Shares of Airbnb (ABNB) are surging over 10% in early trading Wednesday, while those of Tripadvisor (TRIP) are up slightly after the online booking companies reported results that beat analyst estimates on stronger travel demand.
Airbnb reported its first profitable year ever, finishing 2022 with a net income of $1.9 billion, compared with a loss of $352 million the year before and ahead of expectations of $1.86 billion. Its profits came in at $506 million, ahead of analysts' estimates of $435 million. Airbnb also said its revenue for the current quarter would be between $1.75 billion and $1.82 billion, compared to estimates of $1.68 billion. The company said guest demand remained strong throughout 2022.
Tripadvisor shares popped after beating estimates as well. Revenue was up 47% from a year ago to $354 million, while earnings rose 50% to $43 million, compared to estimates of $36 million. The online travel company said it expects to see resilient demand for travel in 2023.
Viator, the online marketplace the company launched about a year ago, said it doubled its revenue of $127 million in the quarter. Revenue from Tripadvisor’s online restaurant platform, The Fork, increased 10%, while revenue from its core business jumped 34% to $217 million.
Tripadvisor shares are up 40% year-to-date, but down 11% for the past year, while shares of Airbnb are up 59% so far this year and down 20% over the past year.