Airbnb Inc (ABNB), a platform for booking accommodation and entertainment around the world, fell 4% after trading closed on Thursday, even though the company posted better-than-expected results for the second quarter. ABNB stock began trading on the NASDAQ on December 10, 2020, and are down more than 30% from their high of February 11, but are up 11% over the past three months.
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Airbnb Inc (ABNB) lost $0.11 per share compared with the average analyst estimate of $0.41. During the quarter, the company lost $68 million, a significant drop from the $575.6 million loss for the previous year. The revenue increased 300% from the previous year to $1.34 billion, exceeding analysts’ expectations of $1.26 billion.
ABNB reported 83.1 million booked night and activity stays, up 29% from the first quarter and 197% more than a year ago when the travel industry collapsed amid the Covid-19 pandemic. Analysts had predicted 79.2 million nights and entertainment bookings.
The company’s marketing expenditures increased significantly during the quarter, growing 175% year-over-year to $315 million. Airbnb warned in February that marketing spending in the first half of 2021 would be higher than in the second.
Airbnb’s stock dropped not due to an increase in marketing spending. The fact is that the company has warned its investors that the third quarter is seasonal weaker since it includes the month of September.
Airbnb Inc (ABNB) executives are also concerned about the impact of the COVID-19 Delta outbreak on third-quarter financial results. AirBnb did not provide accurate forecasts for this quarter and the whole year, citing uncertainties.
Airbnb Inc (ABNB) said progress in vaccinations and the containment of new strains of the virus will affect its fourth-quarter results. Airbnb is capitalizing on the trend of teleworking from home by offering long-term rentals to these customers.
