Airbnb shares jumped as much as 5% in after-hours trading Thursday after the home-sharing giant delivered a solid third-quarter earnings beat, posting $4.10 billion in revenue against analyst expectations of $4.08 billion. The company's upbeat fourth-quarter guidance and record-breaking adjusted EBITDA of $2.1 billion signal continued momentum in the travel recovery, even as the broader tech sector faces economic headwinds.
Airbnb just delivered the kind of earnings report that Wall Street loves to see. The home-sharing platform posted third-quarter revenue of $4.10 billion, edging past analyst estimates of $4.08 billion and marking a solid 10% jump from last year's $3.73 billion. But it wasn't just the top-line beat that sent shares soaring up to 5% in extended trading - it was the company's confident outlook and record-breaking profitability metrics that really caught investors' attention.
The numbers tell a compelling story of a platform that's hitting its stride. Airbnb reported 133.6 million nights and seats booked during the quarter, beating StreetAccount's estimate of 131.75 million and representing a healthy 9% year-over-year increase. More importantly, gross booking value - the total dollar amount flowing through the platform including host earnings, service fees, and taxes - jumped 14% to $22.9 billion, well above the $21.9 billion analysts were expecting.
What's particularly impressive is how Airbnb is converting that growth into bottom-line results. The company achieved adjusted EBITDA of $2.1 billion, which it proudly noted as its highest quarterly figure ever. Net income came in at $1.374 billion, or $2.21 per share, up from $1.368 billion a year earlier, though slightly below the $2.34 per share that analysts had penciled in.
CEO Brian Chesky and his team are clearly feeling confident about what comes next. For the fourth quarter, Airbnb guided for revenue between $2.66 billion and $2.72 billion, with the midpoint essentially matching analyst expectations of $2.67 billion. In a travel industry where seasonal patterns can make or break quarterly results, this guidance suggests the company sees sustained demand heading into the traditionally slower winter months.
The quarter wasn't just about financial metrics - Airbnb continued rolling out product improvements that could drive future growth. The company introduced enhanced maps, updated cancellation policies, and a reserve-now-pay-later option that makes booking more flexible for cash-conscious travelers. Perhaps most significantly, the platform doubled down on AI integration, with Chesky telling last month about the company's ambitious plans to weave artificial intelligence throughout the user experience.
