Airbnb (ABNB) stock is down about 3% after the home rental company issued inline financial results for this year’s first quarter and offered disappointing forward guidance.
The San Francisco-based company issued earnings per share (EPS) of $0.24, which matched the consensus forecast on Wall Street. Revenue in the January through March period totaled $2.27 billion, which was slightly ahead of the $2.26 billion estimate among analysts who track the company’s progress. Sales were up 6% from a year earlier.
In addition to the inline financial results, Airbnb provided underwhelming guidance for the year’s second quarter, saying that it expects revenue of $2.99 billion to $3.05 billion, or $3.02 billion in the middle of the range. Wall Street had $3.04 billion in revenue penciled in for the company.
In its earnings release, Airbnb said, “In the U.S., we’ve seen relatively softer results, which we believe has been largely driven by broader economic uncertainties.” Notably, management said that they are seeing “softness” in travel from Canada to the U.S. as the neighboring countries engage in a trade war.
Airbnb said that its gross booking value, which measures host earnings, service fees, cleaning fees, and taxes, increased 7% year-over-year to $24.5 billion, which was inline with estimates. Nights and experiences booked rose 8% from a year ago and totaled 143.1 million. That fell short of the 143.4 million estimated among analysts.
Excluding North America, Airbnb said that nights and experiences grew 11% from a year ago. Nights booked by Canadian guests visiting Mexico jumped 27% from a year ago in March. Airbnb executives said that they expect nights and experiences booked to “moderate” in the current quarter. The company said that it has now removed 450,000 listings on its platform since updating its host quality system beginning in 2023.
ABNB stock has declined 6% this year.