Published - August 4th, 2023 @ 3:22 PM (GMT+2)

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Airbnb's (NASDAQ:ABNB) Q2 of 2023 it marked a significant milestone with the highest number of nights and experiences booked in the company's history. Gross booking value rose 13% to $19.1 billion, surpassing analysts' $18.99 billion consensus. Nights and occasions booked increased by 11% from last year to 115.1 million, although this was slightly below the 117.6 million StreetAccount consensus.

Regional Growth & Pricing Strategy:
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The San Francisco-based firm grew in all regions, with Asia Pacific notching the most substantial increase. However, a move to mitigate price hikes led to a 1% uptick in the average daily rate globally and a 1% decrease in North America. The gross booking value per night was up 1% year over year at $166.01.

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Analysts have noted that demand for hotels in the U.S. has remained subdued as Americans opt to take advantage of lifted movement restrictions and a stronger U.S. dollar to go abroad for their holidays. Airbnb's affordable option, Rooms, introduced during the quarter, has been a strategic move to cater to this trend.

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Q3 Guidance & Future Prospects:
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For the third quarter, Airbnb guided to revenue of $3.3 billion to $3.4 billion, above consensus, expecting a modest sequential increase in year-over-year growth in nights and experiences booked. Management continues to see opportunities for revenue growth, with CEO Brian Chesky highlighting potential services and advertising platforms that could be added.

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Technology Integration:
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Airbnb has expressed interest in refining its service using OpenAI's GPT-4 large language model. Chesky mentioned the possibility of using this technology to make the company's customer service department more compelling, potentially handling future support requests without human agents.

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Market Performance:
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Despite marginal lowering in premarket trading, Airbnb shares have risen about 64% this year, outperforming the S&P 500 stock index, which is up 17% over the same period.

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