Airbnb warns of slowing U.S. demand, misses profit targets, shares fall 14% | Wilnesh News

Airbnb The company reported second-quarter earnings that missed analysts’ expectations and warned of signs of slowing demand from U.S. customers, sending its shares down 14% in after-hours trading.

Here’s how the company compares to LSEG’s forecasts for the quarter ending June 30:

• Earnings per share: $0.86, expected $0.92.
• income: US$2.75 billion, compared with US$2.74 billion expected.

Revenue increased by 11% year-on-year. Airbnb reported net income of $555 million, or $0.86 per share, down 15% from $650 million, or $0.98 per share, in the same period last year.

The company forecast third-quarter revenue of $3.67 billion to $3.73 billion, but also warned that it expects year-over-year growth in its accommodations and experiences business to slow compared with the current quarter. The company also warned that “global booking lead times are shortening and demand from U.S. guests is showing some signs of slowing.”

Airbnb said users booked 125.1 million stays and experiences, its highest number ever in the second quarter. “We saw continued growth in all regions compared to the second quarter of 2023, with Asia Pacific and Latin America once again leading the way,” the company said in a letter to shareholders.

The company also said it has removed more than 200,000 low-quality listings since launching its “quality system” more than a year ago.

As the Federal Reserve continues to delay rate cuts, investors are closely watching for signs of consumer stress. Earnings reports from other companies show consumers are already feeling the pain. McDonald’sFor example, the company warned in its most recent earnings report that consumers were feeling “stress” from the economy, with same-store sales down 1%.

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