Airbnb (NASDAQ: ) released a upbeat Q2 revenue forecast, driving pre-market trading up by almost 5%.

Revenues from the company in Q1 were $1.51 Billion, an increase of 70% YoY. This is higher than consensus estimates of $1.45 Billion. The loss per share was 3c, as compared with the $1.95 per share in the previous year.

ABNB had a $17.2 Billion gross booking value, surpassing the consensus estimates at $15.91Billion. Analysts were expecting $163.92. Gross booking value per night and experience booked was $168.07 The analyst estimate of 98.1million was higher than the 102.1 million nights and experiences that were booked.

Airbnb anticipates that revenue will range from $2.03 billion up to $2.13 trillion for the second quarter. This is higher than analyst estimates of $1.97 billion. Airbnb stated that it expected the Nights and Experiences Booked growth to be similar to Q1. ABNB anticipates modest EBITDA margin growth for FY2022. This is in comparison to FY2021.

Raymond James analyst Aaron Kessler reiterated his Market Perform rating despite high valuation, but remains optimistic on the fundamentals.

“1) a large nights and experiences TAM that is increasingly shifting to alternative accommodations; 2) a leadership position and strong brand driving significant organic traffic; 3) ~20% long-term revenue growth driven by a shift to alternative accommodations, global expansion, and continued innovation; 4) ~30% plus long-term EBITDA margins. While we have a positive fundamental outlook, we believe shares are fairly valued at current levels,” Kessler said in a client note.

Scott Devitt from Stifel also reduced the price target by $180.00 to $180.00 each share, down $205.00

“We are modestly raising our estimates reflecting current bookings momentum and expectations for margin expansion, though we remain cautious on share performance from here given (1) uncertain ADR trends in 2H/2023, which will likely limit upside to GBV growth and (2) recent multiple compression at the group level that may signal investor enthusiasm related to the recovery in travel is beginning to wane,” Devitt said in a note.

By Senad Karaahmetovic