Airbnb raised its forecast for the year, citing expanding global demand and gains made from using artificial intelligence to improve its platform. The short-term rental company said it now expects revenue to grow this year at least between 15% and 19%, up from its previous projection of an increase of between 10% and 15%.
Airbnb raises annual projection with strong demand and advances with AI on the platform
Airbnb raised its forecast for the year, citing expanding global demand and gains made from using artificial intelligence to improve its platform. The short-term rental company said it now expects revenue to grow this...
The new projection incorporates strong demand on the platform in all regions, according to the company. In the most recent quarter, annual growth in the number of nights booked accelerated in both new and core Airbnb markets, supported by a rebound in travelers from the United States, France, the United Kingdom and Australia.
Airbnb, which released its balance sheet late on Thursday afternoon, the 6th, stated that these trends indicate that efforts to improve the product, with AI support, are working. Technology has allowed the company to develop and test changes more quickly, accelerating the release of new features and improvements compared to a year ago.
In the second quarter, for example, Airbnb implemented updates to offer more relevant recommendations on the home page and in search results, in addition to redesigning the registration, login and checkout processes. According to the company, these changes have increased the proportion of users who complete reservations.
The company has also been rolling out AI tools to help hosts improve ads and increase earning potential, as well as using AI to automate customer service.
"This faster pace of innovation is reshaping nearly every area of Airbnb, and we believe it is one of the reasons we are outperforming our largest competitors," the company said in a letter to shareholders.
CEO Brian Chesky said the improvements are part of Airbnb's effort to rebuild itself "from the ground up" and become an AI-native company. “In a nutshell, AI is the best thing that has ever happened to Airbnb,” he said, in a conference call with analysts.
In the second quarter, Airbnb's profit was $816 million, or $1.37 per share, compared with $642 million, or $1.03 per share, a year earlier. Analysts polled by FactSet expected $1.26 per share.
Revenue rose 17% to $3.61 billion, slightly above the $3.58 billion estimate. The gross value of reserves totaled US$27.2 billion, an increase of 16% in 12 months, also above the consensus, of US$26.45 billion.
For the third quarter, the company projects revenue growth of 15% to 17%, to a range of $4.69 billion to $4.77 billion. Analysts expect US$4.61 billion. Source: Dow Jones Newswires.
*Content translated with the help of Artificial Intelligence, reviewed and edited by the Broadcast editorial team, Grupo Estado’s real-time news system.
Source: Noticias ao Minuto
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