Airbnb revealed a 15% decline in profit during the second quarter compared to the same period last year, primarily due to increased income tax expenses impacting its financial performance positively. Although bookings and revenue saw an uptick, the company’s bottom line did not meet expectations on Wall Street, resulting in a drop in Airbnb’s shares value.
The San Francisco-headquartered firm disclosed a net income of $555 million, equivalent to 86 cents per share, for the quarter concluding on June 30. This shows a decrease from a net income of $650 million, or 98 cents per share, from the corresponding quarter in the previous year. Analysts had anticipated earnings of 91 cents per share, as reported by FactSet.
Revenue experienced an 11% surge from the prior year, reaching $2.75 billion, slightly surpassing analysts’ projections. During the second quarter, Airbnb facilitated 125.1 million nights and experiences, marking a 9% rise from the same period in the prior year. The average daily rate also increased by 2% to $170.
Following the financial report, Airbnb’s shares encountered a decline of about 14% in after-market trading on Tuesday.
