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Shares in Airbnb’s short-term rental company jumped, up 4% and down by 1%, on Thursday’s trading session, as the company posted increasing losses and a decline in revenue and quarter bookings quarter earnings.
Here’s what they reported:
- Recipe: $ 859 million versus $ 748 million provided by Refinitiv
- Loss per share: $ 11.24
CNBC does not compare reported earnings with Wall Street estimates for a company’s first report as a publicly traded company, as uncertain stock counts can distort expectations.
The company posted a net loss of $ 3.89 billion in the fourth quarter. This was 1,005% down from a loss of $ 352 million the previous year. Airbnb attributed much of the loss to charges related to the company’s initial public offering in December.
Revenue fell to $ 859 million, down 22% year-on-year from $ 1.11 billion. Fourth-quarter revenue also fell nearly 36%, from $ 1.34 billion in the third quarter.
The company also announced that it expects the year-over-year decline in revenue in the first quarter to be less than the decline the company saw in the fourth quarter. Airbnb said it anticipates that year-over-year comparisons for gross booking and nights and experiences booked in the first quarter will be higher than in the previous year, but lower than in the first quarter of 2019.
The company said it continues to “have limited visibility for growth trends in 2021, given the difficulty in determining the pace of vaccine release and the related impact on the desire to travel.”
Airbnb accounted for 46.3 million nights and experiences booked in the fourth quarter, down 39% year over year. This number dropped 25% compared to the 61.8 million nights and experiences reserved in the third quarter.
The gross value of reserves was US $ 5.9 billion, down 31% year on year. The gross value of reserves also dropped more than 26%, from $ 8 billion in the third quarter.
Thursday’s earnings report is Airbnb’s first since the company went public in December.