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Airbnb shares tumbled more than 8% premarket on Thursday after weak forecasts for the second quarter stoked investor fears about slowing growth at the vacation rental firm and took the shine off a strong quarterly profit beat.
The Easter holiday occurring in the first quarter rather than the second and currency-exchange impacts were partly to blame for Airbnb projecting current-quarter revenue below lofty Wall Street estimates.
It also forecast the growth rate of room nights booked would be relatively flat on a sequential basis, but the company's average daily rate is expected to be modestly higher year-over-year.
Moderating leisure travel demand in the U.S. has also been a concern for investors.
"Airbnb failed to deliver a beat/raise on nights, which we believe was necessary to ease concerns about slowing growth and risk of downside to consensus estimates for accelerating growth in (the second half of 2024 and in 2025)," Jefferies analysts said.
According to BTIG analysts, Airbnb's forecast implied nights booked of about 125 million to 127 million in the second quarter. That compared with consensus estimates of 129.2 million, LSEG data showed.
"While Airbnb topped the Q1 guide, it was shy of more aggressive buyside expectations in the quarter and the Q2 outlook," BTIG's Jake Fuller wrote in a client note.
Shares of Airbnb, which have gained 16% so far this year, were trading at $144.49 before the bell. They were trading about 33.31 times their forward profit estimates, compared with Booking Holdings' 19.40 multiple.
(Reporting by Deborah Sophia and Kannaki Deka in Bengaluru; Editing by Devika Syamnath)