"Airbnb delivered $4.10B in revenue for the third quarter, edging past the $4.08B consensus estimate. That's the good news. The bad news: adjusted EPS of $2.21 fell short of the $2.32 estimate by $0.11, a 4.7% miss. Net income essentially flatlined year over year, rising just 0.44% to $1.37B despite revenue climbing 9.86% to $4.10B from $3.73B a year ago."
"The disconnect is telling. Bookings and nights booked both grew solidly, but margin expansion didn't follow. That's the cost of growth investments. Management is pouring money into international expansion, AI integration, and flexible payment options like "Reserve Now, Pay Later." Those bets are working operationally. They're just not flowing through to the bottom line yet."
"Gross Booking Value surged 14% year over year to $22.9B. Nights and Seats Booked climbed 9% to 133.6M. Operating cash flow jumped 25.79% to $1.36B. Free cash flow came in at $1.35B. These numbers reveal a business firing on all cylinders operationally, even if profitability growth has stalled. I'd keep an eye on the cash flow story here. It's the real strength of the quarter."
Airbnb reported Q3 revenue of $4.10B, slightly above the $4.08B consensus, while adjusted EPS was $2.21, missing the $2.32 estimate by $0.11. Net income rose 0.44% year over year to $1.37B even as revenue increased 9.86%. Gross Booking Value grew 14% to $22.9B and nights and seats booked rose 9% to 133.6M. Operating cash flow increased 25.79% to $1.36B and free cash flow was $1.35B. Management is investing in international expansion, AI, and flexible payment options, and authorized a $6.6B Class A buyback.
Read at 24/7 Wall St.
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