Airbnb tempers first-quarter forecast on FX headwinds, Easter timing

Airbnb forecast first-quarter revenue of $2.23 billion to $2.27 billion, a 4% to 6% increase, compared with a year earlier. The company said revenue growth benefited during the same period in 2024 from the timing of Easter and the inclusion of Leap Day.

The average daily rate, or the cost per night, is expected to decline slightly year-over-year in the first quarter due to exchange rates.

A strong US currency is making it more expensive for multinational companies like Airbnb to convert profits booked abroad into dollars. In January, the US dollar index reached a two-year high.

Excluding the impact of the calendar and foreign exchange rate, Airbnb anticipates revenue to increase in the range of 10% to 12% from a year earlier.

The company expects Nights and Experiences Booked in the first quarter to be flat, compared with the same period a year earlier, when excluding Leap Day. About 133 million nights and experiences were booked in the first quarter of 2024.

The San Francisco-based company said it was benefiting from the launch of its co-host network four months ago which allows a manager to take care of guests and the property on behalf of the owner. It said that co-host listings earn about twice as much as other Airbnb listings in comparable countries.

Airbnb also said it plans to invest $200 million to $250 million towards launching and scaling new businesses during the year.

Revenue rose 11.8% to $2.48 billion for the fourth quarter ended December 31, compared with Wall Street estimates of $2.42 billion.

The company posted earnings of 73 cents per share, compared with analyst expectations of 58 cents per share.