First-ever yearly profit for Airbnb. Breaking USA Business News now.
The short-term rental company’s first-ever annual profit was a significant accomplishment that coincided with Airbnb’s fourth-quarter results release.
Revenue and profitability that above Wall Street projections were driven by customers’ willingness to travel, which remained robust despite persistent inflation.
According to the firm, a strong dollar encouraged more Americans to travel abroad and increased tourism in city centres.
However, it does anticipate that as travellers look for less expensive destinations and test out alternative services, pricing pressure will have an impact on overnight rates in 2023.
Following a brief pause, travellers returned to larger cities and crossed international borders, according to Airbnb, which reported that guest demand remained solid throughout the last year.
Cities have traditionally been one of Airbnb’s strongest geographic segments.
Before the pandemic, this was Airbnb’s main source of income, CEO Brian Chesky stated on a conference call with investors.
Additionally, consumers have been able to spend more on trips thanks to a strong U.S. dollar, allaying concerns about discretionary spending.
In comparison to the $1.69 billion Wall Street anticipated, the company said it expects Q1 revenue to be between $1.75 billion and $1.82 billion.
The company reported that free cash flow increased by 49% year over year to USD 3.4 billion while adjusted EBITDA increased to USD 2.9 billion.
“2022 was another fantastic year.”
Due to an increase in international travel in the fourth quarter compared to the prior years, Airbnb Inc. recorded its first annual profit last year.
According to a story by The Wall Street Journal, Airbnb claimed that the robust vacation demand was advantageous to it despite concerns about high inflation and a possible recession.
The vacation rental business posted a $1.9 billion profit in 2022 after suffering a $352 million loss the previous year.
The company’s total annual revenue increased by 40% to $8.4 billion.
According to the survey, Americans used a strong dollar to their advantage while travelling overseas, and intracontinental travel inside Europe increased.