from $1.9 billion in Q1 2024, with a Free Cash Flow Margin of 78% [160]. - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments totaling $11.5 billion [178]. - Net cash provided by operating activities for the three months ended March 31, 2025 was $1.8 billion, driven by net income of $154 million and unearned fees of $1.1 billion [183]. - The net increase in cash, cash equivalents, and restricted cash for the three months ended March 31, 2025 was $3.99 billion [183]. Expenses and Costs - Cost of revenue increased by $26 million, or 5%, to $506 million, primarily due to an increase in merchant fees of $17 million and amortization costs of $12 million [168]. - Product development expenses rose by $93 million, or 20%, to $568 million, driven by an 11% increase in average headcount [170]. - Sales and marketing expenses increased by $49 million, or 10%, to $563 million, primarily due to higher payroll-related expenses and increased marketing activities [171]. - Interest income decreased by $29 million, or 14%, to $173 million, primarily due to lower interest rates [174]. - Other expense, net increased by $28 million, or 280%, to $(38) million, primarily due to impairment charges on investments [175]. Share Repurchase and Capital Management - The company repurchased 6.1 million shares of Class A common stock for $807 million, with $2.5 billion remaining under the share repurchase program [145]. - The company repurchased 6.1 million shares of Class A common stock for $807 million during the three months ended March 31, 2025 [182]. - The company anticipates future capital requirements will include share repurchases, new product introductions, and expansion of sales and marketing activities [187]. - The company may seek additional capital or incur debt to fund strategic initiatives, with liquidity subject to various risks [187]. Growth and Market Conditions - Nights and Experiences Booked rose by 8% from 133 million in Q4 2024 to 143 million in Q1 2025 [151]. - Gross Booking Value (GBV) increased by 7% from $22.9 billion in Q1 2024 to $24.5 billion in Q1 2025 [151]. - The strongest growth in Nights and Experiences Booked occurred in Latin America and Asia Pacific, reflecting the company's focus on international expansion [153]. - Macroeconomic conditions, including inflation and interest rates, have not materially impacted the company's financial condition to date, but future impacts remain uncertain [146]. Other Financial Information - Adjusted EBITDA for Q1 2025 was $417 million, a slight decrease from $424 million in Q1 2024 [158]. - The effect of exchange rate changes resulted in an increase of $207 million in cash, cash equivalents, and restricted cash, attributed to the weakening of the U.S. dollar [186]. - The company recorded non-cash charges of $358 million, primarily from stock-based compensation expense [183]. - The company’s financial condition is based on estimates and assumptions that may differ under varying conditions [188].

Core Insights - Airbnb has established itself as a market leader in the accommodation sector since its inception in 2007, originally starting with a bed and breakfast concept [1] - The company faces competition from major players such as Booking and Expedia [1] Company Characteristics - Companies that exhibit growth in revenue, earnings, and free cash flow are considered attractive for investment [1] - Excellent growth prospects are a key characteristic for potential investment opportunities [1] - Favorable valuations are essential for stock selection [1] - Preference is given to companies with steady growth, high free cash flow margins, dividend stocks, and generous share repurchase programs [1]

Core Viewpoint - Airbnb (ABNB) is set to release its first-quarter 2025 results on May 1, with expected revenues between $2.23 billion and $2.27 billion, indicating a year-over-year increase of 4-6% or 7-9% when excluding foreign exchange impacts [1] Revenue and Earnings Expectations - The Zacks Consensus Estimate for first-quarter revenues is currently $2.26 billion, reflecting a year-over-year growth of 5.61% [1] - The consensus estimate for earnings is 25 cents per share, unchanged over the past 30 days, representing a 39.02% decline from the same quarter last year [2] Key Factors Influencing Performance - Airbnb saw an acceleration in Nights and Experiences Booked in Q4 2024, driven by strong growth in first-time bookers, particularly in the Asia Pacific and Latin America regions [3] - Year-over-year growth in Nights and Experiences Booked for Q1 2025 is expected to remain stable compared to Q1 2024 [3] - Average Daily Rates (ADR) are anticipated to dip year-over-year due to foreign exchange headwinds, although a modest increase is expected when excluding these impacts [4] Product and Service Enhancements - Over the past few years, Airbnb has introduced over 535 features and upgrades, including Guest Favourites and the Co-Host Network, which supports nearly 100,000 listings [5] - Enhanced search functionality and merchandising have led to higher conversion rates, contributing to expected growth in Q1 2025 [6] - The company is focusing on mainstream adoption of hosting and expanding beyond accommodations, with progress anticipated in the quarter under review [7] Financial Metrics and Challenges - Airbnb expects adjusted EBITDA and its margin to decline in Q1 2025 due to one-time calendar factors and currency headwinds, although the margin would remain flat year-over-year without these impacts [8] - Increased operational costs are expected to potentially impact the bottom line [8] Earnings Prediction Model - According to the Zacks model, Airbnb has a positive Earnings ESP of +7.39% and a Zacks Rank of 3, indicating a favorable outlook for an earnings beat [9]

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective. Bearing this in mind, let's now explore the average estimates of specific Airbnb metrics that are commonly monitored and projected by Wall Street analysts. The consensus estimate for 'Gross Booking Value' stands at $24.62 billion. The estimate is in contrast t ...

Group 1: Market Overview - The stock market is experiencing high uncertainty due to a trade war initiated by the United States, leading to significant declines in many stocks, some by 20% or more [1][2] - Despite the turbulence in 2025, there are opportunities for investors to acquire high-quality companies at discounted prices [2] Group 2: Remitly's Growth Potential - Remitly is positioned to gain market share in the remittance and international money-transfer market, which is characterized by high fees from legacy players [3] - The company reported a 32% year-over-year increase in customers, reaching 7.8 million, and a 39% year-over-year increase in send volume to $15.4 billion in Q4 2024 [4] - With annual remittances estimated at around $1 trillion, Remitly has significant room for growth, potentially tripling its revenue and stock price over the next five years [5] Group 3: Airbnb's Expansion Strategy - Airbnb is not growing as rapidly as Remitly but has the potential to triple its stock price by expanding profit margins and repurchasing stock [8][12] - The company is diversifying geographically, with strong growth in new markets like Brazil and Japan, where nights and experiences booked grew over 20% year-over-year [9] - Airbnb is investing in new products for both hosts and guests, which could further accelerate revenue growth beyond the current 12% year-over-year rate [10][11]

These companies are growing quickly without their stock prices reflecting it. That presents an opportunity for investors today.A stock trading at a 52-week low is simply when the stock price is at its lowest point of the past 12 months. While this indicator does not guarantee that a stock is set to rebound and do well for shareholders, it can pay to look at a basket of 52-week low stocks and see if there are any high-quality businesses getting thrown out with the bath water. You might find some cheap stocks ...

Airbnb is cheap, but is it a steal for investors?Airbnb (ABNB 2.98%) stock has struggled over the past year as growth has slowed and the market has questioned travel spending growth. But there are silver linings, and the company may have more growth opportunities than investors realize, which Travis Hoium covers in this video.*Stock prices used were end-of-day prices of April 22, 2025. The video was published on April 24, 2025. ...

Airbnb (ABNB) announced on Monday that it is rolling out total price display as the default setting for all guests globally, aiming to improve pricing clarity and support better booking decisions across its platform.The new pricing format shows the total cost of a stay, including all fees before taxes, directly in search results. First piloted in select markets in 2019 and made available globally through an optional toggle two years ago, the feature has since been used by nearly 17 million guests to date.Th ...