Airbnb Rising After Pandemic Slump... "Q1 Earnings to Surpass 2019"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Airbnb, a lodging sharing company hit hard by COVID-19, is expected to surpass its pre-pandemic 2019 performance in the first quarter of this year, recovering from the impact of the global pandemic.

According to CNBC on the 15th (local time), Airbnb announced its Q4 2022 earnings and Q1 2023 earnings guidance, projecting first-quarter revenue of $1.41 billion to $1.48 billion (approximately 1.7 trillion to 1.8 trillion KRW). This exceeds the market expectation of $1.24 billion.

The key metric for Airbnb’s performance, the number of bookings, is also expected to surpass that of Q1 2019. This is the first time Airbnb has predicted that booking numbers will recover to pre-COVID-19 levels since the pandemic began. Airbnb stated, "Although short-term uncertainties persist, we are confirming strong pent-up demand," adding, "As of the end of Q1 this year, summer vacation season bookings are 25% higher compared to the same period in 2019."

In particular, the impact of cancellations due to the spread of the Omicron variant is less severe compared to the previous Delta variant. As of December last year, total lodging bookings increased by 40% year-over-year. While Q4 2022 bookings were 73.4 million, down 8% from the previous quarter, they increased by 59% compared to 2020.

Airbnb, a shared lodging company severely affected by COVID-19, entered an emergency mode by halting marketing and cutting employee salaries as business became difficult. Despite these challenges, the company went public (IPO) in 2020 and showed signs of recovery last year as travelers increased due to expanded COVID-19 vaccinations.

Following the earnings announcement, Airbnb’s stock price rose nearly 5% in after-hours trading on the same day.

This content was produced with the assistance of AI translation services.