TLDR
- Airbnb posted Q3 revenue of $4.10 billion, a 9.7% year-over-year increase, while gross bookings jumped 14% to $22.9 billion.
- International expansion markets delivered growth rates twice as fast as core markets such as the U.S., Canada, UK, France, and Australia.
- Q4 revenue guidance of $2.66 billion to $2.72 billion surpassed Wall Street’s $2.67 billion estimate, sending shares up 5.5% after hours.
- Latin America led growth with the fastest increase in nights and seats booked, powered by Brazil’s interest-free payment plan launch.
- Earnings per share of $2.21 exceeded last year’s $2.13, while Japan domestic bookings rose 27% and India first-time users increased 50%.
Airbnb reported third-quarter revenue of $4.10 billion on Thursday. The figure represents a 9.7% increase compared to the same quarter in 2024.
The vacation rental company beat analyst expectations with its performance. Earnings per share reached $2.21, up from $2.13 in the prior year period.
Investors pushed shares 5.5% higher in after-hours trading. The move reflected confidence in the company’s international expansion strategy.
Gross bookings totaled $22.9 billion for the quarter. This marked a 14% climb from the previous year.
The company’s fourth-quarter revenue forecast ranged from $2.66 billion to $2.72 billion. Wall Street analysts had expected $2.67 billion for the period.
International Markets Drive Performance
Expansion markets grew at double the rate of core regions over the past year. Core markets include the United States, Canada, United Kingdom, France, and Australia.
Latin America recorded the fastest growth in nights and seats booked. The combined metric tracks stays and activities reserved on the platform.
Brazil launched an interest-free payment plan during the quarter. The new feature contributed to the Latin American booking surge.
Japan saw domestic travel bookings increase 27% during the period. India posted a 50% jump in first-time platform users.
Airbnb customized its platform for different regions. The changes included new payment methods and localized marketing efforts.
U.S. Market Posts Modest Gains
North American nights booked grew in the mid-single digits. Performance slightly exceeded the previous quarter’s results.
The company introduced a “Reserve Now, Pay Later” option in the U.S. The feature encouraged travelers to book accommodations earlier.
American consumer spending on travel has softened recently. Inflation concerns and economic uncertainty have influenced booking patterns.
Net income for the quarter came in at $1.374 billion. This compared to $1.368 billion in the third quarter of 2024.
Financial Metrics and New Initiatives
Cash and cash equivalents reached $7.528 billion at quarter end. Total assets grew to $23.064 billion during the same timeframe.
Current liabilities increased during the reporting period. The rise stemmed mainly from the current portion of long-term debt.
The platform rolled out a new services section. Options include catering, photography sessions, and spa treatments.
CEO Brian Chesky discussed the services feature on the earnings call. He said it could take three to five years for experiences and services to materially impact the business.
The company did not share booking numbers for the services section. Investment continues in technology development and marketing campaigns to expand global reach.
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