Airbnb forecasts lower third-quarter revenue as economic worries slow demand

By Aishwarya Jain and Doyinsola Oladipo

(Reuters) -Airbnb forecast third-quarter revenue below estimates on Tuesday and warned of shorter booking windows, suggesting travelers were waiting until the last minute to book due to economic uncertainty, sending its shares down 15% after the bell.

Domestic travel in the United States has been pressured since the start of the year as more Americans have grown cautious about travel spending on worries about the health of the economy.

San Francisco-based Airbnb reported quarterly profit of 86 cents per share, below analysts' estimate of 92 cents per share, according to LSEG data.

It expects third-quarter revenue to be between $3.67 billion and $3.73 billion, below analysts' estimate of $3.84 billion.

The company expects moderating growth in nights booked in the third quarter and said it was experiencing shorter booking lead times globally.

Booking lead time is an important metric in the travel industry and refers to the number of days between the reservation date and actual arrival. A shorter booking window can indicate consumers are booking travel at the last minute, due to increased uncertainty and caution in spending.

There have been several periods of volatility over the last couple of years when consumers were hesitant to book long in advance, the company said in an investor call.

Travel reservations provider Booking also said earlier this month that lead times had shrunk in the second quarter and were expected to shrink further in the third.

"The slowdown guided for the third-quarter echoes what others have noted in the travel industry," said Dan Wasiolek, Morningstar equity analyst. "Airbnb is not immune to a travel demand slowdown, but it remains a well-positioned brand for the long term."

Airbnb's average daily rate, or cost per night, grew about 2%, to $169.53 in the reported quarter. The vacation rental company expects ADR to grow modestly in the third quarter.

Net income margin, or the profit the company made for every dollar of revenue generated, decreased to 20% in the second quarter, compared to 26% a year ago.

Nights and experiences booked increased 9% compared to last year. Globally, nights and experiences booked in Latin America and Asia-Pacific saw the highest growth, jumping by 17% and 19%, respectively.

Total revenue for the quarter ended June 30 was $2.75 billion, above analysts' estimate of $2.74 billion.

(Reporting by Doyinsola Oladipo in New York and Aishwarya Jain in Bengaluru; Editing by Pooja Desai)