Airbnb Stock Falls. Wall Street Hoped for More From Earnings.

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Airbnb earned $379 million in the second quarter, reversing a loss of $19 million in the first quarter.

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Airbnb shares are trading sharply lower in late trading Tuesday after the short-term real-estate rental service posted second-quarter results about in line with the company’s guidance, but apparently not quite as good as investors had hoped.

For the quarter, Airbnb (ticker: ABNB) reported revenue of $2.1 billion, up 58% from a year ago, consistent with the company’s forecast of $2.03 billion to $2.13 billion, and a hair below consensus at $2.11 billion. On a constant currency basis, revenues were up 64%. The company noted that revenue was up 73% from 2019, before the onset of the Covid-19 pandemic.

Gross booking value was $17 billion, up 27%, or 34% adjusted for currency, but down slightly from the $17.2 billion reported in the first quarter. Q1 bookings had been 67% higher than the year-earlier quarter, or 71% higher adjusted for currency.

“Nights and experiences” booked were 103.7 million in the quarter, up 25% from a year ago, and the highest quarterly level ever. That was up slightly from 102.1 million in the first quarter, but decelerating from the first quarter growth rate of 59%, and a little below Street estimates, which had called for 27% growth.

Airbnb earned $379 million in the quarter, reversing a loss of $19 million in the first quarter. Adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was $711 million, or $764 million adjusted for currency, up from $229 million in the first quarter, and well above estimates. Profits were 59 cents a share, above the Street consensus at 44 cents.

Airbnb also said its board has authorized the repurchase of up to $2 billion of its common stock.

The company laid out a generally upbeat view of the near-term outlook. Airbnb said that it has “seen the growth in nights booked compared to last year reaccelerate from June to July as we enter peak travel season.”

Airbnb said it is “in the midst of our strongest peak travel season yet,” noting that July 4 was the company’s single highest revenue day ever.

Airbnb said it expects “modest acceleration” in gross booking value growth in the third quarter. The company sees Q3 revenue of between $2.78 billion and $2.88 billion, just above the Street consensus forest at $2.77 billion, projecting the strongest quarter yet for adjusted Ebitda. Airbnb added that it expects adjusted Ebitda margin to be “at or slightly below last year’s all-time high margin of 49% primarily due to the timing of expenses.”

In late trading, Airbnb shares were off 9.6% to $105.16.

Write to Eric J. Savitz at eric.savitz@barrons.com