Airbnb Inc. on Tuesday reported record fourth-quarter revenue and profit to achieve its first profitable year, and executives provided a first-quarter forecast that exceeded Wall Street estimates despite plans for price cuts.
shares rose more than 10% in after-hours trading immediately following the release of the results, after rising 3.8% in the regular session to close at $120.87.
The alternative-accommodations booking company reported record revenue and net income for the fourth quarter despite falling short of analysts’ expectations for gross bookings, as well as nights and experiences booked. Executives cited strong demand throughout the year and strong supply.
“All regions saw material growth in 2022 as guests increasingly crossed borders and returned to cities on Airbnb,” executives wrote to shareholders in a letter Tuesday.
Read: Airbnb stock surges after analysts say online-travel demand is still strong
Airbnb reported fourth-quarter gross bookings of $13.5 billion, compared with analysts’ expectation of $13.6 billion. Nights and experiences booked were 88.2 million, the highest fourth-quarter total ever, with a rebound in Asia-Pacific leading the way, though analysts had expected 89.7 million. The average daily rate was $152.81, higher than the $151.40 analysts expected.
Net income for the quarter was $319 million, or 48 cents a share, compared with $55 million, or 8 cents a share, in the year-ago period. Revenue rose to $1.9 billion from $1.53 billion in the year-ago quarter. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) was $506 million, a record high for the fourth quarter.
Analysts surveyed by FactSet had forecast earnings of 26 cents a share on revenue of $1.86 billion, and Ebitda of $434 million.
Last quarter’s results: Airbnb stock drops despite ‘biggest and most profitable quarter ever’
For the full year, Airbnb reported net income of $1.89 billion, or $2.79 a share, on revenue of $8.4 billion. Analysts…