In a highly volatile extended trading session on Tuesday, Airbnb Inc.'s stock experienced fluctuations after reporting quarterly results that surpassed analysts' revenue estimates and the company's own guidance.

Airbnb's sales for the quarter ended December 31, 2021, showed a robust 17% increase to $2.22 billion, compared to $1.9 billion in the same period of the previous year. Analysts surveyed by FactSet were expecting adjusted earnings of 66 cents per share, while the company delivered better-than-expected revenue of $2.22 billion.

While Airbnb's performance surpassed projections, the company provided guidance for the first quarter of 2022, estimating sales between $2.03 billion and $2.07 billion. This modest outlook aligns closely with FactSet analysts' forecast of $2.03 billion.

Following the release of the report, Airbnb's stock initially surged by 17%, reflecting investor optimism. However, the gains were short-lived as the stock quickly reversed its trajectory and ended the after-hours trading session down by 4%. In regular trading on Tuesday, Airbnb's stock declined nearly 2% to close at $150.82.

In a letter to shareholders accompanying the results, Airbnb acknowledged its "inflection point" and declared its readiness to embark on the next chapter after prioritizing the refinement of its core service over the past three years.

Over the past year, Airbnb's stock has shown resilience, gaining 25%. This performance has outpaced the broader market benchmark, the S&P 500 index.

The market's reaction to Airbnb's quarterly results reflects investors' mixed sentiments, with a brief surge followed by a subsequent drop in the stock price. As the company looks ahead to 2022, it faces an opportunity to leverage its strong sales growth and navigate the ongoing challenges posed by the global travel industry.