The accommodation platform Airbnb disappointed the stock market with its business outlook for the current quarter. The share temporarily lost more than seven percent in after-hours trading on Wednesday.
At the same time, the hotel competitor emphasized that it expected strong business in the summer, including around the European Football Championship in Germany and the Olympic Games in Paris.
First-quarter revenue rose 18 percent year-over-year to $2.1 billion, above analysts’ estimates. Profit rose from $117 million a year ago to $264 million, Airbnb said. Earnings per share also significantly exceeded market expectations.
However, the sales forecast for the current quarter was cautious at $2.68 to 2.74 billion. Analysts on average had expected 2.74 billion. The results of the last quarter and the forecast for the current quarter were also influenced by the fact that the Easter holidays and the associated travel fell in March this year, as Airbnb emphasized.