Airbnb reported results for the first quarter that were mostly in line with estimates, but the company issued a disappointing revenue forecast for the current period.

Shares declined about 4%.

Here’s how the company did compared to LSEG estimates:

• Earnings per share: 24 cents per share vs. 24 cents expected
• Revenue: $2.27 billion vs. $2.26 billion estimate.

Revenue increased 6% from about $2.1 billion a year ago. Net income fell to $154 million, or 24 cents per share, from $264 million, or 41 cents per share, in the same period a year earlier.

For the second quarter, Airbnb said it expects revenue of between $2.99 billion and $3.05 billion, or $3.02 billion at the middle of the range. Analysts had forecast $3.04 billion in revenue for the current period. The company said it expects the period to include a two percentage point benefit due to Easter timing.

“In the U.S., we’ve seen relatively softer results, which we believe has been largely driven by broader economic uncertainties,” the company said in a letter to shareholders.

While the company said it experienced strong year-over-year growth in North America “despite broad macro uncertainty,” it reported “softness” in travel from Canada to the U.S. toward the end of the quarter.

Tariffs are the story of this earnings season, as investors look for signs that President Donald Trump’s sweeping levies on imports are weighing on costs and consumer spending.

Gross booking value, which measures host earnings, service fees, cleaning fees and taxes, increased 7% year over year to $24.5 billion, in line with estimates. Night and experiences booked rose 8% from a year ago and totaled 143.1 million, compared to the 143.4 million estimate from analysts.

Excluding North America, Airbnb said that nights and experiences grew 11% from a year ago. Nights booked by Canadian guests visiting Mexico jumped 27% from a year ago in March. The company said it expects nights and experiences booked to “moderate” in the current period from the first quarter.

“During April, we saw strong demand for Easter travel from Latin America–which remains our fastest growing region,” Airbnb said.

Airbnb also teased new updates to its app coming later this month that will go “beyond places to stay.” The company said it has removed 450,000 listing since updating its host quality system in 2023.

Airbnb executives will host an earnings call with analysts at 4:30 p.m. ET.

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