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Airbnb stock falls despite steady third-quarter earnings report

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Airbnb shares are moving to the downside despite reporting record-breaking bookings and $2 billion buyback.

Video Transcript

SEANA SMITH: All right, Rachelle, I want to get to some breaking news we have here. Airbnb out with its quarterly numbers, reporting record breaking bookings, announcing a $2 billion buyback. Airbnb's nights and experiences booked during the quarter, 103.7 million. That's up 25% year over year, its largest quarterly number ever.

Most profitable second quarter ever with a net income at 379 million. Gross booking value just around 17 billion. Revenue for the quarter at 2.1 billion. That's up 73% from 2019, up 58% from just a year ago. Free cash flow of 795 million. Their guidance also looks pretty strong. They're guiding between 2.70 billion to 2.88 billion. That's at the higher end of the range. Estimate was right at 2.78 billion.

But that $2 billion share buyback that has been announced, that's certainly something that has the Street's attention. $2.1 billion in revenue essentially in line with expectations. And Rachelle, when we talk about this return to travel, Airbnb, obviously, well positioned for this. And we're seeing that reflected in the numbers with growth of 73% in revenue compared to what we were seeing in 2019.

RACHELLE AKUFFO: I mean, and the key is really flexibility. Obviously, Airbnb was able to cater to the-- when we had the work from home, people wanted locations perhaps they could travel and still work. You also had people who perhaps couldn't get into the housing market, rent too high. Also turning to Airbnb for some long-term rentals there. So clearly a lot of room to grow there, but as we're seeing there, the stock falling almost 6% here in after hours.

DAVE BRIGGS: Yeah, and that really stands out, isn't it? Another terrific performance by Airbnb. They've smashed it two quarters in a row. I got to ask you, Seana, what do you think is driving that number down? We knew this number was going to come in very strong based on the travel demand, and quite frankly, people continue to work from home, and some are working from Airbnbs. But this is a devastating number, I guess, based on that demand not continuing in Q3.

SEANA SMITH: You know, I don't know. I don't know if we can read so much into this after hours action. I think it will be interesting to see when we check back in with that in a few minutes, and of course, before the bell tomorrow, because when you take a look at these numbers, like you both are saying, they're pretty impressive.

And Rachelle, you mentioned that length of, stay, long-term stays of 28 days or more, remaining the fastest growing category by trip length here for Airbnb. Long-term stays increasing nearly 25% from a year ago, increasing by almost 90% when you compare to those 2019 levels. I think it goes back to those headline numbers that we were discussing if we can throw back up that full screen. Revenue coming in at 2.1 billion, in the line with expectations here.

So I think that maybe the Street isn't excited enough about that. But there certainly is once you've digged into this report, there's a lot to be excited about when you see that $795 million free cash flow number. The revenue growth of 73%, comparing that to 2019, its most profitable second quarter ever, with net income at 379 million. Gross booking value at 17 billion. So--

DAVE BRIGGS: There's something we're not seeing.

SEANA SMITH: --shares off after hours, but still, they're seeing-- we have on the screen-- 6 million active listings. So--

DAVE BRIGGS: It's remarkable.

SEANA SMITH: --certainly to watch here.

DAVE BRIGGS: Revenue jumped 58% year over year. You, again, had the number, a record 2.1 billion. I would love to hear what is driving shares down after hours, now down 5%. But another terrific quarter. And this stock has been upgraded six times over the last 30 days. It looks like a great buy, but something we're not seeing within the numbers.

SEANA SMITH: Yeah, Airbnb, the stock off 30% year to date. We're going to hear from Airbnb's CEO Brian Chesky. He will be on the show tomorrow at 4:10 Eastern time. Be sure to tune in.