Will booking growth benefit Airbnb’s (ABNB) third-quarter revenue?

Airbnb ABNB is due to release its third quarter 2022 results on November 1.

The increase in customer bookings in North America, EMEA and Latin America should have contributed well to the booked nights and experiences indicator in the third quarter.

The Zacks consensus estimate for nights and experiences booked for Q3 is set at 101 million, implying a 27.98% increase from the figure reported a year ago.

Additionally, price appreciation should have driven gross book value per night and booked experience (or average daily rates) in the highlighted quarter.

Expected growth in these business metrics may have improved gross book value (GBV) in the quarter under discussion.

The Zacks consensus estimate for third-quarter gender-based violence is pegged at $15.8 billion, suggesting a 32.6% growth from the figure reported a year ago.

Click on here to find out how ABNB’s overall performance in the third quarter should have been.

Airbnb, Inc. Price and EPS Surprise

Airbnb, Inc. price-eps-surprise | Quote Airbnb, Inc.

Reinforcement of the booking rate

The impact of growing travel demand among globetrotters is expected to be reflected in upcoming third quarter results.

These days, travelers are making flexible itineraries due to growing remote and hybrid work initiatives. Flexibility in travel plans likely boosted Airbnb’s booking rate in the highlighted quarter.

Additionally, the holiday season in the third quarter likely proliferated ABNB bookings in the reportable quarter.

During the third quarter, Airbnb unveiled the Historic Homes category to help visitors discover homes that offer an authentic cultural and historic stay. Notably, travelers can find almost 20,000 heritage homes in the UK, France, Germany, Spain and Italy.

Additionally, ABNB has introduced the Campaign category to enable customers to enjoy luxurious stays anywhere in the world.

The introduction of new categories on the Airbnb platform has likely helped travelers choose suitable accommodations to enjoy their travels. This may have driven the top line in the quarter under review.

In August, the sprawling countryside property where BTS stayed while filming HYBE original content was made available on Airbnb. This should have engaged BTS fans on Airbnb’s platform in Q3.

All the factors mentioned above should have contributed well to the growth of GBV in the quarter in question.

Zacks Ranking and Other Stocks to Consider

Currently, Airbnb sports a Zacks #1 rating (Strong Buy). Investors interested in the broader Zacks Computer & Technology sector may also consider other blue chip stocks such as Baidu BIDU, The trading post TDT and Tencent Music Entertainment Group TME, each carrying a Zacks Rank #2 (Buy) at present. You can see the full list of today’s Zacks #1 Rank stocks here.

Baidu is expected to release its third quarter 2022 results on November 16. Zacks’ consensus estimate for BIDU’s earnings is pegged at $2.44 per share, suggesting a 7.02% increase from the reported year-ago figure. BIDU has lost 47.2% since the start of the year. Baidu’s long-term earnings growth rate is currently projected at 20.9%.

The Trade Desk is expected to release third quarter 2022 results on November 9. Zacks’ consensus estimate for TTD’s earnings is pegged at 24 cents per share, suggesting a 33.3% increase from the reported figure for the year-ago quarter. TTD has lost 41.4% since the start of the year. TTD’s long-term earnings growth rate is currently projected at 24%.

Tencent Music is expected to report its third quarter 2022 results on November 15. Zacks’ consensus estimate for TME’s earnings is pegged at 11 cents per share, suggesting a 22.2% increase over the reported figure for the year-ago quarter. TME has lost 46.5% since the start of the year. TME’s long-term earnings growth rate is currently projected at 17.9%.

7 best stocks for the next 30 days

Just Released: Experts distill 7 elite stocks from the current Zacks No. 1 Ranking 220 Strong Buys list. They consider these tickers “most likely for early price increases.”

Since 1988, the full list has beaten the market more than 2 times with an average gain of +24.8% per year. So be sure to give your immediate attention to these 7 handpicked ones. Discover them now >>

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

Baidu, Inc. (BIDU): Free Stock Analysis Report

The Trade Desk (TTD): Free Stock Analysis Report

ADR (TME) Sponsored by Tencent Music Entertainment Group: Free Stock Analysis Report

Airbnb, Inc. (ABNB): Free Inventory Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Comments are closed.