Airbnb Inc has recorded a 52% increase in gross bookings for the first quarter of 2021.
Wall Street Expectations Beaten
Airbnb beat Wall Street expectations for first-quarter gross bookings and revenue, as speedy COVID-19 vaccinations and easing restrictions encouraged more people to check into its vacation rentals.
Gross bookings jumped 52% to $10.29 billion in the quarter, easily beating analysts' estimates of $6.93 billion.
"For guests aged 60 and above in the US, who were amongst the first groups to benefit from vaccine rollouts, searches on our platform for summer travel increased by more than 60% between February and March 2021," Airbnb said.
Second Quarter Revenue Expectation
The San Francisco-based company is expecting second quarter revenue to be similar to 2019 levels, and said that the return of urban and cross-border travel is likely to underpin growth over the coming quarters.
Airbnb is also set to benefit from demand for longer stays and a shift to traveling in groups by business travelers, its CEO, Brian Chesky, said on a post-earnings call.
Weathered The COVID-19 Pandemic Better Than Rivals
The company has weathered the COVID-19 pandemic better than rivals as people turned to its offering of larger spaces and locations away from major cities in the era of social distancing.
It recorded a surge in bookings in the UK after the government laid down plans in February to exit lockdown, while the easing of travel restrictions in France earlier this month also lifted demand.
However, Airbnb said that it is too early to predict if the recovery momentum will continue at the same pace in the second half of 2021.
Revenue And EBITDA
Its revenue rose by 5.4% to $886.9 million in the first quarter ended March 31, exceeding estimates of $714.4 million, according to Refinitiv IBES data.
Adjusted loss before interest, taxes, depreciation and amortisation (EBITDA) narrowed to $59 million, from $334 million a year earlier, largely due to cost cuts.
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