Airbnb Inc. forecast first-quarter revenue to beat Wall Street expectations, attributing its upbeat forecast to a surge in international travel and an increase in longer stays. The company expects revenue to be in the range of $2.03 billion to $2.07 billion, slightly above the average estimate of $2.03 billion.
Revenue growth is supported by strong international travel demand, which is expected to continue throughout the year. This demand is supported by expanding global air connectivity and particular interest in destinations in Asia and Latin America. In contrast, travel within North America is forecast to stabilize.
Airbnb, which generates a significant portion of its revenue from international markets, also recorded a slowdown in the growth rate of booked nights in the first quarter compared to the last quarter of 2023.
The company reported that 98.8 million nights and experiences were booked in the fourth quarter ended December 31, an increase of 12% year-on-year.
The most significant growth was seen in the Asia Pacific region and Latin America, with the number of overnight stays booked in China increasing by nearly 90% year-on-year.
The company’s fourth quarter revenue reached $2.20 billion, beating the forecast range of $2.13 billion to $2.17 billion. In addition, the average daily rate, or cost per night, increased by 3% and there was a notable 20% increase in nights booked for long-term travel.
Despite the positive revenue figures, Airbnb posted a net loss of $349 million for the quarter. The loss was largely due to unpaid income tax liabilities in Italy. In December, the company announced that it would pay $621 million to the Italian Revenue Administration for taxes due between 2017 and 2021.
Reuters contributed to this article.
