Airbnb said revenue rose in the second quarter as a result of holidays and events like the Olympics, but warned about a potential slowdown in demand among U.S. consumers in the current quarter.
The San Francisco-based short-term rental company on Tuesday posted a net income of $555 million, or 86 cents a share, compared with $650 million, or 98 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast earnings per share of 91 cents.
Revenue rose 11% to $2.75 billion, beating the $2.74 billion expected by analysts. Airbnb had most recently said it expected revenue of $2.68 billion to $2.74 billion, representing growth of 8% to 10%.
Gross booking value was up 11%, driven by a 9% increase in nights and experiences booked and a 2% rise in average rates. Wall Street analysts were also expecting growth of 11% in gross bookings.
Airbnb said the week of July 4 in the U.S. represented its single highest week of revenue ever in North America, where it benefited from a slight acceleration in year-over-year growth in bookings in the quarter.
In Europe, the Olympics in Paris and other major sports events such as the Euro Cup in Germany drove notable bookings growth, the company said, adding that it saw relatively stable year-over-year growth in bookings in the Europe, Middle East and Africa region.
Overall, the company’s growth in the quarter was again mostly driven by its Asia Pacific and Latin America regions, where bookings jumped 19% and 17%, respectively.
Airbnb expects third-quarter revenue to rise in the range of 8% to 10%, or to $3.67 billion to $3.73 billion, amid views for a sequential moderation in growth in nights and experiences booked when compared with the second quarter. Wall Street forecasts third-quarter revenue of $3.84 billion.
“We are seeing shorter booking lead times globally and some signs of slowing demand from U.S. guests,” Airbnb said.