Airbnb, Inc. (NASDAQ: ABNB) shares have advanced more than 17% last trading week, as the company reported better than expected third-quarter results on Thursday. Airbnb’s business continued to grow throughout the third fiscal quarter , and the company’s management expects another EPS beat in the next fiscal quarter.
Airbnb’s best quarter yet
Airbnb reported better than expected third-quarter results on Thursday; total revenue has increased by 67.2% Y/Y to $2.24 billion, which was more than expected, while the GAAP EPS was $1.22 (beats by $0.52).
Revenues have surpassed the third quarter of 2019 by 36%, while the Net income of $834 million was nearly four times larger than a year ago.
This was the best quarter on record for Airbnb, and through the third quarter, volume trends steadily improved each month, driven by the recovery in markets from the pandemic. Brian Chesky, CEO of Airbnb, said:
Q3 was Airbnb’s best quarter yet; our results show that the growing strength of the travel rebound is here, and more people were also interested in hosting than ever before. We saw continued strength in North America and EMEA and an acceleration in Latin America despite a sequential increase in cancellations.
It is important to mention that the adjusted EBITDA exceeded $1 billion in the third quarter of 2021, compared to $217 million in the second quarter of 2021. This is very important because the adjusted EBITDA provides clearer indications of quarterly performance and shows that Airbnb is on track to become profitable on a fiscal year basis.
The company’s management expects another revenue and EPS beat in the four-quarter together with further adjusted EBITDA margin expansion, compared to the third quarter of 2021.
Vaccination progress
