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