Airbnb Inc (NASDAQ:ABNB) stock fell 10.24% (As on November 2, 11:27:57 AM UTC-4, Source: Google Finance) after the company gave a disappointing outlook for bookings in the fourth quarter, suggesting that consumer preferences are shifting away from higher cost rentals that thrived during the pandemic and back to urban and cross-border destinations. Airbnb reported 99.7 million nights and experiences booked in the three months ended in September, falling short of analysts’ estimates of 99.9 million. Airbnb also said it expects average daily rates to moderate this quarter due to a strong dollar and a shift in people heading back to cities, which tend to have lower rates based on smaller-sized accommodations. The company forecast fourth-quarter revenue of $1.80 billion to $1.88 billion, with the low end of that range below Wall Street’s estimate of $1.86 billion.

ABNB in the third quarter of FY 22 has reported the adjusted earnings per share of $1.79, beating the analysts’ estimates for the adjusted earnings per share of $1.43, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 29 percent to $2.88 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue by 1.03%. In Q3 2022, the company had nearly 100 million Nights and Experiences Booked, up 25% year-over-year, and $15.6 billion in Gross Booking Value, up 31% year-over-year (or 40% ex-FX). The company also had the most profitable quarter with net income of $1.2 billion, up 46% year-over-year, representing a 42% net income margin. Free cash flow of $960 million increased more than 80% from a year ago. And, over the last twelve months, the company generated $3.3 billion in FCF, representing a FCF margin of more than 40%. Adjusted EBITDA in Q3 2022 increased 32% compared to $1.1 billion in Q3 2021. Adjusted EBITDA margin was 51% for Q3 2022, up from 49% in Q3 2021.

Moreover, Cross border gross nights booked increased 58%, while high-density urban nights booked grew 27% compared to Q3 2021. In Q3 2022, high-density urban nights booked was 48% of total gross nights booked (versus 58% in Q3 2019) and cross-border was 43% (versus 48% in Q3 2019). In addition, North America remained strong with Nights and Experiences Booked in Q3 increasing 20% above the level achieved in the same quarter of 2021. In EMEA, Nights and Experiences Booked grew 20% compared to Q3 2021.