Airbnb reported better-than-expected revenue for the fourth quarter, with revenue climbing 17% from the same quarter the previous year. The company also posted adjusted earnings of $738 million, surpassing analyst expectations of $645 million. However, Airbnb reported a net loss of $349 million, compared to net income of $319 million the previous year. The loss included lodging tax reserves and nonrecurring tax withholding expenses of around $1 billion.
Despite the positive revenue results, Airbnb's stock fell more than 4% in extended trading. The loss per share was 55 cents, but it is unclear if this is comparable to the profit estimate of 62 cents.
In its shareholder letter, Airbnb stated that it is at an "inflection point" after spending the past three years upgrading and adding features to its main room-sharing service. The company plans to invest in under-penetrated markets abroad in 2024 and will share plans to expand beyond its core business later this year.
Airbnb also announced approval to buy back up to $6 billion of its Class A common stock. The company's first-quarter revenue is expected to be between $2.03 billion and $2.07 billion, with strong demand from first-time users.
Gross booking value reached $15.5 billion in the fourth quarter, and the company reported 98.8 million nights and experiences booked, surpassing analyst expectations. Average daily rates increased 3% to $157, and the company ended 2023 with 7.7 million active listings, an 18% increase from the previous year.
Airbnb highlighted "double-digit supply growth" in active listings across every region, with the Asia-Pacific and Latin America regions experiencing the most growth.
Overall, while Airbnb's revenue and bookings showed positive growth, the company's net loss and stock performance indicate potential challenges ahead. However, the company remains optimistic about its future growth and expansion plans, particularly in under-penetrated markets abroad.