Airbnb Inc (NASDAQ:ABNB) stock rose 4.09% (As on February 13, 11:29:43 AM UTC-4, Source: Google Finance) after the company posted higher fourth-quarter revenue but lower profit, as investments in new business drive up expenses and a favorable outlook. Net income came in at $341m, down from $461m a year earlier. The decline in earnings was due to planned investments in new growth and policy initiatives, as well as a $90 million charge related to non-income tax matters. The platform ended the year on what it described as solid momentum, with 121.9 million nights and experiences booked in Q4, up 10% y-o-y and above expectations. North America was the slowest growing geographic market in terms of nights and seats booked. Latin America was the fastest growing, followed by Asia Pacific and Europe, the Middle East and Africa. Gross booking value climbed 16% to $20.4 billion, ahead of the $19.4 billion analysts predicted. Airbnb is investing in its new Experiences product and aiming to expand its presence in more geographical markets.
Moreover, in May 2025, the company launched a new segment that allows customers to book services such as a private chef or yoga instructor, allowing it to compete better with hotels, which typically offer a larger selection of frills. However, in the fourth quarter, half of Airbnb’s experiences bookings were not attached to an accommodation booking. The company is also pursuing an expansion in hotels offered by partnering with boutique and independent hotels in cities such as New York and Madrid, where regulations have limited supply for rentals. Therefore, the company said at the start of 2025 it would invest up to $250 million in launching and scaling new businesses that year. Along with Experiences, Airbnb has started partnering with boutique hotels in certain cities and is aiming to bring more hotels onto its platform.
ABNB in the fourth quarter of FY25 has reported the adjusted earnings per share of 56 cents, missing the analysts’ estimates for the adjusted earnings per share of 66 cents. The company had reported the adjusted revenue growth of 12 percent to $2.78 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $2.72 billion. Sales growth was primarily driven by an increase in nights stayed and a moderate rise in average daily rate.
The company projected revenue between $2.59 billion and $2.63 billion for the quarter, compared with analysts’ average estimate of $2.53 billion, according to data compiled by LSEG. San Francisco-based Airbnb expects 2026 revenue to increase “at least low double-digits”, roughly in line with analysts’ estimates of 10.24%.