Airbnb Inc reported strong third-quarter profit growth and a beat on revenue estimates , as the company continues its recovery from Covid-19 and travel returns as vaccinations efforts ramp up worldwide.
The revenue topped Wall Street expectations and the short-term home rental company said.Revenue grew 67% to $2.2 billion in the third quarter, Airbnb said in a statement. Analysts forecast $2.07 billion, according to data compiled by Bloomberg. Net income of $834 million far exceeded Wall Street’s expectation of $456.2 million. The shares jumped as much as 12%, the most since February, to $200.52.
International travel search volumes have been rising as countries, including the United States, start to ease pandemic-related restrictions for fully vaccinated visitors.
Easing lockdowns have helped Airbnb recover from a steep drop in business early last year as leisure-seeking domestic travelers booked homes away from major cities. It now expects cross-border travel to further boost its revenue.
"We are seeing recovery in both longer-distance and cross-border travel this year, while domestic and short-distance travel continue to be more popular than 2019 levels," the company said in a statement.
The vacation rental said the recovery was dominated by North America and Europe - regions with higher average daily rates. It rose 15% to about $149 in the third quarter from a year earlier.
For the Thanksgiving week in the United States, Airbnb said as of Sept. 30, nights booked are 40% higher than same period in 2019.
With the pandemic causing a permanent step up in the lodging industry mix, analysts expect Airbnb to continue to grow in the alternative accommodation market, in which it has a more than 50% share among global online travel agents.
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