Airbnb Slides As IPO Lock-Up Period Expires

Shares of Airbnb (ABNB) fell in Monday morning trading as an IPO lock-up period expired, releasing millions of shares from selling restrictions. The expiration of the lock-up period comes two trading days after Airbnb reported quarterly earnings last Thursday.

EARNINGS: 

On May 13, Airbnb posted a ($1.95) per share loss for the first quarter, though its revenue of $886.94M was up 5% year-over-year. Analysts expected a loss of ($1.19) on revenue of $714.41M. During the period, Airbnb guests booked 64.4 million nights and experiences, representing a year-over-year increase of 13%. Gross booking value increased 52% to $10.3B. "More than a year after the start of the pandemic, Airbnb's business has continued to prove highly resilient, with strength in North America, domestic travel, nearby travel, and long-term stays," the company stated.

Looking ahead, Airbnb said in its Q1 investor letter than it expects Q2 revenue to be "significantly higher" than the year-ago period. It added that "In the near-term, we anticipate that year-over-year comparisons for Nights and Experiences Booked and GBV will continue to be volatile and unreliable measures of the steady-state growth of our business. This is due to the significant increase in cancellations that we experienced in Q2 2020 and changes in the historically more predictable booking patterns."

Airbnb further said it has seen improving trends in April relative to March in both Nights and Experiences Booked and GBV.

LOCK-UP EXPIRATION:

 Shares of Airbnb are down from their opening price of $146 that was seen when the company came public on December 10, 2020. The lock-up period, or the window of time when insiders are not allowed to sell the stock, has lifted as of May 17. According to Airbnb’s S-1 filing, the lockup expiration was set for “the opening of trading on the second trading day immediately following our public release of earnings for the second quarter following the most recent period.”

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