The pandemic hit the travel industry hard. However, as global travel demand returns to normal, vacation rental leader Airbnb (ABNB -1.98%) has demonstrated its resilience. 

Surprisingly even now when rising inflation should have affected a consumer discretionary company, Airbnb recorded another stellar quarter. The travel industry's long-term prospects are excellent, and Airbnb, with the unique experience it offers travelers, could take advantage of this opportunity. Let's look deeper to see why this is the only stock I'd buy right now.

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Airbnb's revenue and profit growth are impressive

Airbnb's stock is up 23% year to date. This is not surprising given the rapid growth it has experienced. It is an internet platform that connects travelers with hosts who want to rent out their homes or other properties as vacation rentals.

2022 proved a fantastic year for the company, with total revenue increasing by 40% to $8.4 billion due to strong travel demand. It also had its first profitable year, with a net income under generally accepted accounting principles (GAAP) of $1.9 billion -- a remarkable feat for a consumer company in an inflationary environment.

The company holds a competitive advantage over its peers in the hotel industry by offering travelers a comfortable experience and a chance to stay in unique locations where most hotels won't do business. This moat has boosted its revenue and profit margins over the past year, as depicted in the chart below.

ABNB Operating Margin (TTM) Chart

ABNB Operating Margin (TTM) data by YCharts

The company reported a profitable first quarter with GAAP net income of $117 million, a $136 million increase over the previous year's quarter. Its total revenue at $1.8 billion showed a 20% increase from the previous year.

With the growing popularity of flexible- and remote-work cultures in mind, Airbnb launched a new initiative in the fourth quarter called Airbnb-Friendly Apartments to assist "long-term renters in finding apartments that they can part-time host on Airbnb."

According to management, this initiative has been well received by travelers. The number of friendly apartment buildings increased from 175 in 30 U.S. markets to 250 in Q1. Management plans to bring this concept to Europe, Latin America, and Asia. 

Its unique business model is resilient

Airbnb is part of the travel and tourism industry, which has steady demand. Yes, some crises, such as a global pandemic, may cause temporary setbacks. However, this industry is rapidly growing. The travel and tourism industry's revenue could reach $854 billion in 2023, according to estimates. Airbnb currently holds around 20% of the vacation rental market, indicating that it still has plenty of room to outperform its competitors and dominate the market.

According to an Airbnb Statistics survey, people prefer this platform because they want to live like a local. This is typically not possible in hotels because they are not located in remote regions. Many Airbnb hosts also allow pets, unlike many hotels. This business model could be highly profitable in the long run. 

It is relatively rare to find a well-established business with significant room for expansion. It will be interesting to see what new initiatives Airbnb comes up with to continue to stand out from its rivals.

The company is financially secure enough to carry out its future expansion plans. It had $8.1 billion in cash and cash equivalents at the end of the quarter. It also had $1.6 billion in free cash flow in 2022, up 33% from the previous quarter.  

Consistent revenue and profit growth could propel the stock to new heights in the coming years. Looking at the long-term prospects, this tech stock appears to be a good buy right now.