Airbnb Inc. shares gained about 4% in morning trading after the company released fourth-quarter results that exceeded analyst expectations. Revenue reached $2.78 billion, up 12% year over year, while gross bookings and nights and experiences booked also came in above forecasts.

EBITDA surpassed Wall Street consensus, confirming the resilience of the company’s business model amid ongoing platform investments. Management highlighted the impact of product improvements, including the launch of Reserve Now, Pay Later, updates to cancellation policies, and more transparent pricing.

The first-quarter outlook was also optimistic, with projected revenue of $2.61 billion at the midpoint, above market expectations. Airbnb expects EBITDA margin to remain roughly in line with last year as efficiency gains are reinvested into technology, including artificial intelligence, and marketing initiatives.

After the initial surge, shares stabilized around $120.77 per share, still about 25% below their 52-week high. Despite short-term volatility, the market viewed the report as confirmation of steady growth and further recovery potential.