Airbnb Posts Best Quarter Yet on Relentless Travel Demand

Sustained high rates for short-term rentals and vacation homes propelled Airbnb to notch record revenues and profits in the third quarter, it reported on Tuesday. The lodging booking agency continued to cash in on consumers’ pent-up demand for travel as the pandemic receded.

Airbnb's net income rose 46 percent year-over-year to $1.2 billion, its highest-ever quarter, for the period that ended September 30.

The San Francisco-based company generated third-quarter revenue of $2.9 billion, which was likewise a company record. The revenue mark was up 29 percent compared to a year ago.

Airbnb had 90 million guest arrivals, another record. They generated 99.7 million "nights and experiences" booked, a figure that climbed 25 percent year-over-year.

Yet despite the record-breaking results, investors sent Airbnb's stock price down in after-hours trading. Why? Investors worried about a potential weakening in the company's forecasts for the fourth quarter, which dropped below their expectations.

Analysts noted that excutives said bookings would "slightly moderate" from its third quarter levels.