Airbnb shares fall after company reports revenue jump of 300% but warns about delta
Airbnb’s stock on Thursday fell more than 4% after the company reported its second-quarter earnings. The company beat Wall Street’s expectations for revenue and bookings but warned about expected volatility from the Covid delta variant.
Here’s how the company did:
- Earnings: Loss of 11 cents per share
- Revenue: $1.34 billion vs. $1.26 billion forecast by Refinitiv
The company reported 83.1 million nights and experiences booked, up 29% from the first quarter and up a whopping 197% year over year after the travel industry collapsed a year ago amid the Covid-19 pandemic. Analysts polled by StreetAccount had expected 79.2 million nights and experiences booked.
Revenue came in at $1.34 billion, up nearly 300% year over year.
Airbnb’s sales and marketing expenses for the second quarter were up 175% year over year, reaching $315 million. The company attributed the rise in marketing expenses to its Made Possible by Hosts campaign. Airbnb had warned in February that it expected its sales and marketing expenses as a percentage of revenue in the first half of 2021 to be higher than that of the second half.
Gross booking value, Airbnb’s way of tracking host earnings, service fees, cleaning fees and taxes, totaled $13.4 billion, up 320% year over year and above the $11.56 billion FactSet consensus.
Airbnb’s net loss narrowed to $68 million for the quarter, down more than 88% from a net loss of $575.6 million a year prior.
Its average daily rate rose to $161, up from $160 in the prior quarter, reflecting an increase in the amount customers are spending for homes and experiences. That figure was up 41% year over year.
In its letter to shareholders, the company warned that it is bracing for volatility as a result of the Covid-19 delta variant. Airbnb said it expects delta to affect travel behavior, specifically in regard to how often and when guests book and cancel.
The company said that although it expects the third quarter to deliver its strongest quarterly revenue on record, it expects Q3 nights and experiences booked to be below that of Q2 and Q3 2019.
“As we exit Q2 and come into Q3, we have a combination of fewer bookings for the fall, just given the nature of some of the seasonality, and any kind of impact potentially on Covid concerns,” Airbnb CFO Dave Stephenson said on a call with analysts.
Airbnb said vaccination progress and containment of new variants will be variables that impact how the company performs in the fourth quarter.
“We do not yet know how willing people will be to travel in the fall as compared to summer,” the company said in its shareholder letter.
Intuit CEO Sasan Goodarzi speaks at the opening night of the Intuit Dome in Los Angeles on Aug. 15, 2024.
Rodin Eckenroth | Filmmagic | Getty Images
Intuit shares fell 6% in extended trading Thursday after the finance software maker issued a revenue forecast for the current quarter that trailed analysts’ estimates due to some sales being delayed.
Here’s how the company performed in comparison with LSEG consensus:
- Earnings per share: $2.50 adjusted vs. $2.35 expected
- Revenue: $3.28 billion vs. $3.14 billion
Revenue increased 10% year over year in the quarter, which ended Oct. 31, according to a statement. Net income fell to $197 million, or 70 cents per share, from $241 million, or 85 cents per share, a year ago.
While results for the fiscal first quarter topped estimates, second-quarter guidance was light. Intuit said it anticipates a single-digit decline in revenue from the consumer segment because of promotional changes for the TurboTax desktop software in retail environments. While that will affect revenue timing, it won’t have any impact on the full 2025 fiscal year.
Intuit called for second-quarter earnings of $2.55 to $2.61 per share, with $3.81 billion to $3.85 billion in revenue. The consensus from LSEG was $3.20 per share and $3.87 billion in revenue.
For the full year, Intuit expects $19.16 to $19.36 in adjusted earnings per share on $18.16 billion to $18.35 billion in revenue. That implies revenue growth of between 12% and 13%. Analysts polled by LSEG were looking for $19.33 in adjusted earnings per share and $18.26 billion in revenue.
Revenue from Intuit’s global business solutions group came in at $2.5 billion in the first quarter. The figure was up 9% and in line with estimates, according to StreetAccount. Formerly known as the small business and self-employed segment, the group includes Mailchimp, QuickBooks, small business financing and merchant payment processing.
“We are seeing good progress serving mid-market customers in MailChimp, but are seeing higher churn from smaller customers,” Sandeep Aujla, Intuit’s finance chief, said on a conference call with analysts. “We are addressing this by making product enhancements and driving feature discoverability and adoption to improve first-time use and customer retention.”
Better outcomes are a few quarters away, Aujla said.
CreditKarma revenue came in at $524 million, above StreetAccount’s $430 million consensus.
At Thursday’s close, Intuit shares were up about 9% so far in 2024, while the S&P 500 has gained almost 25% in the same period.
On Tuesday Intuit shares slipped 5% after The Washington Post said President-elect Donald Trump’s proposed “Department of Government Efficiency” had discussed developing a mobile app for federal income tax filing. But a mobile app for submitting returns from Intuit is “already available to all Americans,” CEO Sasan Goodarzi told CNBC’s Jon Fortt.
Goodarzi said on CNBC that he’s personally communicating with leaders of the incoming presidential administration.
On the earnings call, Goodarzi sounded optimistic about the economy.
“Our belief, which is not baked into our guidance, is that we will see an improved environment as we look ahead in 2025, particularly just with some of the things that I mentioned earlier around just interest rates, jobs, the regulatory environment,” he said. “These things have a real burden on businesses. And we believe that a better future is to come.”
WATCH: H&R Block, Intuit shares fall after report Trump administration is considering a free tax-filing app
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