Vacation rental company Airbnb reported on Tuesday a second-quarter profit that was lower than Wall Street expectations, citing a weaker demand from US clients.
After the bell, shares of the company fell by about 12%.
Since the beginning of the year, domestic travel has been under pressure in the United States as Americans become more cautious about their travel spending due to the growing economic uncertainty.
The San Francisco company reported a quarterly profit of $555m, compared with $650m the previous year.
According to data from the London Stock Exchange Group, it expects revenue for the third quarter to range between $3.67bn to $3.73bn. This is below analysts’ estimates of $3.84bn.
Airbnb expects a moderating increase in nights booked for the third quarter, and has said that it is experiencing shorter booking lead-times globally.
Booking lead time, also known as the number of days that pass between the date of the reservation and the actual arrival, is an important metric for the travel industry. Bookings that are made at the last moment can be a sign of consumers booking their travels due to uncertainty and cautious spending.
Booking, a travel reservation provider, said in a statement earlier this month that the lead time had decreased in the second quarter. It is expected to continue decreasing in the third.
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