Brian Chesky's Airbnb jumped after hours on its fastest growth in three years, as Cloudflare soared and Atlassian sank
Airbnb beat estimates, raised its outlook and added a $12 billion buyback. Cloudflare posted its best quarter ever. Atlassian beat too, but a slower subscription outlook sent it sharply lower.
Photo: Jakub Zerdzicki / Pexels
After a regular session that sent the Nasdaq into a correction, a handful of earnings reports gave investors something else to trade on Thursday evening. Airbnb and Cloudflare both rose sharply in extended trading after beating estimates and raising their outlooks. Atlassian, which also beat, fell hard on a softer growth forecast. All three had closed lower during the day's selloff.
Airbnb: back in growth mode
Airbnb reported earnings of $3.16 a share for the third quarter, up 43% from a year earlier and ahead of the $2.85 analysts polled by FactSet expected, Investor's Business Daily reported. Revenue rose 19% to $4.87 billion, above the $4.75 billion consensus, according to Investing.com and TipRanks.
Gross booking value, the total value of stays and experiences booked, rose 21% to $27.7 billion, the company said, ahead of the $26.43 billion analysts expected, according to TipRanks. Nights and seats booked rose 16% to 155 million. Net income was $1.9 billion and adjusted EBITDA rose 22% to $2.5 billion, a 52% margin.
"Airbnb is back in growth mode. It's rare for a marketplace of our size to reaccelerate growth, but that's exactly what we're doing." - Airbnb, in its third-quarter shareholder letter
The company said every region delivered double-digit growth in nights booked, that all five of its core markets accelerated, and that first-time booker growth reached 13%, the highest since early 2022.
For the fourth quarter, Airbnb forecast revenue of $3.22 billion to $3.28 billion, or growth of 16% to 18%, ahead of the $3.16 billion consensus, TipRanks reported. It raised its full-year revenue growth forecast to the high teens, from the mid-teens, and announced a new authorization to buy back up to $12 billion of its stock. It said it is closely monitoring developments in EMEA but that underlying global travel demand remains healthy.
The shares had closed the regular session down 3.54% at $170.13, according to Yahoo Finance data. After hours they rose about 7%, according to Investing.com, and 11.7%, according to AskTraders. Brian Chesky, the company's co-founder and chief executive, was set to discuss the results on a call at 5 p.m. ET.
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Cloudflare: its best quarter ever
Cloudflare reported third-quarter revenue of $782.5 million, up 39% from a year earlier, against the $736.8 million analysts expected, and adjusted earnings of 38 cents a share against a 34-cent estimate, according to the company and Investing.com. It raised its full-year revenue forecast to $2.963 billion to $2.964 billion, above the $2.87 billion consensus, and guided fourth-quarter revenue to $845 million to $846 million.
"The third quarter was Cloudflare's best quarter ever. We crossed $3 billion in annualized revenue with revenue of $782 million, up 39% year over year." - Matthew Prince, Cloudflare co-founder and CEO, in the company's earnings release
The stock had fallen 8.28% to $244.51 in the regular session, according to Yahoo Finance data, before jumping 17% after hours, Investing.com reported.
Atlassian: a beat that wasn't enough
Atlassian reported adjusted earnings of $1.65 a share on revenue of $1.77 billion, up 24%, against estimates of $1.43 and $1.71 billion, Investing.com reported. Its second-quarter revenue forecast of $1.83 billion to $1.84 billion was slightly above the $1.82 billion consensus.
Investors focused instead on subscription growth. Atlassian forecast subscription annual recurring revenue growth of about 18.5% for fiscal 2027, down from 23% in the first quarter, according to Investing.com. The shares, which closed down 3.47% at $183.29, fell 16% in extended trading.
Elsewhere after the bell, Five9 fell 18% on a weak fourth-quarter outlook, Investing.com said.
What carries into Friday
Extended-hours trading is thin, so these moves can shift before Friday's open. They also land against a difficult backdrop: the S&P 500 fell 4.36% on Thursday, and the October jobs report is due at 8:30 a.m. ET Friday. Airbnb's results offer a read on consumer travel demand, while Cloudflare's and Atlassian's show how differently investors are treating software companies as the AI trade comes under pressure.
