Airbnb’s first quarter results reflected steady execution in a shifting global travel landscape, with the market response remaining neutral following the report. Management pointed to robust growth from international markets—particularly Latin America and Asia Pacific—as key contributors, while North America saw more muted trends. CEO Brian Chesky cited continued enhancements to Airbnb’s core platform, including improvements in price transparency and listing quality, as helping to sustain customer engagement. CFO Ellie Mertz emphasized that "Latin America accelerated over the course of the year," highlighting the effectiveness of product and marketing localization in expansion markets.
Is now the time to buy ABNB? Find out in our full research report (it’s free).
Airbnb (ABNB) Q1 CY2025 Highlights:
- Revenue: $2.27 billion vs analyst estimates of $2.26 billion (6.1% year-on-year growth, 0.6% beat)
- Adjusted EBITDA: $417 million vs analyst estimates of $361.8 million (18.4% margin, 15.3% beat)
- Revenue Guidance for Q2 CY2025 is $3.02 billion at the midpoint, below analyst estimates of $3.04 billion
- Operating Margin: 1.7%, down from 4.7% in the same quarter last year
- Nights and Experiences Booked: 143.1 million, up 10.5 million year on year
- Market Capitalization: $82.32 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Airbnb’s Q1 Earnings Call
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Justin Post (Bank of America) asked about changes in international travel corridors and U.S. market share. CFO Ellie Mertz explained that inbound travel to the U.S. is a small share of business and shifts in travel destinations are not materially affecting Airbnb’s market share domestically.
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Richard Clarke (Bernstein) inquired about U.S. guest behavior and whether booking trends were improving. Mertz detailed that shorter booking windows are seeing relative strength, while longer-term bookings remain soft, but noted historical patterns where travelers book closer to travel dates.
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Mark Mahaney (Evercore ISI) questioned the main drivers for reaccelerating nights and experiences growth. CEO Brian Chesky emphasized perfecting the core product, expanding internationally, and leveraging product improvements like Guest Favorites and enhanced affordability.
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Jed Kelly (Oppenheimer) sought clarity on Airbnb’s approach to hotels in urban markets. Chesky described renewed efforts to add more hotels to Airbnb’s platform, particularly in high-occupancy cities, as part of a broader strategy to address gaps in supply.
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Ron Josey (Citi) asked about the impact of new product launches and affordability initiatives. Mertz stated that new offerings will have a modest impact initially but are expected to scale, and that improved affordability tools could capture demand from price-sensitive travelers.
Catalysts in Upcoming Quarters
Over the next few quarters, the StockStory team will monitor (1) the adoption and impact of new product offerings introduced in the 2025 Summer Release, (2) continued growth and profitability in international expansion markets, especially in Latin America and Asia Pacific, and (3) any improvement in U.S. booking trends and the effectiveness of affordability initiatives. The balance between investment in new business lines and maintaining margin discipline will also be a key focus for our analysis.
Airbnb currently trades at $133.77, up from $124.08 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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