The leading short-term rental platform told investors that its revenue share grew 11% in the second quarter of this year to $2.75 billion. Total passenger bookings in the three months were 125.1 million.
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Airbnb continued to dominate the short-term rental market in the second quarter, with total revenue growing 11% to $2.75 billion due to continued strong travel demand and international expansion, according to its second-quarter financial report.
The company reported net profit of $555 million for the quarter ended June 30.
The company generated a total of $21.2 billion in revenue for itself and the hosts who provide accommodation on its platform, an increase of 11% from the same period last year. Travelers have booked a total of 125.1 million accommodation and activities on the platform.
“We look forward to another record-breaking summer travel season,” Chief Executive Brian Chesky told investors on a conference call.
The company shared some warning signs that may be related to the recent turmoil in the national economy. Travelers are waiting longer to book travel than in recent years, a possible sign of a lack of confidence in the country’s economy, the report said.
“It’s not that consumers won’t necessarily book travel for Thanksgiving or Christmas; it’s that consumers won’t necessarily book travel for Thanksgiving or Christmas. They just haven’t booked yet.
Airbnb executives said they expect “fewer nights” to be booked in the third quarter than in the second quarter.
The prospect spooked investors, sending Airbnb shares down more than 13% in after-hours trading on Tuesday.
Chesky tried to calm investor nerves during a conference call after the market closed. He said the company has achieved high profits while mainly offering one product and having good penetration into five countries. He compared the company’s performance to Apple and Amazon, which at the time were focused on a single product (computers and books). Like those modern giants, Chesky said Airbnb is poised to diversify its offerings over the long term.
Chesky called Airbnb “one of the most profitable organizations in technology.”
Some of that growth comes from the company’s continued focus on expansion both within the U.S. and abroad. The growth was also driven by a 4% rise in North America’s average daily room rate (ADR), or the price of an Airbnb booking. The average daily rate is now $170.
Executives say there is no sign that travelers will seek to book cheaper accommodation.
Airbnb has been looking to expand its workforce and expand its platform offerings in underserved international markets as pandemic restrictions become a thing of the past.
Bookings in Latin America were up 17% this quarter and bookings in Asia were up 19%.
Chesky said that while Airbnb operates in 220 countries, it has only penetrated five countries – The United States, the United Kingdom, France, Canada and Australia, and focusing on expanding into more markets.
The company said it also benefited from major sporting events overseas. For example, more than 400,000 guests stayed at Airbnbs in the Paris area during the Olympics, although the full extent of those numbers won’t be seen until next quarter’s results are released.
The company is driving more users to download and use its apps, reporting a 25% increase in global app downloads this quarter. More than half of all accommodation booked this season were booked through the app.
This is partly due to the company’s release in May of the Icons category, a new set of venues that include replicas of houses from Pixar animated films and more up. Users need to download an app to apply for a free stay at one of the company’s new Icon properties.
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