Airbnb ABNB reported adjusted earnings of 76 cents per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate by 13.4%. The figure increased 58.4% year over year.

Revenues of $2.22 billion increased 17% on a reported basis and 14% on an FX-neutral basis, respectively, year over year. The top line also surpassed the Zacks Consensus Estimate of $2.16 billion.

The year-over-year increase was driven by a continuous improvement in Nights and Experiences Booked.

Growing gross nights booked, owing to the solid momentum across high-density urban areas, remained a positive. Increasing guest demand, especially among first-time bookers, was a plus. Continuous recovery in cross-border travel aided the quarterly performance.

These factors aided growth in the company's Gross Booking Value (GBV) in the fourth quarter.

Also, a solid momentum in Airbnb app downloads contributed well.

Airbnb, Inc. Price, Consensus and EPS Surprise

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Quarterly Details

Nights and Experiences Booked were 98.8 million, up 12% on a year-over-year basis. The metric was driven by strong performances in all regions, especially the Asia Pacific and Latin America.

GBV amounted to $15.5 billion, which rose 15% from the prior-year quarter's reported figure.

GBV per Night and Experience Booked (or Average Daily Rates) was $156.73, which grew 3% on a year-over-year basis.

In terms of trip length, the category of long-term stays of 28 days or more accounted for 19% of overall gross nights booked.

In the reported quarter, gross nights booked in high-density urban areas grew 11% year over year and represented 51% of overall gross nights booked.

Cross-border nights booked was up 13% year over year and accounted for 44% of total gross nights booked.

Operating Results

Adjusted EBITDA was $738 million, up 46% from the prior-year quarter.

Operations and support costs, product development expenses, and sales and marketing expenses were $271 million, $432 million and $424 billion, increasing 4.2%, 8.5% and 3.9%, respectively, year over year. General and administrative expenses rose significantly to $1.2 billion from the $256 million reported in the year-ago quarter due to non-recurring tax withholding expenses and lodging tax reserves.

For the fourth quarter, Airbnb reported an operating loss of $496 million against the $235 million of operating income reported in the prior-year quarter.

Balance Sheet & Cash Flow

As of Dec 31, 2023, cash and cash equivalents, and short-term investments amounted to $10.1 billion compared with $10.96 billion as of Sep 30, 2023.

Long-term debt, as of Dec 31, 2023, was $1.991 billion compared with $1.990 billion as of Sep 30, 2023.

Net cash provided by operating activities was $63 million for the fourth quarter of 2023, significantly down from $1.3 billion in the previous quarter.

Airbnb generated a free cash flow of $46 million in the fourth quarter.