Late Tuesday, Airbnb (ABNB) announced good first-quarter profits growth, benefitting from a strong travel recovery in 2023. However, after the results and a less-than-stellar prediction for the second quarter, Airbnb shares plunged after hours.

Earnings per share increased to 18 cents, compared to a loss of 3 cents per share the previous year. Revenue increased by 20% to $1.82 billion.

FactSet surveyed analysts, who predicted profits of 14 cents per share. Revenue growth was expected to decline for the sixth quarter in a row, climbing 18.8% to $1.79 billion, according to Wall Street.

Nights and experiences booked increased 19% year on year to 121.1 million for the third quarter. Total overnight bookings fell to 88.2 million at the end of the year, down from 100 million in the third quarter. Active listings increased 18% year on year throughout the quarter. In the meanwhile, free cash flow increased 32% to $1.59 billion.

Airbnb expects revenues to increase by 12% to 16% in the second quarter, with a range of $2.35 billion to $2.45 billion. Analysts expected that sales will increase to $2.42 billion for the quarter, up from $2.1 billion in 2022. The company expects adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, “similar to” last year on a nominal basis, but lower on a margin basis as it spends more on marketing.