Airbnb's U.S. demand is predicted to slow down, causing a 14% drop in the company's shares after an earnings miss.

• The company cautioned that it anticipated a decrease in year-over-year growth in its "Nights and Experiences" category compared to the current quarter.
• The company warned that it was observing shorter booking lead times worldwide and some indications of decreasing demand from American tourists.
• In the second quarter, Airbnb recorded its highest result with 125.1 million Nights and Experiences booked by users.

After-hours trading saw a 14% drop in shares following the release of the company's second-quarter earnings, which fell short of analyst expectations and indicated a slowing demand from U.S. customers.

How did the company perform in comparison to LSEG's estimates for the quarter ending June 30?

• Earnings per share: 86 cents vs. 92 cents expected
• Revenue: $2.75 billion vs. $2.74 billion expected

Airbnb's net income decreased by 15% year over year, from $650 million to $555 million, resulting in a lower earnings per share of 86 cents compared to 98 cents in the previous quarter.

The vacation rental company forecasted its third-quarter revenue to be between $3.67 billion and $3.73 billion, but also predicted a slowdown in year-over-year growth in its "Nights and Experiences" category. Additionally, the company warned that it was observing shorter booking lead times worldwide and some indications of decreasing demand from American guests.

In Q2 2023, Airbnb reported its highest second-quarter result with 125.1 million Nights and Experiences booked, with continued growth across all regions, particularly in Asia Pacific and Latin America.

Since the launch of its "quality system," the company has removed over 200,000 low-quality listings.

The Federal Reserve has delayed rate cuts until at least next month, and investors are closely monitoring signs that the consumer is under strain. For instance, reported that consumers were feeling "the pinch" from the economy in its latest earnings report, which saw a 1% decline in same-store sales.