Here are key data from Airbnb’s Q1 2024 results: A great quarter, but Q2 seems soft. Blame it on the Easter bunny for being early this year?
Q1 2024:
- Strong Start to 2024: Airbnb kicked off the year with its most profitable first quarter ever.
- Bookings: Nights and Experiences booked increased to 133 million.
- Revenue Growth: Earned $2.1 billion in revenue, up 18% from the same period last year.
- Profit: Net income for the quarter was $264 million.
- Efficiency: Adjusted EBITDA was $424 million, with a 20% margin, showing a 6% improvement from last year.
- North America ADR:
- Increase: ADR in North America increased by 3% in Q1 2024 compared to Q1 2023.
- Excluding Factors: When excluding the impact of foreign exchange (FX) and mix shift, ADR was flat year-over-year.
- EMEA ADR:
- Increase: ADR in EMEA increased by 7% in Q1 2024 compared to the same period in the prior year.
- Excluding Factors: Excluding the impact of FX and mix shift, ADR increased by 4%.
- Long-term Stays:
- Proportion of Bookings: In Q1 2024, long-term stays of 28 days or more accounted for 17% of gross nights booked.
- Comparison to Previous Year: This is a slight decrease from 18% in the previous year.
Supply trends
- Active Listings Growth: Excluding the removal of thousands of underperforming listings, active listings for accommodations grew by 17% year-over-year. This indicates a robust increase in the number of hosts and properties available on the platform, which is essential for accommodating growing travel demand.
- Quality Control Measures: Airbnb removed thousands of listings that failed to meet guest expectations as part of their ongoing quality control measures. This action underscores their commitment to ensuring a high-quality experience for users, which also impacts the overall perception and trust in the platform.
- Supply Distribution: Supply growth was sustained across all regions, showing a strong and consistent increase in listings globally. This growth was balanced between urban and non-urban areas, and between individual and professional hosts, indicating a broad-based expansion in Airbnb’s market presence.
- Listing Exclusivity: A majority of the new listings were exclusive to Airbnb, which suggests that Airbnb is continuing to attract hosts who prefer its platform over competitors, potentially due to its user base, platform features, or host support mechanisms.
Outlook: A soft summer 2024 for Airbnb?
For Q2 2024, Airbnb’s financial performance is influenced by the timing of Easter, which has shifted compared to 2023. This shift is expected to impact both revenue growth and margin dynamics in Q2. Specifically, the timing of Easter this year benefited Q1 by boosting revenue and margins due to increased travel activity during the holiday period. However, as a result, Q2 might face comparative headwinds because the holiday boost that typically falls in Q2 occurred earlier in the year.
Airbnb also anticipates that Q2 growth will be relatively flat compared to the growth rates experienced in the same quarter the previous year. This flat growth projection is partly due to the tough comparison against a strong Q2 in 2023, where the timing of Easter and other seasonal factors may have been more favorable.
Looking further into 2024, for Q3, Airbnb is more optimistic, expecting revenue growth to reaccelerate. This outlook is bolstered by major events such as the Olympics in Paris and the Euro Cup, which are likely to significantly increase demand for accommodations. The company has also noted a strong backlog of bookings that are setting a positive trajectory into the third quarter.
Overall, while Q2 might see some challenges due to the calendar shift of Easter and tough year-over-year comparisons, the broader outlook for 2024 remains strong, with strategic initiatives and major events expected to drive growth as the year progresses.
