Airbnb announced revenue rose 5% in Q1, as the rapid pace of vaccinations led to more travel. The firm’s net loss tripled because of debt repayments and restructuring costs.
The company reported an earnings loss of $1.95 per share, while it reported revenue of $886.9 million, vs. $714.4 million as anticipated by analysts.
The rise in year-over-year revenue followed a 22% slump in the fourth quarter.
The COVID-19 pandemic reduced rental activity on Airbnb, but the business seems to be rebounding as vaccines become more widely available, and governments lift travel restrictions.
The firm published 64.4 million nights and experiences booked, up 39% from Q4 and up 13% YOY.
Meanwhile, Booking nights dropped in every quarter in 2020 compared with the same period in 2019.
Gross booking value, Airbnb’s way of tracking host earnings, service fees, cleaning fees, and taxes equaled $10.3 billion, up 52% year over year.
Furthermore, Airbnb’s net loss tripled as it repaid debt for loans it took out early in the COVID-19 pandemic.
The firm expects revenue in Q2 2021 to be higher than that of Q2 2020
Another essential thing to mention is that Its average daily rate increased by 25% from the previous quarter to $160, reflecting an increase in the amount individuals spend on homes and experiences. Airbnb showed strength in bookings in North America, with complete homes and locations outside cities. Remarkably, all of these manage to bring higher rates.
According to Dave Stephenson, Arbnb’s finance chief, cancellation rates are now considerably lower than in 2020 but remain higher than they were in 2019.
The firm expects revenue in Q2 2021 to be significantly higher than that of Q2 2020 and to be at a similar level to that of Q2 2019.
According to Airbnb, increased availability of vaccines and the easing of some travel restrictions prompt guests to search for and book travel later in the year.
