Airbnb's (ABNB, Financial) stock price experienced a significant decline, falling over 9% to $133.44. The company's third-quarter revenue surpassed Wall Street's expectations; however, its earnings per share did not meet forecasts.
For the third quarter, Airbnb reported a revenue of $3.732 billion, marking a 10% increase from the $3.397 billion recorded during the same period last year. This growth rate remains consistent when adjusted for currency fluctuations.
However, net profit saw a sharp decline. The company posted a net income of $1.368 billion, compared to $4.374 billion in the previous year. This decrease is primarily attributed to a $2.8 billion one-time non-cash income tax benefit recorded last year. Excluding this one-time item, the adjusted net profit for Airbnb was $1.6 billion, reflecting a 69% decrease from the prior year.
Earnings per diluted share for Class A and B common stockholders came in at $2.13, significantly lower than last year's $6.63 per share.
