04:48 PM EST, 02/13/2025 (MT Newswires) -- Airbnb ( ABNB ) reported a bigger-than-expected fourth-quarter profit as strong demand propelled the vacation rental company's revenue above Wall Street's estimates.

Earnings per share came in at $0.73 during the three months ended December, swinging from a $0.55 loss a year earlier and topping the FactSet-polled consensus for $0.58 in EPS. Revenue increased 12% year-over-year to $2.48 billion, versus the Street's $2.42 billion view.

Shares were up 12% in after-hours trade.

"The increase in revenue was driven by the strong growth in nights stayed and a modest increase in n (average daily rate), as well as our monetization efforts, including the expansion of our guest travel insurance and introduction of an additional service fee amount for cross-currency booking," Airbnb ( ABNB ) said in a shareholder letter.

Nights and experiences booked grew 12% to 111 million, compared with the market view indicating 108.7 million. Gross booking value, which includes host earnings, service and cleaning fees, and taxes, jumped 13% annually to $17.6 billion, the company said.

For the first quarter, Airbnb ( ABNB ) forecast revenue of $2.23 billion to $2.27 billion, reflecting growth of 4% to 6%. The consensus is for $2.3 billion. The timing of Easter last year and the inclusion of leap day would likely result in an unfavorable comparison of about three percentage points on a year-over-year basis, the company said.

The annual growth rate of nights and experiences booked in the ongoing three-month period is expected to be "relatively stable" annually after excluding leap day, according to the letter.

Airbnb ( ABNB ) expects adjusted earnings before interest, taxes, depreciation, and amortization margin of at least 34.5%, versus 36% reported for 2024.The company said it plans to invest $200 million to $250 million to launching and scaling new businesses later in 2025.

"The impact of these investments on our quarterly adjusted EBITDA margin will be the most pronounced during the first nine months of 2025 due to the timing of when we introduce these new offerings," Airbnb ( ABNB ) said. "We anticipate a more significant contribution to revenue growth as these businesses scale over the coming years."