Brian Chesky, CEO of Airbnb speaking on CNBC’s Squawkbox on May 4th, 2023.
Total revenue rose 20% year over year. Airbnb swung to a net profit of $117 million, or 18 cents per share, from a net loss of $19 million, or 3 cents per share, in the year-earlier period. The figure marks the first time Airbnb has been profitable during its first quarter on a GAAP basis.
In its shareholder letter, Airbnb said it had a “strong start” to the year, and it is looking forward to another “strong summer travel season.” However, it warned that second-quarter comparisons would be tough, saying, “Nights and Experiences Booked will have unfavorable year-over-year comparisons in Q2 2023 as we overlap pent-up 2022 demand following the COVID Omicron variant.”
The home-sharing platform forecast second-quarter revenue between $2.35 billion and $2.45 billion. Analysts polled by Refinitiv expected $2.42 billion.
During its quarterly call with investors, Airbnb said it also plans to integrate artificial intelligence features, including GPT-4, into its platform over the next year or so. The company said customers can expect to see “big changes.”
Average daily rates were flat compared to a year ago at $168 in the first quarter, and the company said active listings increased 18% year over year.
Gross booking value, which Airbnb uses to track host earnings, service fees, cleaning fees and taxes, totaled $20.4 billion in the first quarter. The company reported 121.1 million nights and experiences booked in the first quarter, up 19% year over year, in line with estimates by analysts, according to StreetAccount.
The company said in the investor letter that it intends to stay focused on three “strategic priorities.” The company said it is working to make hosting on the platform just as popular as travel, provide affordable stays for guests and increase its presence in “less mature” international markets.
Airbnb added in the investor letter that travelers are returning to major cities, and they are also booking longer stays.
Correction: Airbnb’s total revenue for the first quarter rose 20% year over year. An earlier version misstated the time frame.