Airbnb (NASDAQ:ABNB) announced better-than-expected first-quarter earnings, yet shares fell over 4% in pre-market trading after the company issued second-quarter guidance that slightly missed analyst expectations.

The vacation rental platform reported adjusted earnings of $0.24 per share, surpassing analyst forecasts of $0.23. Revenue for the quarter grew 6% year-over-year to $2.27 billion, also exceeding the $2.26 billion consensus estimate.

Looking ahead, Airbnb forecasts second-quarter revenue between $2.99 billion and $3.05 billion, with the midpoint of $3.02 billion falling shy of the $3.03 billion analyst expectation. The company highlights that the earlier Easter holiday in 2024 will contribute roughly two percentage points to Q2 growth, aiding year-over-year comparisons.

Despite the cautious guidance, Airbnb reassured investors of its full-year adjusted EBITDA margin target of at least 34.5%, emphasizing its commitment to cost management and operational efficiency. During Q1, gross booking value increased by 7% to $24.5 billion, while total nights and experiences booked surged by 8% to 143.1 million.

CEO Brian Chesky stressed the focus on long-term strategy, including diversifying offerings beyond accommodations. He acknowledged that Airbnb is entering its next chapter with new expansions in products and services.