Airbnb ABNB shares jumped 14.5% on Feb. 14, 2024, after the company reported fourth-quarter earnings and revenue that beat analysts’ estimates.Its quarterly earnings of $0.73 per share came ahead of the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.76 per share a year ago.
Airbnb, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $2.48 billion in Q4, surpassing the Zacks Consensus Estimate by 2.47%. This compares to year-ago revenues of $2.22 billion. Airbnb said its first quarter of 2024 benefited from both Easter and an extra day in February.
Here’s a look at how Airbnb fared in the latest reported quarter based on the key metrics tracked and projected by Wall Street analysts:
- Gross Booking Value: $17.60 billion versus $17.18 billion estimated by nine analysts on average.
- Nights and Experiences Booked: 111 million compared to the 108.49 million average estimate based on eight analysts. The company said its "Nights and Experiences Booked" metric recorded its highest growth of 2024 in Q4, contributing to a record 491 million bookings for the year and nearly $82 billion in gross booking value.
- Gross Booking Value per Night and Experience Booked (ADR): $158.13 versus $158.50 estimated by seven analysts on average. Average daily rates increased 1% from a year ago to $158 in the fourth quarter, the company said.
Airbnb Success Since IPO & Outlook
Airbnb surpassed the growth of the travel industry and are eyeing to carry forward this momentum into 2025. Since its 2020 IPO, Airbnb has tripled both its revenue and GBV.Airbnb expects revenues in the range of $2.23 billion to $2.27 billion for the first quarter of 2025, while the Zacks Consensus Estimate was $2.29 billion.EBITDA margin guidance of at least 34.5% for the full year 2025 was roughly in line with the Street’s estimate of 34.6%, as quoted on investing.com.
Any Downside Risks?
Airbnb stock is apparently overvalued. The Airbnb stock trades at a Price/Earnings (trailing twelve month) of 34.15X versus the underlying Leisure and Recreation Services industry’s multiple of 19.69X. Price/Book (most-recent-quarter) of the stock is 10.60X versus 2.24X offered by the industry. Price/Cash Flow (most-recent-fiscal-year) of the ABNB stock is 30.57X versus 11.90X offered by the underlying industry.
Are ETFs Better Bets?
Against this backdrop, investors can play the new-found optimism in the Airbnb shares via the exchange-traded fund (ETF) route. These Airbnb-heavy ETFs minimize the company-specific concentration risks. These ETFs Global X PropTech ETF PTEC, WisdomTree New Economy Real Estate Fund WTRE, Pacer US Cash Cows Growth ETF BUL, Amplify Travel Tech ETF AWAY and Nightview Fund NITE NITE. Airbnb stock has exposure to these funds in the range of 7.84% to 4.35%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
