Airbnb Inc. raised its annual revenue forecast on Thursday, citing robust bookings in key markets across the Americas, even as the company reported a significant increase in spending as it works to diversify its business beyond short-term home rentals.
Strong Outlook for Global Travel
The short-term rental company now expects annual revenue growth to accelerate to the low-to-mid teens percentage range, up from its previous forecast of at least low double digits. Analysts had projected a 12% increase, according to data compiled by Bloomberg.
“Our 2026 outlook is underpinned by continued momentum in our core business — particularly strong nights booked growth in North America and Latin America, our fastest-growing region,” Airbnb said in a letter to shareholders.
First-Quarter Results and Spending Surge
Airbnb reported first-quarter net income of $160 million, falling short of the $180 million average analyst estimate. Sales and marketing expenses rose 33% from a year ago to $751 million, far exceeding the $681 million Wall Street had expected. The increased spending reflects the company's push into new services and markets.
The company, best known for its home rentals, is now offering rooms at boutique hotels in areas with tight short-term rental regulations. It is also testing add-on services such as Instacart grocery stocking and airport car pickups in select markets.
Regional Performance and Challenges
Overall nights booked jumped 9% from a year earlier, beating analyst estimates, despite increased cancellations in the Middle East due to the ongoing conflict. In Asia, first-time bookers in India grew more than 75%, while Mexico continued to post double-digit nights growth in Latin America.
Airbnb cautioned that the Middle East conflict would continue to impact second-quarter results, leading to slower growth in nights and seats booked. However, the overall demand momentum bodes well for the company as it prepares for the World Cup, the global soccer competition to be held in the United States, Canada, and Mexico. More than 100,000 homes in the 16 host cities have been listed on Airbnb for the first time.
Revenue Forecast and Stock Performance
Airbnb projected revenue for the second quarter of $3.54 billion to $3.6 billion, surpassing analyst estimates. Shares rose about 1% on Friday morning in New York. The stock has gained approximately 4.3% this year, compared with a 7.9% increase in the S&P 500 Index.
Airbnb's optimistic outlook suggests that global travel demand will remain healthy, even as some airlines and travel companies have cut forecasts due to concerns about the war in Iran limiting regional travel.
