Airbnb (NASDAQ:ABNB) has announced adjusted earnings of 76 cents per share for the fourth quarter of 2023, surpassing the Consensus Estimate by 13.4%. This marks a significant increase of 58.4% compared to the same quarter last year.

The company reported revenues of $2.22 billion, representing a 17% increase on a reported basis and a 14% increase on an FX-neutral basis year over year. This revenue figure also exceeded the Consensus Estimate of $2.16 billion.

The year-over-year growth was primarily driven by a continuous improvement in Nights and Experiences Booked. Growth in gross nights booked, particularly in high-density urban areas, contributed positively to the results. The increasing demand from first-time bookers and the ongoing recovery in cross-border travel also supported the quarterly performance.

Key Highlights

Nights and Experiences Booked totaled 98.8 million, up 12% year over year, driven by strong performances in all regions, particularly in the Asia Pacific and Latin America.

Gross Booking Value (GBV) reached $15.5 billion, up 15% from the prior-year quarter.

GBV per Night and Experience Booked (Average Daily Rates) grew by 3% year over year to $156.73.

Long-term stays of 28 days or more accounted for 19% of overall gross nights booked.

Gross nights booked in high-density urban areas grew by 11% year over year and represented 51% of total gross nights booked.

Cross-border nights booked increased by 13% year over year, accounting for 44% of total gross nights booked.

Operating Results

Adjusted EBITDA was $738 million, up 46% from the prior-year quarter.

Operations and support costs, product development expenses, and sales and marketing expenses increased by 4.2%, 8.5%, and 3.9%, respectively, year over year.

General and administrative expenses rose significantly to $1.2 billion due to non-recurring tax withholding expenses and lodging tax reserves.

Airbnb reported an operating loss of $496 million for the fourth quarter, compared to operating income of $235 million in the prior-year quarter.

Balance Sheet and Cash Flow

As of December 31, 2023, cash and cash equivalents, and short-term investments amounted to $10.1 billion.

Long-term debt was $1.991 billion.

Net cash provided by operating activities was $63 million for the fourth quarter of 2023.

Airbnb generated a free cash flow of $46 million in the fourth quarter.

Guidance

For the first quarter of 2024, Airbnb expects revenues between $2.03 billion and $2.07 billion, implying year-over-year growth of 12-14% on a reported basis.

The company expects revenues to benefit from the timing of Easter.

The adjusted EBITDA margin is expected to increase year over year.

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