Airbnb's second-quarter profit fell 15% despite its revenue rising 11% on stronger bookings

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Airbnb says its profit fell 15% in the second quarter from a year earlier, as higher income taxes cut into the short-term rental giant’s bottom line even as bookings and revenue rose

Airbnb says its profit fell 15% in the second quarter from a year earlier, as higher income taxes cut into the short-term rental giant's bottom line even as bookings and revenue rose.

The profits fell short of Wall Street's expectations and Airbnb's stock tumbled 16% in after-market trading.

The San Francisco-based company reported on Tuesday net income of $555 million, or 86 cents per share, for the three months ended June 30. That compares with net income of $650 million, or 98 cents per share, in the same quarter last year.

Analysts’ consensus estimates called for earnings of 91 cents per share, according to FactSet.

Revenue rose 11% from a year earlier to $2.75 billion, slightly higher than what analysts forecast.

The vacation-rental platform said it booked 125.1 million nights and experiences in the second quarter, a 9% increase from a year earlier.

The average daily rate rose 2% to $170. The company said it expects that to increase modestly on an annual basis in the third quarter.

While booking growth was strong, management said that in July it noticed that many customers were opting to reserve an Airbnb property within a couple of weeks of when they need to stay, rather than doing so months in advance.

“We are seeing shorter booking lead times globally and some signs of slowing demand from U.S. guests,” CEO Brian Chesky said during a conference call with analysts. “We’re watching these trends closely, along with the impact any macroeconomic pressures might be causing."

The company factored the trend into its third-quarter outlook.