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(Reuters) - Airbnb forecast fourth-quarter revenue slightly below Wall Street estimates on Wednesday, as tourists cut back on their travel plans due to rising costs, uncertain economic conditions and geopolitical turbulence.
Airbnb shares were down 4.9% at $114.30 in extended trading.
The San Francisco-based company forecast fourth-quarter revenue between $2.13 billion and $2.17 billion, below average analysts' estimate of $2.18 billion, according to LSEG data.
"We are seeing greater volatility early in Q4, and are closely monitoring macroeconomic trends and geopolitical conflicts that may impact travel demand," it said in a statement.
The company, which receives a majority of revenue from outside the United States, also said it expects its bookings growth to moderate in the fourth quarter relative to the third quarter when international travel demand soared and domestic travel to cities rebounded during the summer months.
Airbnb was one of the biggest beneficiaries of the work-from-anywhere trend during the pandemic as people scoured its platform for exotic locations for work and vacation. However, that slice of revenue is moderating as more companies push their employees to return to their workplaces.
In August, the short-term rental company said it continues to see signs of travelers returning to cities after it beat second-quarter profit and revenue estimates.
In the third quarter, Airbnb said its average daily rate (ADR) rose 3% from a year earlier to $161 while ADR in North America fell for the second consecutive time by 1% in the same period.
Meanwhile, its Nights and Experiences booked in Asia Pacific saw a 27% rise from a year earlier, aided by cross-border recovery with outbound travel from China more than doubling in the same period. Smaller Asia Pacific markets such as Thailand, Hong Kong and Indonesia also saw over 30% boost in gross bookings.
Latin America was the fastest-growing region during the quarter compared to pre-pandemic periods, with nights and experiences booked nearly doubling, the company added.
Airbnb's third-quarter revenue rose 18% to $3.4 billion from a year earlier, while its gross bookings rose to $18.3 billion.
(Reporting by Priyamvada C and Doyinsola Oladipo; Editing by Anil D'Silva)
