Airbnb (ABNB, Financial) recently announced its fourth-quarter results for 2024, showcasing a strong performance with revenue reaching $2.5 billion, a 12% increase year-over-year, surpassing market expectations. The earnings per share stood at $0.73, also exceeding forecasts. The company remains optimistic for the first quarter of 2025, citing robust demand following a strong holiday travel season. Airbnb anticipates stable growth in bookings for accommodations and experiences, projecting an 8.5% increase, slightly above Wall Street's estimate of 8.3%.
The results highlight sustained travel demand, echoing positive sentiments from U.S. airlines and online travel company Expedia (EXPE). Airbnb attributed its Q4 success to accelerated growth in all regions, particularly in Asia-Pacific and Latin America. Cross-border travel significantly boosted bookings in the Asia-Pacific, with outbound travel from China gradually recovering. In Latin America, regional brand initiatives have spurred business growth, especially in Brazil where booking metrics excelled following integration with local payment providers.
Despite a slowdown in North American demand last summer, growth has resumed, with holiday bookings increasing moderately. Airbnb credits this to strong regional travel trends, rising accommodation prices, and growth in short-term bookings and full-home rentals. However, like Expedia, Airbnb warned that currency fluctuations could impact certain earnings metrics this quarter.
Looking ahead, Airbnb plans to expand beyond accommodations, aiming to generate an additional $1 billion in revenue annually from new ventures. The company will invest $200-$250 million starting in May to launch new products, including travel experiences, private chefs, and in-home services. These investments are expected to impact EBITDA margins initially but contribute significantly to revenue growth in the coming years.
