Airbnb topped estimates in the latest quarter and reported its first profitable year. The company also gave a favorable first-quarter outlook, citing strong travel demand.

Closing Bell

Airbnb Sees Earnings Beat Amid Strong Travel Demand

All right. We do have an earnings alert. Airbnb results crossing the tape, look at the stock popping in the after hours double digits. So let's get straight to our senior reporter Michelle Castillo Leo with more Michelle, that's a huge meat on the top and bottom line for Airbnb. They came in at 48 cents. Remember that infinitive analysts estimate was just 25 cents. Also revenue beating at 1.9 billion versus the estimate of 1.86 billion. This is the first profitable year for Airbnb, but why we're really Seeing shares pop because they have a was a huge beat on guidance for the first quarter of 2023. Airbnb believes that travel is back and it's back in a big way. So they are expecting revenue in the first quarter of Q1 of 2023 coming at 1.75 billion to 1.82 billion. The refinitiv estimate was only 1.68 billion across the board. They're seeing that travel is returning to all different regions. They also are trying to make ways for it to be easier to understand pricing earlier. They got rid of a lot of those additional fees just are going to fold it into the price that you pay when you check out those additional fees usually included cleaning or maybe some surprise costs that people might not have known about and they're also making it a little easier to onboard new houses because they're gonna have to increase that stock at this, that supply at this time if they want to continue to keep growing. Okay so Airbnb you mentioned indicating that it seems travel is back, Michelle any sort of nuggets, additional nuggets that this company is siding to show that travelers are willing to spend even amid high prices. You know Earlier I was looking at that U. N. Study that said that travel has really returned in the a little bit. It hasn't bounced back to 29 T. Levels but mostly in the Middle East and the european markets. Airbnb also mentioned that they really haven't seen their seeing slight returns in asia pacific regions. But it has don't come back as much as the other countries. The other thing that I thought was interesting is that they noted that while cross border travel has increased 49% year over year and high urban density nights booked grew 22% year over year. It's still less of a percentage of their overall bookings than it was pre pandemic. So let's take that cross border travel. It was only 44% of all bookings in Q. Four of 2022 versus 47% in Q. Four of 2019. So it shows a lot of people are still traveling domestically. Also you see things similar things with high density urban areas. People are looking for more rural bookings overall for Airbnb. They are saying that one thing that is saying is that people are traveling for longer if they do travel gross nights booked in Q 4 2022 for more than a week. Were 40% higher than Q four of 2019. So yes, the return to work is affecting a lot of us. But for overall Airbnb is saying there's still enough people to want to do those long term stays in different countries. I think seasonality might have played a factor here too, right? Because this quarter I believe would have covered the holidays. I'm sure a busy time, thankfully no Macron outbreak like we saw in 2021 but any sort of insight Michelle as to what seasonality might mean for this current period if it covers spring break and what that might mean for Airbnb results. You know, they did they have that huge guidance that they have that huge beat on guidance again, pointing out that one 0.68 billion was what the street was expecting. Their friend of estimate. They said they're going to come in a little higher at that 1.75 billion to 1.82 billion. Also, they are, they did say that they do feel that more countries are opening their borders. They did talk a little bit about china and a lot of those restrictions being lifted. So this quarter, they're very optimistic. They do think that things are returning back to normal. All right, Michele Castelli o our senior reporter here at cheddar news. Michelle thanks for the breakdown. The stock again up 11% after hours, investors liking this for sure.