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Airbnb higher after hours following earnings beat

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Airbnb reported earnings that outperformed street estimates, with the company reporting $859M in revenue
vs the Stree estimate of $740M in revenue. Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down the key metrics.

Video Transcript

ADAM SHAPIRO: But we're going to go forward to Jared Blikre. We've got earnings from Airbnb. What are they reporting, Jared?

JARED BLIKRE: Well, we got some nice beats here. And the stock up about 1% to 2% in after hours trading here. So for the fourth quarter, top line revenue came in at $859 million. That is a drop of 22% year over year, but it's higher than the estimate of $740 million.

Now they did have a net loss of $3.9 billion. And that's including $2.9 billion worth of stock-based compensation expense. Nights and experience, they booked 46.3 million. That is a drop of 39% year over year, not surprising given the category, nights and experiences.

Adjusted EBITDA loss was $21 million. Estimate loss was for much greater than that, $128.3 million. So a nice beat there. And negative free cash flow coming in at $147 million. Estimate was for a multiple of that, negative $577 million. Also, gross bookings, that key metric coming in at [? $5.9 ?] billion, a drop of 31% year over year.

Now they're not providing an outlook for the rest of 2021. They're saying that the company sees a, "limited visibility for growth trends into the end of the year," citing difficulty determining the pace of vaccine rollouts and impact on travel. So they plan to improve variable costs in this year, increasing market efficiency, "tightly managing fixed expenses."

We have 13 buys, 20 holds, and 3 sells on the stock. But overall, nice beats on both the top and bottom lines, as you can see here, up 2.5% in after hours trading.

Quick look at the chart here. Over the last year-- or excuse me, since they began trading-- you can see they're up 25%. Biggest down day they've ever had. But not surprising given the market rout we had today, guys.