Airbnb sees third-quarter revenue above estimates as summer bookings surge, announces $2 billion share buyback

Travellers across Europe and North America have made early bookings to visit their favourite tourist spots both domestic and international, accelerating demand for the company's long-term vacation rentals.

Vacation rental Airbnb Inc on Tuesday forecast third-quarter revenue above estimates and announced a $2 billion share buyback, its first since going public, as pandemic-weary travellers make the most of the summer.

The San Francisco-based company expects current-quarter revenue between $2.78 billion and $2.88 billion, higher than analysts' estimates of $2.77 billion, according to Refinitiv IBES.

Travellers across Europe and North America have made early bookings to visit their favourite tourist spots both domestic and international, accelerating demand for the company's long-term vacation rentals.

Airbnb, which tweaked its service in May to facilitate longer rentals, said long-term stays increased nearly 25% from a year ago and by almost 90% from the second quarter of 2019.

Easing COVID restrictions and border reopenings spurred cross-border travel, encouraging hosts to charge more and boosting Airbnb's average daily rates up 1% to $164.

The company's forecast for third-quarter bookings was at par with growth in the second quarter.

It reported a net profit of $379 million, or 56 cents per share, compared with a loss of $68 million, or $11 per share, a year earlier.

Revenue rose 58% to $2.10 billion, almost in line with estimates of $2.11 billion.

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