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Vacation rental company Airbnb ABNB-Q reported a higher quarterly profit on Wednesday but forecast second-quarter revenue below Wall Street expectations, sending shares of the company down 7% after the bell.

Accommodation companies in the first quarter have seen the demand for travel in regions outside of North America boost earnings as travel accelerates in Asia-Pacific and Latin America.

Airbnb’s first-quarter revenue rose 18% year-over-year to $2.14 billion. However, the company forecast second-quarter revenue between $2.68 billion and $2.74 billion, below analysts’ estimates of $2.74 billion, due in part to currency exchange rates and the timing of Easter.

The holiday was beneficial to the first quarter, but may weigh on earnings in the second quarter, the company said.

Nights and experiences booked in the first quarter increased 9.5% year-over-year to about $133 million driven by a 21% and 19% growth in bookings in Asia-Pacific and Latin America, respectively. The company said bookings in North America “slightly decelerated” during the quarter.

The San Francisco-based company reported net income of $264 million, or 41 cents per share, for the quarter ended March, compared with $117 million, or 18 cents per share, during the same period in 2023.

The average cost per night in an Airbnb or average daily rate was $173 in the reported quarter, a 3% rise compared to the year prior. The company saw an increase in shorter stays and bookings of entire homes which drove higher margins.

Active listings on the platform grew 17% year-over-year with Asia and Latin America leading the additions.

Looking ahead to the summer, Airbnb said it expects year-over-year revenue growth to accelerate in the third-quarter due in part to travel demand centred around international events like the Olympics and Euro Cup.

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