Airbnb crushes Q4 estimates as “a herd of classic hotel users to short -term rents – what leads the increase in” nights and experiences ” – Invesco QQQ TRST, Series 1 (NASDAQ: QQQ), Airbnb (Nasdaq: Abnb)

Airbnb Inc. Abnb The profit expectations exceeded the fourth quarter of 2024, driven by the rapid growth of “nights and expertise” reservations and the gains of their share in the market from traditional hotels. This is the strongest quarter of growth throughout the year in 2024.

What happened: According to The financial manager of the company, Elie Mertzthe The company mostly witnessed the “market share of the coming from hotels” recently.

“The increases that we saw in terms of looking at the brand were attracting more, frankly, the classic hotel users to try our products and allowed us to continue getting its share in the market,” Mertz said during the profit call.

The company witnessed a growth in “Airbnb” nights, which indicates one stay overnight in a listed property, as well as Airbnb experiences, activities led by locals that allow travelers to experience a destination through local eyes.

“The nights and experiences that were booked in the fourth quarter to 12 %, making it the highest quarter of growth on an annual basis of 2024.”

The administration also said that this year, Airbnb plans to invest $ 200 million to $ 250 million to launch and expand new business, which will be presented in May.

See also: Berkshire Hathaway from Warren Buffett sells approximately $ 36 million in Divita giant Devita, amid the profits of the fourth quarter.

Why do it matter: Airbnb’s revenue in the fourth quarter of $ 2.5 billion, an increase of 12 % annually, won the estimates of analysts of $ 2.42 billion. The value of the total reservation amounted to $ 17.6 billion, with 111 million nights and seized experiences. The free cash flow was 458 million dollars, and the average Ebitda rose to 765 million dollars from $ 738 million last year.

However, the highlight of the future Outlook expects Airbnb the effect of the margin of new business investments in focusing in the first three quarters of the year. Revenue gains will not be achieved from new companies until after its launch at the end of the second quarter.

“The revenues of the first quarter will be greatly affected by the FX’s opposite winds in addition to changing the VIS-A-VIS calendar or for the year 2024. This will not affect not only revenue but also Q1 Ebitda. The financial manager added:

Price work: ABNB shares rose 0.37 % on Thursday, reaching $ 141.04 per share, but they jumped by 14.22 % in trading after hours after their results.

The Trading Fund for Exchange tracks the Nasdaq 100 index, Investco QQQ TRUST, Series 1 QQq 1.44 % rose on Thursday. ABNB increased by 7.27 % of the year, while it decreased by 4.83 % during the past year.

The average target price between 35 analysts followed by Benzinga is $ 137 with the “Hold” classification. Estimates range from $ 90 to $ 195 each. The latest classifications of Wells Fargo, Morgan Stanley and B from Securities indicate the goal of 126.67 dollars, which means that there is a possible negative side of 21.37 %.

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