Bumble Beats First Quarter Estimates, Has Over 3 Million Paying Users

Edward Kim  |

Image source: Bumble

Bumble (BMBL) beat revenue and earnings estimates for the first quarter, driven by sequential user growth of 134,000 that puts total paying users at 3 million.

The company reported $211.2 million in revenue for the quarter, ahead of estimates of $208.3 million and up 24% over the same period last year. Revenue from the Bumble app grew 38% to $155.4 million.

Bumble reported adjusted EBITDA of $49.8 million and net income of $23.9 million, or $0.13 per share, ahead of estimates of $0.12 per share.

The dating service has long distinguished itself from its competitors by requiring women to initiate contact, "shifting old-fashioned power dynamics and encouraging equality from the start."

"I am pleased by our strong first quarter results," said founder and CEO Whitney Wolfe Herd. "Bumble App drove substantial revenue growth across the US and international markets and delivered a significant sequential increase in paying users by continuing to focus on a woman-first experience built upon trust, kindness and safety."

Investment thesis

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Bumble stock had fallen 71% from its September 2021 high of $61.05 through Wednesday's close of $17.63. After the earnings report Wednesday afternoon, shares jumped 27% on Thursday to close at $22.36.

  • Even after the spike on Thursday, the company trades at a market capitalization of just $4.1 billion. We think the stock may have been overvalued last fall, but may have found its footing at current levels.
  • We're seeing recovery in the online dating service sector as a whole, as we hopefully move further away from the worst of the COVID-19 pandemic.
  • We think Bumble is well-positioned to lead the recovery in the sector, given its focus on empowering women and its global footprint with its Bumble and Badoo apps.
  • On the company's earnings call on Wednesday, CEO Whitney Wolfe Herd said, "The strong brand loyalty we have brings [users] back when they're ready to resume dating and extends our lifetime value."
  • Bumble launched an industry-first partnership in Q1 with Bloom, a remote trauma support service that offers online support globally to users of both Bumble and Badoo who report sexual assault or relationship abuse.
  • We have direct knowledge of multiple satisfied Bumble users, who speak highly of the service in comparison to other dating apps.

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Source: Equities News

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