Airbnb is on watch as earnings approach and with European backlash seen as a new long-term risk

Airbnb (NASDAQ:ABNB) is scheduled to report earnings on August 6 after the market closes. Analysts expect Airbnb (ABNB) to disclose revenue of $2.74 billion and EPS of $0.94. The online travel company has topped EPS estimates in 11 of the last 12 quarters.

UBS thinks that Airbnb’s (ABNB) Q2 room nights could come in above guidance for stable growth and top the 9.5% year-over-year pace seen in Q1. Analyst Stephen Ju said the company’s guidance looks conservative since there should be a room night’s tailwind from Easter falling in Q1. Ju said AirDNA data is also directionally positive for Q2 gross booking value and room nights. Looking ahead, UBS sees an opportunity for Airbnb (ABNB) to expand its take rate, thereby adding revenue at very high incremental margins.

A potential topic for the earnings call may be how Airbnb (ABNB) views the risk of other European cities following the lead of Barcelona in announcing that it would not renew any tourist apartment licenses after they expire in 2028. “Other cities around the world are also struggling to reconcile the housing needs of year-round residents, the rights of landlords and the allure of the economic benefits that being a top tourist destination can bring,” warned Associated Press on the development. The issue could impact how investors view the long-term growth profile of Airbnb (ABNB).