In this video, I will go over Airbnb's (ABNB 3.35%) fourth-quarter earnings and discuss why this might be the best company to hold in your long-term portfolio. You can find the video below but here are some highlights.
- Two other companies in the travel industry reported earnings this week, Expedia and Marriott. Expedia reported earnings per share (EPS) of $1.65, beating expectations of $0.97 but missing on revenue. Marriott reported EPS of $1.30, beating expectations of $1.02, and revenue of $4.45 billion.
- Airbnb reported revenue of $1.53 billion, up 78% year over year (YOY), and EPS of $0.08.
- Airbnb's CEO said, "People can travel anytime, they are traveling to more places and they are staying longer." And so the new features the company has released are meant to help you travel better. Flexibility is one of the key features it has added. Flexible dates, flexible matching, and flexible destination.
- Gross booking value grew 91% YOY to $11.3 billion. Net income was positive $55 million and a record for the quarter.
- Q4 was the most profitable fourth quarter ever for the company, having reported adjusted EBITDA of $333 million.
- Over the last two years, the average trip length increased by approximately 15%, with stays of more than seven days now representing nearly half of all gross nights booked. Meanwhile, long-term stays of 28 nights or more remained the fastest-growing category by trip length.
- The company guided for next quarter revenue of $1.44 billion at the midpoint, which beat expectations of $1.27 billion.
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*Stock prices used were the closing prices of Feb. 16, 2022. The video was published on Feb. 16, 2022.