Airbnb to Report Q1 Earnings: What's in Store for the Stock?

Airbnb ABNB is scheduled to release first-quarter 2025 results on May 1.

ABNB expects first-quarter 2025 revenues between $2.23 billion and $2.27 billion, suggesting a year-over-year increase of 4-6%, or 7-9% excluding the impacts of foreign exchange fluctuations.

The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $2.26 billion, indicating growth of 5.61% year over year.

The consensus mark for earnings is currently pegged at 25 cents per share, unchanged over the past 30 days. The figure indicates a 39.02% decline from the year-ago quarter’s reported figure.

Airbnb, Inc. Price and EPS Surprise

Airbnb, Inc. price-eps-surprise | Airbnb, Inc. Quote

ABNB has a mixed earnings surprise history. The company’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters and beat the other two, resulting in an average surprise of 23.94%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Consider for ABNB’s Q1 Earnings

Airbnb experienced an acceleration in Nights and Experiences Booked throughout the fourth quarter of 2024, driven by strong growth in first-time bookers, with all regions seeing increased momentum, led by the Asia Pacific and Latin America. Airbnb expects year-over-year growth in Nights and Experiences Booked for the first quarter of 2025 to remain relatively stable compared with that reported in the first quarter of 2024.

Airbnb anticipates Average Daily Rates (ADR) to dip on a year-over-year basis due to foreign exchange headwinds. Excluding the impacts of FX, a modest year-over-year increase in ADR is anticipated. 

Over the past few years, ABNB has rolled out more than 535 features and upgrades, including the launch of Guest Favourites to highlight top-rated listings and the Co-Host Network, which now supports nearly 100,000 listings and helps homeowners connect with experienced local managers. The company is likely to have benefited from this continuous momentum.

Airbnb has enhanced search functionality and merchandising, making it easier for users to discover the right stays. As a result, the company has reported higher conversion rates and expects these product-driven improvements to continue supporting growth into 2025. This trend is expected to have persisted in the to-be-reported quarter, benefiting top-line growth.

ABNB is prioritizing mainstream adoption of hosting, enhancing its core service, and expanding beyond accommodations. Progress in these areas is anticipated to have continued in the quarter under review.

However, in the first quarter of 2025, Airbnb expects adjusted EBITDA and its margin to decline due to one-time calendar factors and currency headwinds. Without these impacts, the margin would remain flat year over year. Airbnb is expected to have suffered from increased operational costs, potentially impacting its bottom line.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.

ABNB currently has an Earnings ESP of +7.39% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:

Roblox RBLX has an Earnings ESP of +5.21% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Roblox shares have gained 14.8% year to date. Roblox is set to report its first quarter 2025 results on May 1.

Hilton Grand Vacations HGV currently has an Earnings ESP of +3.59% and a Zacks Rank #3.

Hilton Grand Vacations shares have declined 12.1% year to date. HGV is set to report its first quarter 2025 results on May 1.

Birkenstock Holding PLC BIRK presently has an Earnings ESP of +2.20% and a Zacks Rank #3.

Birkenstock Holding PLC shares have declined 9.3% year to date. BIRK is set to report its second quarter fiscal 2025 results on May 15.

 

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This article originally published on Zacks Investment Research (zacks.com).

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