Airbnb (ABNB) Stock Gains on Q4 Beat, Analysts Raise Price Targets
Airbnb (NASDAQ: ABNB) reported earnings and revenue that beat consensus estimates in Q4 2021.
The company posted EPS of 8 cents, topping the consensus estimates of 3 cents in EPS and compared to a loss per share of $11.24 in the year-ago period. Revenue came in at $1.53 billion, up 78% YOY and beating the analyst consensus of $1.46 billion.
Gross booking value stood at $11.3 billion, compared to $11.09 billion and up 92% YOY. Adjusted EBITDA was $333.4 million, compared to the $20.5 million loss reported in the year-ago quarter and outshining the analyst consensus of $286 million.
The number of nights and experiences booked was reported at $73.4 milion, up 59% YOY but short of the consensus estimates of 75.3 million.
For FQ1 2022, Airbnb expects revenue in the range of $1.41 billion to $1.48 billion, beating the estimated $1.22 billion. The company said it expects to see its first positive adjusted EBITDA in the first quarter and anticipates Q1 2022 nights and experiences bookings to top Q1 2019 levels.
“Despite the continued near-term uncertainties, we see evidence of strong pent-up demand: as of the end of January 2022, we had over 25% more nights booked for the summer travel season than at this time in 2019,” the company said.
Morgan Stanley analyst Brian Nowak reiterated an Equal Weight rating but raised the price target to $175.00 per share from the prior $160.00. His 3 key takeaways from the earnings report are:
1) ABNB's '22 growth profile is better than modeled, 2) Expect platform innovation around demand and supply to accelerate, and 3) Platform profitability flowing through too.
“We remain EW and continue to be impressed with ABNB's strong fundamental top and bottom line execution...while staying on the sidelines due to valuation and lack of material upside to our forward estimates,” Nowak wrote in a client note.
Piper Sandler analyst Thomas Champion also reiterated a Neutral rating and raised the price target to $194.00 per share from the prior $169.00.
“4Q results were strong and broadly beat expectations, driven by strength in North America,
EMEA, and Latin America. 4Q bookings accelerated on a 2-year stack (+31% y/2y) and revenue of $1.5BN (+38% y/2y) was 3% above PSC. Management's tone sounded confident and suggests the return to more normalized travel continues. The evolution towards longer-term stays continues and remains the fastest growing category. Our 1Q and FY22 estimates improve,” Champion said in a memo.
Shares of Airbnb are up over 3% in pre-open Wednesday.
By Senad Karaahmetovic | [email protected]