Ahead of another blockbuster week of quarterly reports, there is one company in particular that Wall Street has its eye on: Airbnb.
Another week, another raft of big earnings on Wall Street. We’ll get the chance to look at the books of some of the newest and most-talked about companies on the U.S. markets over the next few days — including Roblox, FuboTV, and Wish. However, our analysts’ eyes are firmly set on another recent market debutant’s earnings call on Thursday evening: Airbnb (NASDAQ: ABNB). A travel company going public in the depths of a global pandemic was a ballsy move, but 2020 was actually a much better year for Airbnb than many might have predicted.
Despite bookings initially plummeting by more than 70% and laying off 25% of its global workforce, the confluence in working-from-home culture and domestic vacationing meant that Airbnb recovered much faster than its contemporaries in the travel industry. The company enjoyed a blockbuster IPO in December, with its shares closing at more than double the IPO price and a market cap of over $100 billion.
It hasn’t been smooth sailing since though. Even if shares are still sitting above IPO levels, the stock has tumbled some 30% from the all-time highs it hit in mid-February.
When is Airbnb’s Q1 earnings date?
Airbnb reports earnings for the first quarter of 2021 on Thursday, 13th of April at 5:00 pm Eastern Time after the market bell.
How can I listen to Airbnb’s earnings call?
To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to Airbnb’s investor relations page.
What to expect from Airbnb’s earnings
Here are a few things investors will be looking out for from Airbnb’s earnings call:
- Nights and Experiences Booked: Probably the clearest insight into customer engagement on the platform. These were both down by roughly 40% year-on-year in the last quarter.
- Gross Booking Value (GBV): This shows us the amount of money flowing into the company from customers. Again, this is another important engagement metric when considering Airbnb, though it does not take cancellations and refunds into account. Last quarter, GBV had dropped more than 30%/
- Revenue: The classic benchmark figure for a company like Airbnb that’s still to make a profit.Revenue came in at just under $860 million for Q4 2020, a 22% drop year-on-year that was much more reasonable than many might have expected and no where near as bad as management initially feared.
It will be very interesting to hear Airbnb management’s outlook for the rest of the year given that many analysts are expecting a lot of pent-up travel demand. In the last shareholder letter, management said:
“Our single priority in 2021 is to prepare for this travel rebound, perfecting our existing product by improving the entire end-to-end experience of our core service for both Hosts and guests.”.
Another thing to watch out for will be the year-on-year comparisons. Whereas last-year’s high-flying companies like Netflix (NASDAQ: NFLX) and Zoom (NASDAQ: ZM) are expected to have weak comparable numbers throughout 2021 due to the pull forward in customers, Airbnb will likely hit it out of the park in terms of fantastic comparable numbers seeing as last year was so bad.
It’s also getting close to the point now where we can add Airbnb to the MyWallSt shortlist. Watch this space…
Read more about Airbnb below:
A MyWallSt subscription gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team post daily insights, subscriber-only podcasts and the headlines that move the market. Get your free trial now!
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.