Airbnb on Wednesday forecast slower growth for the remainder of the year, attributing the outlook to tough year-ago comparisons when strong bookings in Asia and Latin America boosted earnings.
Following the announcement, shares of the vacation rental company dropped more than 6% after hours.
The company experienced a rebound in U.S. travel demand during the second quarter after a slowdown in April, mirroring trends seen by other travel firms like United Airlines and Wyndham Hotels.
Despite uncertainties from President Trump’s shifting trade policies and inflation, the industry remains cautiously optimistic about improving consumer confidence.
During the quarter ending in June, nights booked grew steadily each month, driven largely by increased domestic U.S. travel, CEO Brian Chesky said on a post-earnings call. “While the quarter started with some global economic uncertainty, travel demand picked up,” he noted.
However, Airbnb expects year-over-year growth in night bookings to moderate heading into the fourth quarter and anticipates its implied take rate—the ratio of revenue to gross bookings—to remain flat in Q3.
Bookings in Latin America and Asia Pacific rose a modest 20% year-over-year in Q4 2024, following similar gains in Q3.
For Q3, Airbnb projects revenue between $4.02 billion and $4.10 billion, close to the $4.05 billion consensus estimate.
Nights and seats booked—a broader metric including all services booked on the platform—increased 7% in Q2, while gross booking value grew 11% to $23.5 billion, boosted by Easter timing and cross-currency fees.
The company reported Q2 revenue of $3.10 billion, slightly above the $3.04 billion expected, and posted earnings per share of $1.03, beating estimates of 93 cents.
In a letter to shareholders, the company said it had a strong second quarter, even against a volatile macroeconomic backdrop. U.S. President Donald Trump’s sweeping tariff and trade policies plunged markets into chaos for much of April.
“Despite global economic uncertainty early in the quarter, travel demand picked up, and nights booked on Airbnb accelerated from April to July,” the company said.
Airbnb reported 134.4 million nights and seats booked, up 7% from a year ago and above the 133.35 million expected by StreetAccount.
Airbnb also announced a new $6 billion share repurchase program.
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