Airbnb (ABNB) has reported an 18% increase in first-quarter revenue, reaching $2.68 billion and surpassing Wall Street‘s expectations of $2.62 billion. However, the company’s earnings per share fell short, coming in at 26 cents compared to the anticipated 29 cents. Despite these mixed results, Airbnb has issued an optimistic forecast for the remainder of the year.
Revenue Growth and Forecast
Net income for the quarter rose to $160 million, or 26 cents per share, up from $154 million, or 24 cents per share, during the same period last year. This growth was driven by increased gross booking value, which climbed 19% to $29.2 billion, exceeding analysts’ projections of $27.82 billion.
Looking ahead, Airbnb has raised its full-year revenue growth guidance to "low to mid teens", up from a previously forecasted 12%. For the second quarter, the company expects revenue between $3.54 billion and $3.60 billion, outperforming analysts’ expectations of $3.46 billion.
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Impact of Middle East Conflict
While Airbnb demonstrated strong financial performance, the ongoing war in Iran has presented challenges. The company reported "slightly elevated" cancellations across Europe, the Middle East, Africa, and the Asia Pacific regions due to regional instability and rising oil prices. It anticipates a 100-basis-point headwind to nights and seats booked in the second quarter, leading to a slower pace of growth compared to the first quarter.
Addressing these hurdles, Airbnb said in a letter to shareholders, "We remain optimistic about our continued momentum, even as we face tougher comparisons in the back half of this year against the rollout of Reserve Now, Pay Later in 2025 and current headwinds from the Middle East conflict."
Expanding Guest Numbers and Upcoming Events
Despite geopolitical challenges, Airbnb is gearing up for a busy summer season, buoyed by the upcoming FIFA World Cup, which will take place across 16 cities in Canada, Mexico, and the United States. The company expects to host the largest number of guests ever for an event, adding over 100,000 properties to its platform since October 2025 to meet demand. A $750 incentive program for new hosts launched in February has further supported this expansion.
Airbnb also noted the success of the Milano Cortina Olympics and Paralympic Games earlier this year, which attracted approximately 200,000 guests and saw a nearly one-third increase in supply in the host market.
Strong Performance Metrics
Airbnb’s adjusted EBITDA for the first quarter totaled $519 million, surpassing the estimated $485 million. Additionally, the platform witnessed significant growth in first-time bookers, particularly in emerging markets like Brazil, Japan, and India. Nights and seats booked rose by 9% to 156.2 million, exceeding analysts’ expectations of 155.77 million.
Highlighting its global reach and ability to navigate challenging circumstances, Airbnb stated, "We have millions of homes, everywhere in the world, at every price point, and that’s something most travel companies can’t replicate. It’s a core reason we’re able to deliver consistent results, even in challenging environments."
With strong revenue growth and a focus on expanding its global offerings, Airbnb continues to position itself as a leader in the travel and hospitality industry, even amid external challenges.