Top 4 Key Takeaways from Airbnb's Latest Earnings Report

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Airbnb’s latest third-quarter earnings report shows the company is still on a growth trajectory and hints at plans for a new business venture in 2025.

During the quarter ending on September 30, Airbnb reported increases in revenue and bookings, according to Thursday’s post-market earnings release. Company executives outlined a roadmap for sustained growth through its co-host program and an expansion beyond short-term rentals.

Key Takeaways from Airbnb’s Earnings Report:

Revenue and Bookings Growth in Q3

Airbnb's revenue rose by 10% to $3.73 billion, slightly surpassing the $3.72 billion anticipated by Reuters-polled analysts. Earnings per share came in at $2.13, just shy of the estimated $2.14. Despite a slower start to the quarter, total nights and experiences booked rose by 8% to 122.8 million compared to Q3 of 2023, with bookings gaining momentum later, said CEO Brian Chesky.

Following the earnings report, Airbnb’s shares dropped 4% in after-hours trading, settling at $141.55.

Expanding Property Listings with Co-Hosts

In October, Airbnb introduced a co-host program that enables additional people to help manage listed properties. This initiative has already attracted 10,000 co-hosts across 10 countries. The goal, Chesky explained, is to make hosting easier for property owners and to attract more listings by connecting those with available properties to people who have time to manage them.

"This approach could unlock millions of new listings over the coming years,” Chesky added.

New AI Chat Assistant in the Works

Airbnb is testing an AI-powered chat assistant that can answer questions and will eventually handle more complex tasks, like managing bookings. Future versions could even cancel or rebook reservations based on users’ preferences, Chesky noted, ultimately reducing the need for traditional customer service.

"In the future, we expect the majority of our chats to be managed directly by this AI agent," Chesky said.

Plans to Expand Beyond Accommodations in 2025

Airbnb’s press release confirmed the company’s intention to branch out beyond short-term rentals next year. Chesky said the new venture would start by exploring travel-related services before expanding further over the next decade. Although details remain under wraps, Chesky likened this expansion to Amazon’s move beyond book sales in the late ‘90s.

He anticipates launching “one to two new businesses each year” that could add over a billion dollars in annual revenue.

 

 

 

 

 

 

 

 

 

 

 

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