Vacation rental Airbnb Inc. (ABNB-Q) on Tuesday forecast third-quarter revenue above estimates and announced a US$2-billion share buyback, its first since going public, as pandemic-weary travellers make the most of the summer.
The San Francisco-based company expects current-quarter revenue between US$2.78 billion and US$2.88 billion, higher than analysts’ estimates of US$2.77 billion, according to Refinitiv IBES.
Travellers across Europe and North America have made early bookings to visit their favourite tourist spots both domestic and international, accelerating demand for the company’s long-term vacation rentals.
Airbnb, which tweaked its service in May to facilitate longer rentals, said long-term stays increased nearly 25 per cent from a year ago and by almost 90 per cent from the second quarter of 2019.
Marriott International Inc had also benefited from longer hotel stays and group travel that helped it trump Wall Street targets for quarterly revenue and profit.
Easing COVID restrictions and border reopenings spurred cross-border travel, encouraging hosts to charge more and boosting Airbnb’s average daily rates up 1 per cent to US$164.
The company’s forecast for third-quarter bookings was at par with growth in the second quarter.
It reported a net profit of US$379 million, or 56 cents per share, compared with a loss of US$68 million, or US$11 per share, a year earlier.
Revenue rose 58 per cent to US$2.10 billion, almost in line with estimates of US$2.11 billion.
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