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

Airbnb faces more fundamental threats, perhaps none bigger than the perception among many guests that bookings on the site are no longer a bargain because of high cleaning fees and misleading listings.

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