Airbnb (NASDAQ:ABNB) inventory gained sharply in after hours buying and selling on Tuesday after reporting stronger than anticipated This fall income, selling the corporate’s first annual revenue.

For the fourth quarter, the San Francisco-based firm posted $0.48 in earnings per share, properly above the $0.27 consensus estimate. In the meantime, a 24.2% leap in income from teh prior 12 months quarter to $1.9B in income narrowly cleared the bar set by analysts.

“Visitor demand remained robust all through 2022. All areas noticed important progress in 2022 as visitors more and more crossed borders and returned to cities on Airbnb,” a shareholder letter launched alongside the outcomes learn. “Provide progress was additionally robust in 2022. We ended the 12 months with 6.6 million world lively listings, which is over 900,000 extra listings than we had at first of the 12 months, excluding China. This progress was pushed by our world community, the place demand drives provide, in addition to product improvements that proceed to draw new Hosts.”

Provide points had been highlighted as a key concern amongst analysts forward of the report.

Whereas 88.2M nights booked was in need of the 90.1M consensus estimate and gross reserving worth at $13.5B narrowly missed the $13.58B expectation, backside line efficiency considerably exceeded consensus forecasts. The corporate reported a web revenue margin of 17% for the fourth quarter, reflecting an over 400% enhance from This fall 2021, and serving to the corporate notch its first annual revenue.

Transferring ahead, the corporate expects to stay worthwhile and initiatives $1.75B to $1.82B in income for the primary quarter pushed by a resurgence in European journey. That vary is comfortably above the consensus estimates that projected about $1.69B in income. We’re excited to see the continued robust demand in Q1 2023.

“In Q1 2022, journey was considerably impacted by the Omicron pressure of COVID-19 in January and to a lesser extent the battle in Ukraine throughout February, making the sooner a part of the quarter a better year-over-year comparability than the tip,” the shareholder letter defined. “In Q1 2023, we anticipate Nights and Experiences Booked year-over-year progress to be practically as robust as This fall 2022.”

Shares of Airbnb (ABNB) rose 11.37% shortly after the outcomes had been introduced.

Learn extra on the particulars of the quarter.