Airbnb (NASDAQ:ABNB) experienced a more than 8% drop in its shares during pre-market today, following the company’s provided soft guidance.

The company reported Q1/24 earnings per share (EPS) of $0.41, which was above the analyst expectations of $0.23. Additionally, Airbnb's revenue for the quarter reached $2.14 billion, which exceeded the consensus estimate of $2.06 billion.

The company saw a 9.5% year-over-year increase in nights and experiences booked, totaling about 133 million for the quarter. This growth was driven by a 21% increase in bookings in the Asia-Pacific region and a 19% rise in Latin America, although bookings in North America showed a slight deceleration. For the second quarter, Airbnb expects its revenue to be between $2.68 billion and $2.74 billion, compared to the anticipated $2.74 billion.

Mizuho analysts noted that despite the modest growth in room nights, the first half of 2024 was in line with expectations. They anticipate revenue acceleration in the second half of the year due to summer travel and the Olympics, which should mitigate risks for the full-year consensus. The analysts also pointed out that supply growth continues to exceed demand in the near term, which is a positive indicator that pricing could be adjusted to boost demand in the future.