Bumble Inc. Announces Second Quarter 2024 Results
Bumble Inc. (NASDAQ: BMBL) today reported financial results for the second quarter ended June 30, 2024.
“Our first chapter of the Bumble App launch delivered better women’s experiences and improved engagement,” said Lidiane Jones, CEO of Bumble Inc. “We are pleased with these early wins but it’s evident that to reignite the user growth engine for Bumble Inc. in the long term, we need to take a firm stance towards delivering customer value that goes beyond this launch. We are confident that the steps we are taking to strengthen our ecosystem, customer experience, and revenue strategy will revitalize our growth by making Bumble the best place for people to find successful and healthy connections in their lives.”
Second Quarter 2024 Financial and Operational Highlights:
(All comparisons relative to the Second Quarter 2023)
Total Revenue increased 3.4% to $268.6 million, compared to $259.7 million. This includes an unfavorable impact of $3.4 million from foreign currency movements year over year.
Bumble App Revenue increased 4.8% to $218.0 million, compared to $208.0 million. This includes an unfavorable impact of $2.5 million from foreign currency movements year over year.
Badoo App and Other Revenue decreased 2.2% to $50.6 million, compared to $51.8 million. This includes an unfavorable impact of $0.9 million from foreign currency movements year over year.
Total Paying Users increased to 4.1 million, compared to 3.6 million.
Total Average Revenue per Paying User (“ARPPU”) decreased to $21.37, compared to $23.23.
Net earnings were $37.7 million, or 14.0% of revenue, compared to net earnings of $9.3 million, or 3.6% of revenue.
Adjusted EBITDA was $75.0 million, or 27.9% of revenue, compared to $67.3 million, or 25.9% of revenue.
“We delivered second quarter results that were largely in line with our expectations,” said Anu Subramanian, CFO of Bumble Inc. “We are resetting our guidance today to reflect actions we are taking to position Bumble to reignite user growth, deliver improved customer value, and drive long-term revenue growth. We believe our strong balance sheet and cash flow generation give us the flexibility we need to return capital to shareholders while creating lasting value.”
Key Operating Metrics:
The following metrics were calculated excluding paying users and revenue generated from Official, advertising and partnerships or affiliates and, for periods prior to the fourth quarter of 2023, excluding paying users and revenue generated from Fruitz. Beginning in the fourth quarter of 2023, paying users and revenue generated from Fruitz are included in our key operating metrics. Prior period information and key operating metrics have not been recast to include paying users and revenue generated from Fruitz. Please refer to the Definitions section for more information.
Balance Sheet:
As of June 30, 2024, total cash and cash equivalents were $286.7 million and total debt was $618.9 million.
Information about Bumble’s use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”
Financial Outlook:
A reconciliation of Adjusted EBITDA to GAAP net earnings (loss) and Adjusted EBITDA margin growth to GAAP net earnings (loss) margin growth which is growth in GAAP net earnings (loss) as a percentage of revenue has not been provided for the outlook included herein as the quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-GAAP adjustment for certain legal, tax and regulatory reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.
Bumble anticipates the following for the third quarter ending September 30, 2024 and full year ending December 31, 2024:
Third Quarter 2024:
Total Revenue in the range of $269 million to $275 million, which includes:
Bumble App Revenue of $217 million to $221 million.
Adjusted EBITDA in the range of $77 million to $80 million.
Full Year 2024:
Total Revenue year over year growth in the range of 1% to 2%.
Bumble App Revenue year over year growth in the range of 1.5% to 2.5%.
Adjusted EBITDA margin growth of at least 200 basis points.
Actual results may differ materially from Bumble’s financial outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.