Airbnb’s (NASDAQ:ABNB) Q3 Earnings Results: Revenue In Line With Expectations

• Revenue: $4.10 cardinal vs expert estimates of $4.08 cardinal (9.7% year-on-year growth, successful line)

• EPS (GAAP): $2.21 vs expert expectations of $2.32 (4.8% miss)

• Adjusted EBITDA: $2.05 cardinal vs expert estimates of $2.04 cardinal (50.1% margin, 0.7% beat)

• Revenue Guidance for Q4 CY2025 is $2.69 cardinal astatine the midpoint, astir successful enactment with what analysts were expecting

• Operating Margin: 39.7%, down from 40.9% successful the aforesaid 4th past year

• Free Cash Flow Margin: 32.9%, up from 31.1% successful the erstwhile quarter

• Nights and Experiences Booked: 134 million, up 11.2 cardinal twelvemonth connected year

• Market Capitalization: $75 billion

Founded by Brian Chesky and Joe Gebbia successful their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, chiefly homestays.

Examining a company’s semipermanent show tin supply clues astir its quality. Even a atrocious concern tin radiance for 1 oregon 2 quarters, but a top-tier 1 grows for years. Luckily, Airbnb’s income grew astatine a coagulated 14.2% compounded yearly maturation complaint implicit the past 3 years. Its maturation surpassed the mean user net institution and shows its offerings resonate with customers, a large starting constituent for our analysis.

This quarter, Airbnb grew its gross by 9.7% twelvemonth connected year, and its $4.10 cardinal of gross was successful enactment with Wall Street’s estimates. Company absorption is presently guiding for a 8.5% year-on-year summation successful income adjacent quarter.

Looking further ahead, sell-side analysts expect gross to turn 8.5% implicit the adjacent 12 months, a deceleration versus the past 3 years. This projection is underwhelming and suggests its products and services volition look immoderate request challenges. At slightest the institution is tracking good successful different measures of fiscal health.

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As an online question company, Airbnb generates gross maturation by expanding some the fig of stays (or experiences) booked and the committee charged connected those bookings.