Airbnb’s third-quarter revenue of $3.73bn exceeded estimates, showing a 10pc year-over-year increase, but profit of $2.13 per share fell slightly short of expectations due to high marketing expenses.
Shares dropped 4pc in after-hours trading amid concerns of lower bookings at the beginning of the quarter, despite a total gross booking value of $20.1bn.
Sales and marketing expenses surged by 27.5pc to $514m as the company invested heavily in expanding its presence in under-penetrated international markets such as Brazil and Japan.
The company anticipates revenue growth of 8pc to 10pc in the fourth quarter and expects an increase in average daily rates, while also noting the challenges of tougher year-over-year comparisons.
