Airbnb Beats Revenue Forecasts, But Iran Conflict Drives Cancellation Spike
Airbnb posted mixed first-quarter results on Thursday, topping revenue expectations but warning that the ongoing conflict in Iran is putting a dent in bookings. The home-sharing giant reported earnings per share of 26 cents, missing the 29 cents analysts had predicted, while revenue climbed 18% year-over-year to $2.68 billion, edging past the $2.62 billion consensus.
Net income rose to $160 million, up from $154 million a year earlier. For the current quarter, Airbnb issued a rosy forecast, projecting revenue between $3.54 billion and $3.60 billion—above the $3.46 billion analysts were looking for. The company also raised its full-year revenue growth outlook to the “low to mid teens,” up from an earlier 12% forecast.
But the war in Iran is creating turbulence. Like airlines and other travel companies, Airbnb is feeling the pinch from rising oil prices, flight cancellations, and regional instability. The company expects a 100-basis-point drag on nights and experiences booked in the second quarter, with a slowdown compared to the first three months of the year. The conflict has led to “slightly elevated” cancellations in Europe, the Middle East, Africa, and Asia Pacific, Airbnb noted in its shareholder letter.
Still, the platform is leaning into its global reach. Gross booking value—which includes host earnings, service fees, and taxes—jumped 19% to $29.2 billion, beating estimates. Nights and experiences booked rose 9% to 156.2 million, also ahead of forecasts. First-time booker growth hit its highest level since 2022, fueled by expansion in Brazil, Japan, and India.
Looking ahead, Airbnb is gearing up for a blockbuster summer. The upcoming FIFA World Cup, spanning 16 cities across Canada, Mexico, and the U.S., is expected to draw record guests. More than 100,000 properties have already signed up since outreach began in October, and a $750 incentive for new hosts launched in February. Earlier this year, the Milano Cortina Olympics brought about 200,000 guests, boosting local supply by nearly a third.
Adjusted EBITDA came in at $519 million, topping the $485 million estimate. “We have millions of homes, everywhere in the world, at every price point,” the company wrote. “That’s something most travel companies can’t replicate.”