On Tuesday, Airbnb (ABNB) issued an earnings report which beat Wall Street’s predictions on revenues and earnings, however the fourth quarter guidance issued by the company fell short of analyst’s expectations.

Shares fell roughly 3.5% following the report’s release in after-hours trading.

The report showed adjusted earnings per share came in at $1.79, above analysts’ estimates of $1.53. Revenue was $2.88 billion, above the expected $2.83 billion.

There were 99.7 million nights and experiences booked, which fell short of the 99.9 million expected.

The company noted that the third quarter of 2022 was its, “most profitable quarter ever.”

Despite that, the company predicted that fourth quarter revenue would fall between $1.8 billion and $1.88 billion. Analysts had predicted the lower end of the projection would be $1.86 billion.

AirBnb was buffeted by macroeconomic headwinds, as the dollar’s strength, combined with inflation, and the Federal Reserve cooling the economy cut into profits. 7% of AirBnb’s revenue was trimmed away by foreign exchange headwinds, eliminating 15% of the company’s net-income.

In a statement, the company said, “Our Q3 results demonstrate that Airbnb continues to drive growth and profitability at scale. Regardless of continued macro uncertainties, we believe we’re well-positioned for the road ahead.”

The company predicts its business could perform quite well during a downturn, saying in a shareholder letter, “Just like during the Great Recession in 2008 when Airbnb started, people are especially interested in earning extra income through hosting.” The company did however acknowledge the return of full cross-border travel could be “choppy.”

The report came after last weeks raft of brutal tech-stock earnings reports, where Meta, Amazon, and other giants were hammered by the cooling economy.