In the latest quarterly report, Airbnb (ABNB) announced better-than-expected earnings for the third quarter of the year. However, the company's stock experienced a decline in after-hours trading due to its Q4 guidance falling short of expectations.

According to the report, Airbnb reported earnings of $6.63 per share on sales of $3.4 billion for the quarter ended September 30. These figures surpassed analysts' estimates, who had predicted earnings of $2.11 per share on sales of $3.37 billion, according to FactSet data.

It's worth noting that the per-share earnings number may not be directly comparable, as Airbnb's Q3 net income of $4.4 billion included a one-time income tax benefit of $2.8 billion, as mentioned by the company.

Despite exceeding expectations for the third quarter, ABNB stock was down nearly 4% during after-hours trading. Prior to the earnings release, Airbnb's stock closed the day at 119.47, with a 1% increase.

Airbnb's Q3 results exhibited an impressive 18% year-over-year increase in sales. However, the company's Q4 guidance projected sales of $2.15 billion, falling short of the $2.18 billion expectations set by analysts, according to FactSet.

In their third-quarter shareholder letter, Airbnb highlighted the record-breaking summer travel season and acknowledged greater volatility in early Q4. The company expressed its close monitoring of macroeconomic trends and geopolitical conflicts that may impact travel demand.

The report also revealed that active listings on Airbnb experienced a 19% growth in the third quarter compared to the same period last year. The company also witnessed double-digit supply growth across all regions and market types.

Furthermore, Airbnb's gross booking value climbed 17% year over year to $18.3 billion, surpassing estimates of $17.9 billion. Additionally, the average daily rate paid by customers for their stays increased by 3% year over year to $161, which was higher than the estimated $158.

Despite the recent decline in stock value, ABNB stock has still gained nearly 40% this year. It is noteworthy that Airbnb was added to the prestigious S&P 500 index in September, further solidifying its presence in the market.

As Airbnb moves forward into Q4, the company aims to navigate the potential challenges posed by economic trends and geopolitical conflicts, while continuing to capitalize on the growing demand for alternative accommodations.

The disappointments in Q4 guidance may be seen as a temporary setback, and investors will be closely monitoring Airbnb's ability to adapt amidst a rapidly changing travel landscape.