Airbnb says its profit fell 15% in the second quarter from a year earlier as higher income tax costs squeezed the short-term rental giant’s bottom line, even as bookings and revenue increased.
Earnings missed Wall Street expectations and Airbnb shares fell.
The San Francisco-based company reported net income of $555 million, or 86 cents per share, for the three months ended June 30 on Tuesday. That compares with net income of $650 million, or 98 cents per share, in the same quarter last year.
Analysts’ consensus estimates were for earnings of 91 cents per share, according to FactSet.
Revenue rose 11% from a year earlier to $2.75 billion, slightly above analysts’ forecasts.
The vacation rental platform said it booked 125.1 million room nights and experiences in the second quarter, a 9% increase from a year earlier.
The average daily rate increased by 2% to $170.
Airbnb shares were down about 14% in after-hours trading Tuesday.
