Airbnb shares pop 15% on better-than-expected earnings and revenue

Airbnb shares jumped 15% in extended trading on Thursday after the company reported fourth-quarter earnings and revenue that beat analysts' estimates.

Here's how the company did compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Revenue increased 12% from $2.22 billion during the same period last year. Airbnb reported net income of $461 million, or 73 cents per share. A year ago, Airbnb reported a loss of $349 million, or a loss of 55 cents per share.

In the first quarter, Airbnb expects to report revenue between $2.23 billion and $2.27 billion. Analysts were expecting $2.3 billion for the period, according to LSEG. Airbnb said its first quarter of 2024 benefited from both Easter and an extra day in February.

Airbnb also said adjusted profit for the fourth quarter was $765 million, up 4% year over year. Analysts were expecting $653.5 million, according to StreetAccount.

In a letter to shareholders, the company said it has rebuilt its technology stack and rolled out new product updates in recent years that are driving higher conversion rates. The company also teased new offerings that it will launch in May, though it did not disclose additional details. 

"Airbnb is a fundamentally stronger company today than it was several years ago," the letter said. "We're continuing to build on this momentum in 2025, executing a multi-year strategy to perfect the core service, accelerate growth in global markets, and launch and scale new offerings."

The company reported 111 million nights and experiences booked, up 12% from a year ago and above the 108.7 million expected by StreetAccount. Gross booking value, which Airbnb uses to report host earnings, service fees, cleaning fees and taxes, totaled $17.6 billion in the fourth quarter. That is above the $17.2 billion expected by analysts polled by StreetAccount.

Airbnb said Airbnb.org, a nonprofit founded by the company, has housed more than 19,000 people and 2,300 pets following the devastating wildfires that broke out in Los Angeles last month. The nonprofit has pledged to offer 100,000 free nights and has received $27 million in donations, including $18 million from Airbnb and its founders.

The company said it has more than five million hosts and eight million active listings around the world. Average daily rates increased 1% from a year ago to $158 in the fourth quarter, the company said.

Airbnb shares were up about 7% for the year before Thursday's report, topping the Nasdaq, which has gained more than 3%.

The company will hold its quarterly call with investors at 4:30 p.m. ET.