In after-hours trading the Airbnb share price dipped by around 3%
Airbnb reported robust growth in revenue for the quarter as people from countries with higher vaccination rates brought about a recovery for the travel sector.
However, the short-term rental company also warned of the potential spread of the Delta variant of coronavirus and its impact on booking levels for the remainder of the year.
“As we exit the second quarter and come into the third, we have a combination of fewer bookings for the fall, just given the nature of some of the seasonality and any kind of impact potentially on COVID concerns,” Chief Financial Officer Dave Stephenson said on a post-earnings call with investors.
In after-hours trading, the Airbnb share price dipped by around 3%, as investors took onboard the update.
Between April and July Airbnb enjoyed a positive period as people became more comfortable travelling long distances thereby using the company’s services.
Destinations where the vaccine roll-out was successful saw a specific rise in the number of bookings.
Airbnb’s revenue stood at $1.34bn for the second quarter, four times higher than in 2020, and 10% more when compared to the same period in 2019.
Hotels and similar types of businesses were battered by the pandemic last year as restrictions on travel made it impossible to operate.
Airbnb adapted well by focusing on offering longer-term rentals as people moved to work from home in a more convenient way.
The company is expecting to report record Q3 adjusted income before interest, taxes, depreciation and amortization (EBITDA) and margin.