Title: Airbnb Reports Revenue of $2.22 Billion, Beats Estimates and Expects Strong First Quarter

In its fourth-quarter results released on Tuesday, Airbnb, the popular vacation rental platform, surpassed revenue expectations, recording $2.22 billion in revenue. The news has been received positively by investors, with the company's stock surging more than 8% during extended trading.

Although Airbnb reported a loss of 55 cents per share (EPS), it is not immediately clear if this can be directly compared to the predicted profit estimate of 62 cents, according to LSEG (formerly known as Refinitiv). However, analysts were pleased with the revenue performance, as expectations stood at $2.17 billion.

Compared to the same period the previous year, Q4 revenue saw a 17% climb from $1.9 billion. Airbnb's adjusted earnings for the fourth quarter amounted to $738 million, surpassing analysts' expectations of $645 million, as reported by StreetAccount.

Despite a net loss of $349 million in the fourth quarter, compared to a $319 million net income in the same period the previous year, Airbnb mentioned that the loss includes tax reserves for lodging and non-recurring tax withholding expenses totaling around $1 billion.

In a letter to shareholders, Airbnb indicated that the company has reached an "inflection point" after dedicating the past three years to enhancing and introducing new features to its primary room-sharing service. Looking forward, Airbnb plans to invest in untapped international markets in 2024 and intends to share expansion plans beyond its core business later this year.

The company expressed confidence in its 2022 first-quarter revenue, estimating it to be between $2.03 billion and $2.07 billion. This outlook aligns closely with Wall Street's expectations of $2.03 billion, according to LSEG. Airbnb had a strong start to the quarter, with over 6 million guests opting to celebrate the new year with an Airbnb booking.

Meanwhile, gross booking value, a metric used by Airbnb to monitor host earnings, service fees, cleaning fees, and taxes, reached $15.5 billion in the fourth quarter. Night and experience bookings totaled 98.8 million, surpassing analysts' expectations of 98 million, representing a 12% increase compared to the previous year.

Airbnb highlighted the sustained strength in guest demand, particularly among first-time users. The company observed a growth acceleration in bookings after experiencing volatility in October due to the Israel-Hamas conflict. Average daily rates in the fourth quarter rose by 3%, amounting to $157.

By the end of 2023, Airbnb boasted 7.7 million active listings, an 18% increase from the previous year. The company also reported "double-digit supply growth" in active listings across all regions, with the greatest growth witnessed in Asia Pacific and Latin America.

Airbnb's quarterly call with investors is scheduled for 4:30 p.m. ET, allowing investors to gain further insights into the company's performance.

Overall, Airbnb's strong revenue performance and positive first-quarter outlook underscore its position as a prominent player in the vacation rental market, despite the challenges presented by the pandemic and other external factors.