.August 7, 2024 04:35 PM

Airbnb (NASDAQ:ABNB) saw its share price drop by 15% today after releasing mixed second-quarter results and a disappointing revenue forecast for the third quarter. The company reported revenue of $2.75 billion in Q2, slightly exceeding estimates, but fell short on adjusted EPS at $0.86. For Q3, Airbnb projected revenue between $3.67 billion and $3.73 billion, below expectations due to slowing demand from U.S. guests and shorter booking lead times globally. Despite this, CEO Brian Chesky noted strong growth in Latin America and Asia Pacific.

In the second quarter, Airbnb reported a net income of $555 million with a 20% margin. Adjusted EBITDA increased by 9% year-over-year to $894 million, and free cash flow rose by 16% to $1.0 billion. Looking ahead to Q3, Airbnb expects modest growth in average daily rates but anticipates flat Adjusted EBITDA compared to the previous year, with margins likely to decline due to increased marketing expenses.