According to the company’s earnings report, the profit of Airbnb Inc (NASDAQ:ABNB) grew 280% in the third quarter compared to the same period last year. Driven by vaccination rollouts and the rebound of world travel, the lodging company is poised to have a stellar Q4.
Q3 2021 hedge fund letters, conferences and more
Record Profit
As reported by CNBC, Airbnb beat Refinitiv estimates in terms of revenue by topping $2.24 billion against $2.05 billion, with bookings soaring 29% year over year to a total of 79.7, despite a slight drop from the previous quarter and falling short of the 80.8 million expected by analysts.
The $2.24 billion represents a 67% increase YoY, the company’s highest revenue ever. Net income also hit a record $834 million in the last 12 months, which represents a 280% increase amid the ongoing restrictions on urban and cross-border travel in certain regions.
In a letter to company shareholders, the lodging giant said: “We’ve seen consistent demand growth in both nearby and rural destinations. Over 40% of gross nights booked in Q3 2021 were within 300 miles of home, up from 32% in Q3 2019, while gross nights booked to rural destinations increased more than 40% in Q3 2021 from Q3 2019.”
According to MarketWatch, Airbnb’s gross booking value, boosted by higher average daily rates, grew 48% year over year to $11.9 billion.
Back With A Bang
The company said: “As of the end of September, our backlog had over 40% more nights booked for Thanksgiving week in the U.S. than at the same time in 2019. And we are seeing the strong demand for travel extend well into 2022.”
Ahead of what appears to be a solid fourth quarter, “Airbnb expects revenue between $1.39 billion and $1.48 billion in the fourth quarter, in line with analyst expectations.”
According to a UN report disclosed by the end of the second quarter, global tourism –which left $2.4 trillion in 2020 due to the pandemic– will lose between $1.7 and $2.4 trillion this year, between 1.9% and 2.7% of the world’s gross domestic product.
However, the return to pre-pandemic levels can be sped up by successful –albeit uneven– vaccine rollouts and new COVID-19 treatments such as Merck & Co (NYSE:MRK)’s experimental oral treatment molnupiravir.
