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In the earnings report, Airbnb noted that net revenue in Q4 2022 rose from $55 million in Q4 2021 to $319 million.
Airbnb (NASDAQ: ABNB) exceeded expectations on revenue and profit during Q4 2022, causing its stock to increase by over 9% in after-trading hours. While analysts predicted $1.86 billion, revenue came in at $1.90 billion. Airbnb also said earnings per share for Q4 2022 was 48 cents, higher than the expected 25 cents. The quarterly revenue jumped 24% YOY, signifying the increasing travel demand.
Airbnb Exceeds Expectations in Q4 2022
In the earnings report, Airbnb noted that net revenue in Q4 2022 rose from $55 million in Q4 2021 to $319 million. The company acknowledged that it was its most profitable fourth quarter ever. At the same time, quarterly adjusted EBITDA was the rental company’s highest in history at $506 million. Meanwhile, the company recorded $333 million in adjusted EBITDA in the same period of 2021. In addition to the YoY increase, adjusted earnings before interest, taxes, depreciation, and amortization surpassed the $432 million expected by analysts. Airbnb confirmed that it saw a strong guest demand throughout the past year as all its regions recorded significant growth.
“Nights and Experiences Booked increased 20% in Q4 2022 compared to a year ago. In Q4 2022, we had our highest number of active bookers yet, demonstrating guests’ excitement to travel on Airbnb despite evolving macroeconomic uncertainties. Globally, we’ve now had 1.4 billion cumulative guest arrivals. And heading into 2023, we see a strong backlog for Q1 with longer lead times for bookings in Q4 2022 compared to a year ago.”
The pace continued till the end of 2022, causing the vacation rental company to end the year with 6.6 million active listings globally. This represents an additional 900,000 listings compared to the beginning of the year, minus China. Airbnb is confident that its global network and product innovations contributed to the impressive performance in Q4 2022.
Airbnb’s Strategic Priorities for 2023
Less than two months into the new year, Airbnb already sees strong service demand. The company highlighted its three strategic priorities for 2023 in the shareholder letter. Firstly, Airbnb plans to popularize hosting by creating more awareness and providing better tools for Hosts. It further wants to improve its services using feedback from guests and Hosts. Finally, Airbnb wants to “expand beyond the core” by working on the bedrock of future growth.
After closing up 3.82%, Airbnb stock is up 9.95% in after-hours trading. The company has grown more than 41% since the year started and added 15.74% in the last three months. ABNB has increased 19.54% over the past month and spiked nearly 4% in the last five days.