Airbnb Q2 earnings: Focus on European markets, bookings amid global events

Airbnb (NASDAQ:ABNB) is expected to report its second quarter earnings on Tuesday, August 6, and the firm is anticipated to see healthy revenue growth, but investors will focus on a potential slowdown in the European market.

The consensus EPS Estimate is $0.95 and the consensus Revenue Estimate is $2.74B (+10.5% Y/Y)

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.

However, the San Francisco-based company is expected to benefit due to the Paris Olympics, as bookings in the city swelled by 400% with the surge spilling over into surrounding cities like Saint-Denis (Olympic village, host of 3 venues), Châteauroux (shooting events), and Lille (basketball and handball).

Additionally, the demand for hotel accommodations resulted in a 40% increase in active Airbnb (ABNB) listings.

The company’s revenue has seen a healthy growth, mainly due to a rebound in global travel.

“New features like Icons and group trip organization are distinguishing Airbnb from competitors and expanding its market appeal,” said SA analyst Gary Alexander.

Airbnb’s stock has cooled off since March, presenting a strong buying opportunity ahead of the Q2 earnings cycle, Alexander added.

“Airbnb outpaces competitors in unique stays and revenue growth. It focuses on quality listings, appeals to millennials, and invests in product development and innovation,” SA analyst Yiannis Zourmpanos.

Airbnb has remained resilient amid a challenging environment exacerbated by heightened inflation and high interest rates, significantly affecting its consumers’ purchasing power, Zourmpanos added.

Last quarter, Airbnb (ABNB) delivered Q1 earnings that topped estimates for key metrics, but guidance fell short of the high expectations.

Shares in the company were down 8.7% since the start of the year.

“Airbnb demonstrates strong bargaining power, maintaining a 3% annual growth in booking value per night despite economic pressures,” said SA analyst LEL Investment.