Homestay and vacation rental company Airbnb (ABNB) beat revenue and profit estimates for the fourth quarter of 2021 despite a resurgent wave of COVID-19 infections globally.
Airbnb reported that its revenue grew 78% to $1.53 billion U.S. That beat analysts’ projections for $1.46 billion U.S. of revenue.
The San Francisco-based company reported net income of $55 million U.S. compared with a loss of $3.9 billion U.S. a year earlier. Q4 earnings per share came in at $0.08 U.S., compared with estimates for $0.03 U.S.
Airbnb has recovered from the depths of the pandemic in 2020, when the company cut thousands of jobs and considered delaying its initial public offering as travel ground to a halt around the world.
After the initial shock, business boomed as workers no longer had to be in traditional offices five days a week and could work from anywhere. Almost half of the number of nights booked in the fourth quarter were for stays of a week or longer and one in five nights were for stays of a month or more.
Airbnb remained resilient in the fourth quarter even as the Omicron variant of COVID-19 swooped in late last year, re-shuttering businesses and disrupting flights and vacation plans over the year-end holiday season.
The company said it saw a lower impact on bookings and cancellations with Omicron than it had with the earlier Delta variant.
Airbnb said it’s “encouraged” by what it is seeing so far this year. “The impact of omicron has quickly dissipated, and guests are confidently booking for the summer travel season early in the year,” the company said.
Airbnb now expects the number of nights and experiences booked in the current first quarter to “significantly exceed” the first-quarter levels of 2019. The company guided for Q1 revenue of $1.41 billion U.S. to $1.48 billion U.S.
Airbnb shares gained about 4.5% in extended trading after closing up 6.1% to $180.07 U.S. in regular trading on February 15. The company’s stock has risen 21% in the past six months.