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San Francisco based Airbnb Inc Reports Q1 Revenue

Airbnb Inc beat Wall Street expectations for quarter 1 gross bookings and revenue on Thursday. Speedy COVID-19 vaccinations and easing restrictions encouraged more people to check into its vacation rentals. Gross bookings jumped 52% to $10.29 billion in the quarter, easily beating analysts’ estimates of $6.93 billion.

Airbnb Inc said that many guests aged 60 and above in the U.S., who were amongst the first groups to benefit from vaccine rollouts, searches on our platform for summer travel increased by more than 60% between February and March 2021.

The San Francisco-based company expects second-quarter revenue to be similar to 2019 levels, adding that the return of urban and cross-border travel is likely to underpin growth over the coming quarters. Brian Chesky, Chief Executive officer said that the company is set to benefit from demand for longer stays and a shift to travelling in groups by business travellers on a post-earnings call. The company has weathered the pandemic better than rivals as people turned to its offering of larger spaces and locations away from major cities in the era of social distancing.

The company also recorded bookings in Britain after the government laid down plans to ease the travel and lift the lockdown. Airbnb Inc said it was too early to foresee if the recovery momentum would proceed at the same pace in the second half of 2021. Its revenue rose 5.4% to $886.9 million in the first quarter ended March 31, exceeding estimates of $714.4 million. Adjusted loss before interest, taxes, devaluation and amortization limited to $59 million, from $334 million a year earlier mainly due to cost cuts.

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