Airbnb logged another quarter of sales growth, as travelers are feeling more confident about making future vacation plans.
Travel demand strengthened in the third quarter and into October, the Airbnb said.
Travel demand strengthened in the third quarter and continued to do so in October, the short-term rental company said Thursday. Customers are booking travel further in advance, which is a contrast from earlier in the year, when many were waiting to plan trips amid economic uncertainty.
Revenue rose 10% to $4.1 billion. Analysts surveyed by FactSet forecast revenue of $4.08 billion. Gross booking value was $22.9 billion, ahead of the $21.9 billion expected.
Airbnb also said customers are booking further in advance because of its new Reserve Now, Pay Later offering, which lets users reserve a rental without paying upfront.
Third-quarter net income was steady at $1.37 billion for the quarter ended Sept. 30. Earnings per share rose to $2.21, from $2.13 in the prior-year period. Analysts were looking for earnings of $2.31 a share, according to FactSet.
Quarterly profit was dented partly because of a higher tax expense related to the new One Big Beautiful Bill Act. The company is no longer using its corporate alternative minimum tax credit, so it is writing off a $213 million tax asset.
Airbnb anticipates its tax expenses will be lowered by the law in the long term. The company now expects its effective tax rate in 2026 to be in the mid-to-high teens, rather than around 20%.
In the fourth quarter, Airbnb is guiding for sales of $2.66 billion to $2.72 billion, compared with the $2.67 billion Wall Street is projecting. Gross booking value is expected to rise by a low double-digit percentage in the quarter, driven by increases in average daily rates and more nights and seats booked.
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