Airbnb loses 349 million in Q4 after settlement with Italian tax authorities
On a glonal level, revenues increased by 17% to USD 2.22 billion, beating analysts' forecasts of USD 2.17 billion in a FactSet survey. Bookings increased by 12% and the average daily rate rose by 3%.
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Airbnb lost USD 349 million in the fourth quarter due to the tax agreement signed with Italian authorities. The company says this, pointing out, however, that 'bookings and revenue have increased' and that demand for short-term rentals remains 'strong'.
On a glonal level, revenues increased by 17% to USD 2.22 billion, beating analysts' forecasts of USD 2.17 billion in a FactSet survey. Bookings increased by 12% and the average daily rate rose by 3%.
The company expects first quarter revenues to meet or beat Wall Street expectations. Airbnb expects first-quarter revenues of $2.03 billion to $2.07 billion. Analysts' expectations are for $2.03 billion. However, the anticipated Easter 2024 is likely to hurt growth in the second quarter, Airbnb said.
The agreement with the Italian tax authorities
.The holiday home platform had announced in December that it would pay 576 million euros ($621 million) to the Italian tax agency for a case that involved withholding taxes on Italian property hosts. Airbnb, for its part, despite having paid what the tax authorities demanded, has not admitted any wrongdoing: the company's officials say it has no similar liability in other countries. Excluding extraordinary tax charges, Airbnb claimed it would have earned $489 million.
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CEO Brian Chesky said in a call with analysts that Airbnb is 'fine-tuning' its business by making prices more transparent, curbing exorbitant cleaning fees and reducing cancellations by hosts.
