Airbnb Inc (NASDAQ:ABNB) stock rallies 15.02% (As on February 14, 11:21:13 AM UTC-4, Source: Google Finance) after the company posted better-than-expected fourth-quarter earnings and issued an upbeat forecast for the first three months of 2025, citing “continued strong demand” after a strong holiday travel season. For the January-to-March quarter, it sees the key metric of nights and experiences booked growing at a “relatively stable” pace compared to the same period last year, which saw a roughly 8.5% gain not including Leap Day. Wall Street was projecting an 8.3% increase for the current period, according to Bloomberg-compiled estimates. Airbnb’s fourth-quarter nights booked and adjusted earnings also beat expectations, thanks to an “acceleration in growth” across all regions, particularly in Asia Pacific and Latin America.

Meanwhile, the company said in the letter it plans to invest $200 million to $250 million into launching and scaling those new products starting in May. It has previously said those would include restarting its Experiences business for tours, classes and workshops, and offering add-on amenities during stays such as personal chefs, midweek cleaning and in-home massages. Further, Airbnb has seen encouraging results from some of its new initiatives introduced last year. The co-host marketplace, which allows homeowners to hire fellow hosts to manage their rentals, has now grown to support nearly 100,000 listings since launching fourth months ago in 10 countries. Those listings “earn approximately twice as much” in comparable markets and it plans to expand the offering to Japan and Korea “in the coming months.”

ABNB in the fourth quarter of FY 24 has reported the adjusted earnings per share of 73 cents, beating the analysts’ estimates for the adjusted earnings per share of 59 cents. The company had reported the adjusted revenue growth of 12 percent to $2.48 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $2.43 billion. The company generated $461 million of net income during Q4 2024 and delivered a 19% net income margin. Q4 Adjusted EBITDA of $765 million represented a 31% Adjusted EBITDA Margin. The company generated $466 million of net cash provided by operating activities and $458 million of FCF in Q4.

Airbnb expects revenue in the range of $2.23 billion to $2.27 billion for the first quarter of 2025, while analyst estimates are at $2.3 billion. EBITDA margin guidance of at least 34.5% for the full year 2025 was roughly in line with the Street’s estimate of 34.6%.