01:36 PM EDT, 05/09/2024 (MT Newswires) -- Airbnb's ( ABNB ) revenue growth is likely to accelerate in the second half of this year, though higher marketing expenses are likely to affect profitability, Wedbush said in a note Thursday.

The firm said a "modestly higher" marketing expense, which is one of the reasons behind the company's lower-than-expected EBITDA guidance for Q2, is likely to persist through yearend.

Airbnb's ( ABNB ) Q2 revenue guidance of $2.68 billion to $2.74 billion is also seen as modestly below analyst estimates and implying slower-than-expected room night growth and slight margin compression, it said.

"We think the room night guidance may ultimately prove conservative and note that bookings in [Q2] are likely back-half weighted and build through the quarter into the beginning of the peak summer travel season," Wedbush said.

According to Wedbush, the company is seeing bookings for stays in Q3 outpacing last year, resulting in a backlog that is expected to drive accelerating revenue growth compared with Q2.

The Paris Summer Olympics from July 26 to Aug. 11 and other large sporting events including the Euro Cup, which will be held from June 14 to July 14, are also considered potential drivers of accelerating growth, the firm said.

Wedbush is maintaining its neutral rating on the stock and price target of $160.

Shares of the company were down 6.6% in recent trading.

Price: 147.51, Change: -10.39, Percent Change: -6.58