NASDAQ$ABNB

Airbnb Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Airbnb's Q4 2022 financials were released, showing significant growth and profitability.

Airbnb reported a strong Q4 2022 with revenue of $1.9 billion, a 24% increase year-over-year. Net income reached $319 million, marking the most profitable fourth quarter ever. Nights and Experiences Booked increased by 20% to 88.2 million, and Gross Booking Value grew by 20% to $13.5 billion. The company's focus on cost discipline and strategic initiatives drove significant margin expansion and free cash flow generation.

  • Q4 revenue reached $1.9 billion, up 24% year-over-year, driven by growth in Nights and Experiences Booked.
  • Net income for Q4 was $319 million, the most profitable Q4 ever, with a net income margin of 17%.
  • Nights and Experiences Booked increased by 20% year-over-year to 88.2 million, with strong growth across all regions.
  • Free Cash Flow for Q4 was $455 million, driven by revenue growth and net margin expansion.

Headline financials

Total Revenue

$1.9B

Previous: $1.53B+24.2%
EPS (adj)

$0.48

Previous: $0.08+500.0%
Free Cash Flow

$455M

Previous: $376M+21.0%
Net Income

$319M

Previous: $55M+480.0%
Operating Income

$235M

Previous: $75.6M+211.0%

Revenue & EPS history

Airbnb · Revenue · Quarterly

$1.9B

Q4 2022+24.2%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Airbnb anticipates continued strong demand in Q1 2023, with revenue expected to be between $1.75 billion and $1.82 billion, representing year-over-year growth of 16% to 21%. The company expects Nights and Experiences Booked growth to be nearly as strong as in Q4 2022 but anticipates slightly lower ADR compared to Q1 2022. For the full year 2023, Airbnb aims to maintain a strong Adjusted EBITDA margin, offsetting headwinds from lower ADR with cost efficiencies and fixed cost discipline.

Tailwinds

  • Strong demand expected to continue in Q1 2023.
  • European guests booking summer travel earlier.
  • Market share gains in Latin America.
  • Continued recovery within Asia Pacific.
  • Revenue expected to grow between 16% and 21% year-over-year in Q1 2023.

Headwinds

  • Slightly lower ADR anticipated in Q1 2023 compared to Q1 2022.
  • Increasing downward pressure on ADR expected for the remainder of 2023 due to mix shift and new pricing tools.
  • Adjusted EBITDA margin expected to be slightly down year-over-year in Q1 2023 due to changes in brand marketing spend timing.
  • Sales and marketing expenses expected to be approximately 150 basis points higher as a percentage of revenue in Q1 2023.
  • Unspecified headwinds from lower ADR will need to be offset with cost efficiencies.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+0.5%

Avg return

Earnings day

-1.5%

Avg return

5 days after

-2.1%

Avg return

30 days after

50%

11 / 22 earnings

Positive

+17.7%

Q4 2022

Best reaction

-11.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-5.7%-4.9%
Q4 2025+4.6%+7.2%+8.9%
Q3 2025-3.9%+1.0%+3.1%
Q2 2025-8.0%-6.8%-5.1%
Q1 2025+1.0%-0.7%+4.0%
Q4 2024+14.4%+12.0%-12.9%
Q3 2024-4.5%-5.5%-2.8%
Q2 2024-9.8%-8.2%-7.3%
Q1 2024-8.0%-6.7%-8.2%
Q4 2023-3.6%-0.8%+8.2%
Q3 2023-2.4%-0.1%+14.1%
Q2 2023-3.0%-3.5%-8.2%
Q1 2023-9.9%-16.2%-8.1%
Q4 2022+17.7%+13.0%+3.1%
Q3 2022-11.7%-10.1%-5.3%
Q2 2022+3.4%+5.3%+2.0%
Q1 2022+2.2%-11.1%-20.6%
Q4 2021+10.0%+3.1%-7.1%
Q3 2021+16.6%+12.6%-3.5%
Q2 2021+3.1%-2.9%+11.5%
Q1 2021+0.7%-3.7%+5.8%
Q4 2020+3.1%-5.1%-12.9%
Q3 2020
Q2 2020
Q1 2020
Q4 2019
Q3 2019

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