ABNB: Airbnb Scores First-Ever Q1 Profit but Shares Drop 12% on Weak Guidance

The accommodation platform expects to struggle with lower numbers of nights and experiences booked in the current quarter.

• Airbnb reported its first-ever Q1 profit yesterday but failed to entice investors with its forward-looking guidance. The provider of short-term stay picked up net profit of $117mn for the March quarter, up from a net loss of $19mn in the year-ago trimester. Revenue came in at $1.8bn, up 20% year on year.
• The solid financial results were overshadowed by the company’s dim projections for its second-quarter performance. Airbnb’s growth outlook is expected to stumble upon “unfavorable” conditions that may lead to less nights booked. Still, revenue is forecast to grow by at least 12% to $2.35bn.
• Airbnb stock ABNB dropped roughly 12% in late trading. Year-to-date, however, shares of the company have soared just under 50%, largely making up for its previous-year loss of 48%. Airbnb’s market cap is now $80bn – well above its IPO valuation of $47bn, or $68 a share.