Airbnb (ABNB) Stock: International Markets Fuel Revenue Growth as Shares Jump

TLDR

• Airbnb posted Q3 revenue of $4.10 billion, up 9.7% year-over-year, with gross bookings jumping 14% to $22.9 billion.
• The company’s expansion markets in Latin America and Asia Pacific grew twice as fast as core markets like the U.S., Canada, and UK over the past year.
• Latin America showed the fastest growth in nights and seats booked, helped by an interest-free payment plan launched in Brazil.
• Q4 revenue forecast of $2.66 billion to $2.72 billion came in above Wall Street estimates of $2.67 billion.
• Earnings per share reached $2.21, up from $2.13 in the same quarter last year.

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Airbnb reported third-quarter revenue of $4.10 billion on Thursday. The figure represents a 9.7% increase from the same period last year.

The vacation rental company also beat expectations with its fourth-quarter forecast. Revenue guidance of $2.66 billion to $2.72 billion topped Wall Street’s $2.67 billion estimate.

Shares jumped 5.5% in after-hours trading following the announcement. The stock response reflected investor approval of the company’s international growth strategy.

Airbnb, Inc., ABNB

Gross bookings reached $22.9 billion during the quarter. This marked a 14% increase compared to the previous year.

Per-share profit came in at $2.21. Last year’s third quarter saw earnings of $2.13 per share.

International Markets Lead Growth

The company’s expansion markets grew at twice the rate of core markets over the past year. Core markets include the United States, Australia, Canada, the United Kingdom, and France.

Latin America posted the fastest growth in nights and seats booked. This metric combines stays and activities reserved through the platform.

Brazil contributed to the Latin American surge. The company launched an interest-free payment plan in the country during the quarter.

Japan saw domestic travel bookings rise 27% during the period. India recorded a 50% increase in first-time users on the platform.

Airbnb has customized its platform for regional audiences. The changes include new payment options and local marketing campaigns.

North American Market Shows Modest Gains

North America posted mid-single digit growth in nights booked. The increase slightly exceeded the previous quarter’s performance.

The company rolled out a “Reserve Now, Pay Later” option in the U.S. market. This feature encouraged travelers to book stays further in advance.

American consumers have pulled back on travel spending recently. Persistent inflation and economic uncertainty have affected booking behavior.

The company launched a new “services” section but did not disclose booking numbers. The section offers catering, photography sessions, and spa treatments.

CEO Brian Chesky addressed the timeline for the services feature. He said it could take three to five years for experiences and services to become material to the business.

Net income for the quarter reached $1.374 billion. This compared to $1.368 billion in the same quarter of 2024.

Cash and cash equivalents stood at $7.528 billion at quarter end. Total assets increased to $23.064 billion.

Current liabilities rose during the period. The increase came primarily from the current portion of long-term debt.

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