Shares of Airbnb (ABNB) are down 14% after the company issued weaker-than-expected forward guidance and provided a cautious outlook for the current second quarter.
The weak guidance comes despite Airbnb delivering first-quarter earnings that beat Wall Street estimates on both the top and bottom lines.
The home-sharing and rental company reported earnings per share (EPS) of $0.18 U.S. versus $0.09 U.S. that was expected among analysts.
Revenue for Q1 of this year totaled $1.82 billion U.S. compared to $1.79 billion U.S. that was expected, according to Refinitiv data.
The results swung Airbnb to a net profit of $117 million U.S. in Q1 from a net loss of $19 million U.S. in the year-earlier quarter.
While Airbnb said it had a strong start to the year, the company warned that second-quarter comparisons would be difficult.
The company forecast second-quarter revenue of $2.35 billion U.S. to $2.45 billion U.S. Analysts polled by Refinitiv were expecting Q2 revenue of $2.42 billion U.S.
Airbnb added that its average daily rates were flat in Q1 compared to a year ago at $168 U.S., though active listings on its platform increased 18% from a year ago.
Prior to the current downturn, Airbnb’s stock had increased 9% over the past 12 months to $127.07 U.S. per share.
