Airbnb's Q1 2024 profit doubles to $264 million
Airbnb, the San Francisco-based vacation rental platform, has reported a significant increase in its profit for Q1 2024. The company's net income rose to $264 million, up from $117 million during the same period in 2023. This was accompanied by an 18% revenue hike, bringing the total to $2.14 billion. Additionally, earnings per share reached 41 cents, surpassing analysts' prediction of 23 cents according to FactSet.
Airbnb's stock suffers despite strong Q1 performance
Despite Airbnb's impressive financial growth, the company's stock experienced a roughly 7% drop in after-market trading on Wednesday. This downturn was triggered by Airbnb's Q2 2024 revenue forecast, which did not meet Wall Street expectations. The company anticipates its revenue for this period to be between $2.68 billion and $2.74 billion, falling short of analysts' predictions.
Factors influencing Airbnb's lower Q2 revenue forecast
Airbnb attributes its lower-than-expected Q2 2024 revenue forecast to unfavorable exchange rates and the timing of Easter, a key travel holiday. In 2024, Easter fell in Q1 (March 31) rather than Q2 as it did in 2023. Additionally, the inclusion of February 29 "leap day" added an extra day of business to the first quarter compared to a year earlier, which also contributed to the earnings growth.
