Airbnb posts $1.2 billion profit in 3Q as revenue jumps 29%

Airbnb reported a record $1.21 billion profit for the third quarter as bookings and average daily rates increased, and the company said Tuesday that demand for short-term rentals remains strong despite uncertainty over the economy. 

The profit was still less than Wall Street expected, however, and the company said bookings growth will slow in the fourth quarter, while average daily rates will also be pressured. 

Airbnb shares fell 4% in extended trading. 

The third-quarter profit, which compared with $834 million in the same quarter last year, amounted to $1.22 per share. Analysts expected $1.47 per share, according to a survey by FactSet.