Airbnb shares pop 15% on better-than-expected earnings and revenue

Core Insights - Airbnb shares surged 15% in extended trading after reporting fourth-quarter earnings and revenue that exceeded analysts' expectations [1] - The company reported a revenue increase of 12% year-over-year, reaching $2.48 billion, and a net income of$461 million, compared to a loss of $349 million in the same period last year [1][7] - For the first quarter of 2024, Airbnb anticipates revenue between$2.23 billion and $2.27 billion, slightly below analysts' expectations of$2.3 billion [2] Financial Performance - Adjusted profit for the fourth quarter was $765 million, a 4$653.5 million [2] - The company reported 111 million nights and experiences booked, a 12% increase from the previous year, exceeding the expected 108.7 million [4] - Gross booking value for the fourth quarter totaled $17.6 billion, above the$17.2 billion expected by analysts [4] Strategic Developments - The company has rebuilt its technology stack and introduced new product updates, which are contributing to higher conversion rates [3] - Airbnb is executing a multi-year strategy aimed at enhancing core services, accelerating global market growth, and launching new offerings [4] - The company plans to unveil new offerings in May, although specific details were not disclosed [3] Social Impact - Airbnb.org has provided housing for over 19,000 individuals and 2,300 pets affected by recent wildfires in Los Angeles, pledging 100,000 free nights and receiving $27 million in donations [5] Market Position - Airbnb has over 5 million hosts and 8 million active listings globally, with average daily rates increasing by 1$158 in the fourth quarter [6] - Prior to the earnings report, Airbnb shares had risen about 7% for the year, outperforming the Nasdaq, which gained over 3% [6]