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Airbnb warned on Tuesday that more cautious US consumers would weigh on sales in what is normally its peak quarter, in the latest sign of how the impact of faltering demand is being felt by companies across the economy.
The home rental platform’s revenue for the current period — which includes the summer holiday season — is expected to register between $3.67bn and $3.73bn, below analyst expectations for $3.84bn.
That marks a deceleration in year-on-year sales growth, to 8-10 per cent compared with 11 per cent in the three months to June 30.
The peak summer season will be marked by a “moderation” in the number of nights and experiences booked compared to the latest quarter, with “some signs of slowing demand from US guests”, Airbnb said.
Globally, Airbnb said last-minute bookings from more cautious consumers less willing to make long-term plans were also ticking up.
Shares in Airbnb have slipped by almost 10 per cent in the past 12 months, and sank 15 per cent in after-hours trading following the earnings release.
The company has worked in recent quarters to perfect its core service and reaccelerate growth after the pandemic when travel curbs and lockdowns upended the business.
Looking ahead, Airbnb has outlined ambitions to expand beyond the core accommodation market to adjacent travel and holiday services.
Chief executive Brian Chesky said the company would launch a new “co-hosting marketplace” in October, which would connect people with free homes but do not have the time to host and vice versa in order to “unlock new inventory”.
From next year, Airbnb would also launch new products and services annually, and focus on being able to support the “top 1,000 events in the world” such as international sporting events and festivals, he added.
Longer term, the advent of generative artificial intelligence would allow Airbnb to become “more than a search box” and more of a “travel concierge” that could learn a user’s preferences and inspire travel itineraries, Chesky added.
Earlier on Tuesday, ride-hailing group Uber said it had not yet felt the impact of a weaker US consumer and that it expected its business to remain resilient.
But a growing number of companies, as well as economists and investors, have pointed to signs of more muted consumer spending in the US, with impacts for many global businesses.
In the latest quarter, Airbnb beat sales estimates, with its revenue rising 11 per cent year on year to $2.75bn compared with analyst forecasts for $2.74bn.
Growth was slower than the 18 per cent pace recorded at the start of the year, largely due to the timing of Easter and the leap day that fell in the first quarter, the company said.
Higher sales came as holidaymakers booked more nights and experiences globally, which totalled 125.1mn in the quarter. Airbnb said the average daily price of bookings rose “modestly”.
Adjusted earnings before interest, tax, depreciation and amortisation in the present quarter are expected to be about $1.83bn, below forecasts for around $2bn.
That still marks a quarterly uptick in Airbnb’s adjusted ebitda margin, however, which it has said it intends to boost to support investment.
Chief financial officer Ellie Mertz said the company would be upping its marketing investments in the second half of the year to help drive growth in less penetrated international markets.
Net income slipped 15 per cent to $555mn, below analyst forecasts for more than $600mn. Airbnb said that was primarily the result of an increase in income taxes and in its future tax rate, a change it had expected.
Adjusted ebitda of $894mn beat forecasts for $863mn, while the combined value of all bookings in the period rose 11 per cent to $21.2bn.
