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Airbnb shares fall after a big jump

Airbnb’s stock dropped more than 4% on Thursday after the firm released its second-quarter earnings. The business beat Wall Street’s revenue and bookings projections but warned about the Covid delta version’s projected volatility. Here’s how the company fared: Earnings: 11 cents per share loss; Revenue: $1.34 billion, compared to Refinitiv’s projection of $1.26 billion.

After the tourism sector collapsed a year ago due to the Covid-19 outbreak, the company reported 83.1 million nights and experiences booked, up 29 percent from the first quarter and a stunning 197 percent year over year. Analysts polled by StreetAccount predicted 79.2 million booked nights and occasions. Revenue increased by approximately 300 percent year on year to $1.34 billion.

Airbnb’s sales and marketing spending increased 175 percent year on year in the second quarter, reaching $315 million. The business blamed the increase in marketing costs on its Made Possible by Hosts campaign. Airbnb warned in February that it expected its sales and marketing expenses to be higher as a percentage of revenue in the first half of 2021 than in the second half.

Companys’ gross and loss

Gross booking value, which Airbnb uses to measure host revenues, service fees, cleaning fees, and taxes, was $13.4 billion, up 320 percent year over year and higher than the $11.56 billion FactSet average.

Airbnb’s net loss for the quarter was $68 million, a decrease of more than 88 percent from the previous year’s net loss of $575.6 million. Its average daily rate increased to $161 from $160 in the last quarter, reflecting increased client spending on houses and experiences. This figure increased by 41% year over year.

Expectations of revenue

Airbnb expects delta to influence travel behavior, specifically how frequently and when guests book and cancel. Although the firm expects the third quarter to achieve its highest quarterly revenue on record, it expects Q3 nights and experiences booked to be lower than in Q2 and Q3 2019.

Combination of fewer bookings for the autumn, simply due to the nature of certain seasonality and any impact potentially on Covid concerns, Airbnb CFO Dave Stephenson said on a conference call with analysts. According to Airbnb, vaccine success and the containment of new strains would influence the company’s performance in the fourth quarter. The company stated in its shareholder letter that we do not yet know how willing people will be to go in the fall versus summer.

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