Airbnb earnings top estimates, stock rises after hours

Yahoo Finance's Jared Blikre reports on Airbnb earnings beating estimates.

Video Transcript

BRAD SMITH: And we've got even more earnings that have come out to this afternoon. For that, let me toss things on over to Emily.

EMILY MCCORMICK: All right, Brad, as you mentioned, we are seeing the earnings continuing to roll in this afternoon. Airbnb the latest across the tape, and we have Yahoo Finance's Jared Blikre standing by with the numbers. Jared.

JARED BLIKRE: That's right. We have Airbnb up about 3 and 1/2% in afterhours trading. Revenue, pretty nice beat here, 1.53 billion, beating the Street estimate of 1.46 billion. That number is up 78% year over year. Now EPS was a little bit of a disappointment. It came in at 8-- oh, excuse me, it came in as a beat of $0.08. The estimate was for $0.03. And here's a key statistic-- gross booking value, $11.3 billion, up 92% year over year. Pretty close to the estimate of $11.09 billion. And adjusted EBITDA, $334 million versus a loss of $20.5 million a year ago and much higher than the estimate of $286 million. That's accounting for that beat on the bottom line EPS number.

Nights and experience booked, 73.4 million, a little bit shy of the Wall Street estimate of 75.3 million. Finally, free cash flow, $376 million versus an estimate of negative $142.6 million. So the cash position looking pretty good there. Total stock-based compensation expense, that was $225 million, a little bit larger than the estimate of $199 million. And here's this first quarter forecast for Airbnb. They are seeing revenue of $1.41 billion to $1.48 billion. And that is trouncing the estimates of $1.22 billion.

Now some commentary from the earnings report. We expect to achieve our first positive Q1 adjusted EBITDA. And we expect Q1 '22 nights and experiences booked to significantly exceed Q1 2019 levels. We currently anticipate the Q1 '22 ADR-- and that's Average Daily Rate-- to be up approximately 4% from Q1 2021. And starting in Q1, we will begin using corporate cash to make all tax payments associated with employee equity grants, reducing the rate of shareholder dilution. That has to do with their good cash position, which did surprise the Street, so not going to be diluting their shareholders as much anymore.

Now Airbnb has been a stock that has been under a little bit of pressure at various times in the year. You can see it's up 8% year to date, up 6% today before we got this earnings report. You take a look at a max chart, and this is very much sideways action here. So kind of in the middle of its range. Have to see if this can catalyze a move to the upper end, around $210, $215 per share. Guys.