Airbnb’s Revenue Tops Expectations, But Profits Fall Short

Airbnb (ABNB) reported third-quarter revenue that beat expectations, but profits fell short. 

The vacation rental marketplace saw revenue grow 10% year-over-year to $3.73 billion, ahead of the analyst consensus from Visible Alpha. However, its net income came in at $1.37 billion or $2.13 per share, down from $4.37 billion or $6.63 per share a year earlier and missing expectations. 

Nights and Bookings Growth Slows

The company’s Nights and Experiences Booked came in at 122.8 million, up 8% from a year ago. This comes after the company said it expected a “sequential moderation” in growth in the second quarter, when Nights and Experiences saw 9% growth.

For the current quarter, Airbnb said it expects Nights and Experiences growth to reaccelerate and forecast revenue between $2.39 billion to $2.44 billion, compared to Street expectations of $2.42 billion.

Shares of Airbnb rose before giving up most gains in extended trading Thursday following the release. They were up 8% for the year through Thursday’s close.