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Airbnb Q3 Earnings Report: What Investors Should Expect

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Airbnb Q3 Earnings Report: What Investors Should Expect

On November 1, Airbnb (ABNB) is set to release its third-quarter 2023 financial results. With revenues expected to be between $3.3 billion and $3.4 billion, representing a 14-18% year-over-year growth, investors eagerly anticipate the numbers. The Zacks Consensus Estimate for revenue stands at $3.37 billion, reflecting a 16.9% increase compared to the same period last year. Similarly, the estimated earnings per share (EPS) is $2.06, showing a 15.1% growth from the previous year.

Airbnb has consistently beaten the Zacks Consensus Estimate for earnings over the past four quarters, with an average beat of 52.6%. Despite this positive track record, our model does not predict an earnings beat for this quarter. With an Earnings ESP of -10.04% and a current Zacks Rank of #3, Airbnb faces challenging odds.

Key Factors to Consider

Airbnb’s third-quarter success heavily relies on several key factors. The momentum in Nights and Experiences booked, particularly in the Asia-Pacific region, is expected to contribute significantly to the company’s performance. The estimated growth rate for Nights and Experiences Booked is 13% compared to the previous year.

In addition, the increasing Average Daily Rate, driven by foreign exchange, larger homes, and geographic mix, is expected to positively impact Airbnb’s financials. This, coupled with the rising demand for international travel and strong supply growth in all regions, is likely to drive growth in gross booking value (GBV). The Zacks Consensus Estimate for GBV is $17.97 billion, a 15.2% increase from the year-ago quarter.

However, Airbnb faces tough competition in the online travel market, which could have a negative impact on its performance. The company also grapples with macroeconomic challenges that could pose further concerns.

Other Companies to Watch

For investors looking for other opportunities in the same space, there are several companies worth considering that have the potential to beat earnings expectations in their upcoming quarterly results.

  • GoDaddy (GDDY) – Earnings ESP: +14.09%, Zacks Rank #1
  • BILL Holdings (BILL) – Earnings ESP: +4.42%, Zacks Rank #3
  • Fastly (FSLY) – Earnings ESP: +17.24%, Zacks Rank #2

These companies have the right combination of elements to potentially outperform earnings forecasts.

Conclusion

Airbnb’s Q3 earnings report is highly anticipated by investors. With expectations of strong revenue growth and positive performance indicators, the company is poised for success. However, it will face stiff competition and macroeconomic challenges. Investors should closely monitor Airbnb’s financials to make informed decisions.