Airbnb ABNB-Q posted higher quarterly revenue on Thursday as international travel demand remained strong, although it forecast slower growth for the first quarter due to tough year-over-year comparisons and a stronger dollar.
The vacation home rentals company said it was benefiting from continued growth in Latin America and sustained cross-border travel demand in Asia Pacific and Europe, the Middle East and Africa. Shares of the company were up 14 per cent in trading after the bell.
Airbnb forecast first-quarter revenue of $2.23 billion to $2.27 billion, a 4 per cent to 6 per cent increase, compared with a year earlier. The company said revenue growth benefited during the same period in 2024 from the timing of Easter and the inclusion of Leap Day.
The average daily rate, or the cost per night, is expected to decline slightly year-over-year in the first quarter due to exchange rates.
A strong U.S. currency is making it more expensive for multinational companies like Airbnb to convert profits booked abroad into dollars. In January, the U.S. dollar index reached a two-year high.
Excluding the impact of the calendar and foreign exchange rate, Airbnb anticipates revenue to increase in the range of 10 per cent to 12 per cent from a year earlier.
The company expects Nights and Experiences Booked in the first quarter to be flat, compared with the same period a year earlier, when excluding Leap Day. About 133 million nights and experiences were booked in the first quarter of 2024.
The San Francisco-based company said it was benefiting from the launch of its co-host network four months ago which allows a manager to take care of guests and the property on behalf of the owner. It said that co-host listings earn about twice as much as other Airbnb listings in comparable countries.
Airbnb also said it plans to invest $200 million to $250 million towards launching and scaling new businesses during the year.
Revenue rose 11.8 per cent to $2.48 billion for the fourth quarter ended December 31, compared with Wall Street estimates of $2.42 billion.
The company posted earnings of 73 cents per share, compared with analyst expectations of 58 cents per share.