well it's a beat on the top line but not
the bottom line revenue came in a little short for
Airbnb earnings per share came in at 56 cents.
The street was expecting 43 cents according to refinitiv estimate
but revenue only came in at 2.1 billion. The
street was expecting it to be a little higher at
2.11 billion. And I think that's where we're seeing
shares go down, we're seeing shares go down as
a result. I think the chart said we were
down a little bit north of 4% at this time
. Now there is some interesting points to this report
, one of it being the fact that they do
expect that Q3 will show the same rate of year
over year growth, year over year growth especially when
it comes to nights booked and also um the number
of experiences booked right now they're seeing about 25% year
over year growth so it should remain steady for the
rest of the year. I know people were keeping
Close eye on what Q. three would look like
, especially with inflation and other macroeconomic headwinds heading towards
this company that was really reliant on travel and people
using that discretionary spending on more leisure activities. The
other thing I thought was interesting is the fact that
they are initiating a stock repurchase program. Um they're
gonna reaches up to$2 billion dollars of class a
common stock. We should know more details as we
get a little bit more with the letters to shareholders
and a little bit more on their call later today
. Um They do feel though however in Q.
Two due to the strengthening U. S. Dollar
especially compared to the euro. Um And the great
the great Britain's pound. Um They are expecting um
that uh they will see a lot of foreign exchange
headwinds more than expected considering that the U. S
. Dollar is so much stronger than international. And
also another interesting thing for them is the fact that
they did confirm that they pulled completely out of the
chinese market at this time. Um And that's something
that we haven't been talking. They decided to exit
domestic china's business and they have about six million active
listings there. So overall it is a mixed report
but I think a little bit disappointing to see that
the revenue didn't come in higher than they were expecting
especially with all that talk of revenge travel and the
more flexibility with the workforce at this time. Yeah
. Michelle I think some of the major takeaways for
me, you did such a great job here of
breaking down the results is that people are starting to
settle back into what life and their patterns were like
before the pandemic over these past few years or so
. That was a big takeaway. And then also
that the company says it's well positioned for whatever lies
ahead. I remember brian Chesky who I think generally
is pretty well regarded as a startup founder. Now
the ceo of a publicly traded company had to make
that tough decision to lay off a good amount of
staff at the store. The pandemic to try to
set this company up for success. And it sounds
like, even though that was a difficult decision to
make, according to Chesky that the company is in
a pretty good spot. Is that a takeaway for
you? Definitely agree. And also just looking at
the fact that they're seeing pre pandemic patterns of seasonality
return, kind of saying that we're going back to
the same travel trends of 20 in 2022 as we
saw before. The pandemic is a good thing now
, that doesn't mean that we're not seeing that additional
boost that I think people were looking for. But
the fact that we're not decreasing travel back to pandemic
levels and that we are getting back to normal is
a good thing. We do know there's still a
lot of choppiness in the travel market right now.
We were just talking about Heathrow even british airways cutting
flights, they're still staffing shortages. But it does
seem like this industry which has been in such turmoil
for the last few years, is starting to normalize
into a certain point and people are getting back to
regular modes of travel compared to pre pandemic levels.
Um well, Michelle Castelluccio with those results, Michelle
, I know we'll be talking more about Airbnb here
later on in this hour, we've got a whole
host of other earnings to get to as well,
so we'll leave it there for now. That stock
is down about 8% after hours.