Airbnb stock jumps after company reports first profitable year and a strong forecast

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Airbnb reported fourth-quarter net income of $319 million, or 48 cents a share, compared with $55 million, or 8 cents a share, in the year-ago period. $ABNB rose immediately after the release of the results and a forecast that exceeded estimates:

Airbnb Inc. on Tuesday reported record fourth-quarter revenue and profit to achieve its first profitable year, and executives provided a first-quarter forecast that exceeded Wall Street estimates despite plans for price cuts.

“All regions saw material growth in 2022 as guests increasingly crossed borders and returned to cities on Airbnb,” executives wrote to shareholders in a letter Tuesday.Airbnb reported fourth-quarter gross bookings of $13.5 billion, compared with analysts’ expectation of $13.6 billion. Nights and experiences booked were 88.2 million, the highest fourth-quarter total ever, with a rebound in Asia-Pacific leading the way, though analysts had expected 89.7 million. The average daily rate was $152.

Adjusted Ebitda for the year was $2.9 billion, exceeding the $2.83 billion analysts were expecting. Free cash flow was $3.4 billion, an increase of 49% year over year. The company ended the year with 6.6 million active listings, which it said is its highest yet.

 

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