Vacation rental company Airbnb on Tuesday forecast third-quarter revenue below Wall Street estimates and reported a smaller second-quarter profit, while warning of weakening demand from U.S. customers.
The company’s shares fell about 12% after the bell.
Domestic travel in the United States has come under pressure since the beginning of the year as more Americans become cautious about spending on travel amid growing economic uncertainty.
The San Francisco-based company reported quarterly profit of $555 million, compared with $650 million a year ago.
Third-quarter revenue is expected to be between $3.67 billion and $3.73 billion, below analysts’ estimate of $3.84 billion, according to data from the London Stock Exchange Group.
Airbnb also expects moderate growth in nights booked in the third quarter and said it was experiencing shorter booking times globally.
Booking time is an important metric in the travel industry and refers to the number of days between the booking date and actual arrival. A shorter booking period may indicate that consumers are booking trips at the last minute, due to increased uncertainty and caution in spending.
Travel booking provider Booking.com also said earlier this month that delivery times had shrunk in the second quarter and were expected to shrink further in the third.
