Airbnb Inc (NASDAQ:ABNB) stock fell 9.89% (As on May 10, 11:44:57 AM UTC-4, Source: Google Finance) after the company expected fewer bookings and lower average daily rates in the second quarter versus a year earlier. However, the company swung to a profit in the first quarter of the year, driven by strong travel demand, though cautioned that growth in the second quarter will be kept in check by tough comparisons following the pandemic-fueled demand seen last year.  US travel companies, which have benefited from higher prices and hybrid work, are moderating their outlook for 2023 as pre-pandemic travel patterns return and consumers seek cheaper accommodation amid high inflation and recession fears. The company’s gross booking value increased 19 percent to $20.4 billion in the first quarter from a year earlier, in line with a 19 percent increase in nights and experiences bookings to 121 million. Cross-border nights booked grew by 36% in Q1 2023 compared to a year ago. The company saw international travel from other regions to Asia Pacific increase 160% during the quarter compared to Q1 2022. Average daily rates were flat year-on-year at $168. Net income was $117 million, the first profitable Q1 on a GAAP basis. Adjusted EBITDA was $262 million, increased 14% while Free Cash Flow was $1.6 billion, growing 32% year-over-year. Q1 2023 net cash provided by operating activities was $1.6 billion, up from $1.2 billion in Q1 2022. The increase in cash flow was driven by revenue and bookings growth as well as net margin expansion.

ABNB in the first quarter of FY 23 has reported the adjusted earnings per share of 18 cents, missing the analysts’ estimates for the adjusted earnings per share of 20 cents. The company had reported the adjusted revenue growth of 20 percent to $1.8 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $1.79 billion.

ABNB forecast second-quarter revenue between $2.35 billion and $2.45 billion, largely in line with analysts’ expectations for $2.42B. The company said earlier this year that average daily rates would remain pressured as vacationers returned to lower-cost urban rentals. Nights and experiences booked year-over-year growth in Q2 2023 is expected to be lower than the revenue growth during the quarter.

Nights and Experiences Booked will have unfavorable year-over-year comparisons in Q2 2023 as we overlap pent-up 2022 demand after the COVID Omicron variant.

The company also announced a new share buyback program of up to $2.5B.