ABNB Q3 Earnings Analysis
Airbnb reported third quarter earnings recently the company beat on both revenue and profit expectations. Quarterly revenue came in at $3.40B vs the $3.37B projections, and profit per shares was $2.43, higher than the $2.10 expectations. Despite the earnings beat, the company’s shares didn’t see an influx of buyers, which could be because of the weaker than expected 4th quarter guidance. Airbnb’s guidance reflects revenue between $2.13B and $2.17B, citing the decline in international travel during the final three months of the year due to holidays. The company’s history shows that the majority of their revenue comes from outside the U.S., so their reasoning for the revenue decline is valid.
Even though the company didn’t mean projections, it is still one to consider for the long term. Their price to earnings ratio is currently at 14.47, placing it on the cheaper end of the healthy P/E ratio. Revenue has also grown in a healthy projection year over year for the last six years, but not only is it growing, the company is managing to save capital and have grown their free cash flow reserves to $4.25B. All this is very impressive for a fairly young company and spells a bright future for them.
Going into 2024, we are expecting buyers to take interest in AirBnb. Price target is 140.00+