Airbnb boosts annual sales outlook while spending picks up

The overall demand momentum bodes well for Airbnb, which is expecting to welcome tens of thousands of new guests and hosts this summer ahead of the World Cup. Photo by Mario Tama/Getty Images

Article content

Airbnb Inc. boosted its annual forecast on robust bookings in the major markets in the Americas, while it posted a big jump in spending as part of an effort to diversify the business.

Article content

The short-term rental company said it expects annual revenue growth to “accelerate to low- to mid-teens.” In February, Airbnb told investors it anticipated annual sales would gain “at least low double digits.” Analysts, on average, projected a 12 per cent jump, according to data compiled by Bloomberg.

Article content

Article content

Article content

“Our 2026 outlook is underpinned by continued momentum in our core business — particularly strong nights booked growth in North America and Latin America, our fastest-growing region,” Airbnb said Thursday in a letter to shareholders.

Article content

Article content

The company posted first-quarter net income of US$160 million, compared with analysts’ average estimate of US$180 million. Sales and marketing expenses rose 33 per cent from a year ago to US$751 million, far exceeding the US$681 million that Wall Street projected.

Article content

Airbnb, which is best known for its short-term home rentals, has begun offering rooms at boutique hotels in markets where short-term rentals are tightly regulated. It is also adding new a-la-carte services in select markets, like Instacart grocery-stocking, as well as car pick-ups at airports.

Article content

The shares rose about one per cent Friday morning in New York. The stock has gained about 4.3 per cent this year, compared with a 7.9 per cent increase in the S&P 500 Index.

Article content

Airbnb’s optimistic outlook suggests that global travel demand will remain healthy, even as companies like United Airlines Holdings Inc., American Airlines Group Inc. and Booking Holdings Inc. cut their forecasts based on predictions that the war in Iran would limit travel in the region.

Article content

Article content

Airbnb said there were increased cancellations during the first quarter across the region that includes the Middle East. But overall nights booked still jumped nine per cent from a year ago, thanks to much-stronger growth elsewhere, and topped analysts’ estimates. In Asia, first-time bookers in India grew more than 75 per cent, and in Latin America, Mexico continued to post double-digit nights growth.

Article content

Article content

The company expects to see continued impact from the Middle East conflict in the second quarter, which would result in slower growth in nights and seats booked in the period.

Article content

But the overall demand momentum bodes well for Airbnb, which is expecting to welcome tens of thousands of new guests and hosts this summer ahead of the World Cup, the global soccer competition being held in the United States, Canada and Mexico. More than 100,000 homes in the 16 host cities have been listed on Airbnb for the first time, the company said.

Article content

Airbnb projected revenue for the three months ending June will be US$3.54 billion to US$3.6 billion, which also surpassed estimates.

Article content

Article content

Article content