04:58 PM EDT, 08/06/2024 (MT Newswires) -- Airbnb's ( ABNB ) second-quarter earnings declined more than expected as its cost base ballooned while the vacation rental company's revenue advanced above Wall Street's estimates.

Per-share earnings fell to $0.86 during the three months ended June 30 from $0.98 a year earlier, trailing the Capital IQ-polled consensus for $0.91.

Revenue increased 11% year-over-year to $2.75 billion, just above the Street's $2.74 billion view. Nights and experiences booked grew 9% to 125.1 million, but fell short of the view on Visible Alpha indicating 126.4 million.

Expenses rose to $2.25 billion from $1.96 billion amid gains in marketing and administrative costs.

Shares were down 14% in after-hours trading.

Gross booking value, which includes host earnings, service fees, cleaning fees and taxes, jumped 11% annually to $21.2 billion, the company said in a shareholder letter.

For the third quarter, Airbnb ( ABNB ) forecast revenue to grow between 8% and 10% year-over-year, reaching $3.67 billion to $3.73 billion. The Capital IQ-polled consensus is for $3.84 billion.

The annual growth rate of nights and experiences booked in the ongoing three-month period is expected to see "a sequential moderation," the company said. "We are seeing shorter booking lead times globally and some signs of slowing demand from US guests."

Airbnb ( ABNB ) forecast adjusted earnings before interest, taxes, depreciation, and amortization margin to fall year-over-year in the third quarter partly as an expected increase in marketing expenses will likely outpace revenue growth.

For 2024, the company maintained its guidance for adjusted EBITDA margin of at least 35%.

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