Too many fish in the sea?Investors were hoping that Bumble would DTR between the market and online dating apps, but turns out consumers are having a tough time committing.
- Bumble shares sank 13% in extended trading on Wednesday as investors swiped left on its latest earnings report, which posted a wider-than-expected LPS of $0.03 on revenues that beat estimates and grew 18% to come in at $220.5m, with revenue from the Bumble app itself jumping 33% to come in at $169.6m.
- But the online dating company sees a few squabbles in its future. Bumble trimmed its FY forecast to $930m at the top end, citing the impact of pulling operations in Russia and Belarus – which is set to take a $20m toll on revenues – as well as stiff competition from others in the market like Match Group.
- Though Match Group ain’t looking so hot itself. The company fell nearly 18% last week after missing forecasts for revenues and guidance. All of this goes a ways to confirming online dating investors’ fears that the market is becoming too saturated and that people are starting to feel swipe fatigue after the pandemic.
Hanna Balan / Unsplash
Subscribe to Snaps
See the market snapshots that matter and nothing else – sent to your inbox daily. Designed to be read in 20 seconds or less.
Love on topAw, it’s nice to see that even in a market in distress and a seemingly constant wave of bad news – love still finds a way.
- Cupid’s arrow landed on Bumble shares on Wednesday, sending them soaring 10% in extended trading (thank goodness, cuz the stock was nearing an all-time low). It’s got earnings to thank, which beat on both ends with EPS of $0.04 on revenues that grew 24% to hit $211.2m.
- Come rain or shine, people still wanna find love. The balance sheet got a boost from Bumble’s increase to 3m paying users, as well as a 38% jump in revenue for the Bumble app – that being said, its Badoo App and recent purchase of the France-based Fruitz saw a 4% drop in revenue and needs some attention.
- It’ll have to up its game in Europe if the brand wants to compete with Match Group, which owns Tinder and Hinge and kind of dominates the other side of the pond. Speaking of competition, there’s a new match-maker on the scene: Grindr, which specializes in LGBTQ+ dating, has agreed to go public at a $2.1bn valuation. Watch out, Bumble.
ElCarito / Unsplash
A current quarter honeypotBumble creates some buzz with its latest earnings, which promise a full hive of gains in the future.
🔍 Key points:
- Bumble blasted up 41% on Wednesday for its biggest one day gain in over a year, recovering from last week’s severe 31% drop that took prices to an all time low – though the stock is still down nearly 70% from its IPO price just over a year ago.
- It comes despite missing on both ends in Q4 with LPS of $0.08 on revenues that were up over 25% at $208.2m. Don’t start mourning the breakup just yet though – its Bumble app revenue grew an impressive 42% to $150.5m thanks to a 28% increase in paying users to 1.6m.
- The future is expected to be sweet as honey. The platform estimates FY revenue growth of 23% to hit $944m, and Q1 revenue of up to $210m at the high end, which assumes a loss of around $2m because of its decision to pull its app from Russia and Belarus.
freestocks / Unsplash
Voulez-vous coucher avec moi ce soir?Bumble loses its acquisition virginity and gets into bed with French dating app Fruitz.
- Bumble is buying Fruitz for an undisclosed amount. Fruitz is a French dating app, and the acquisition marks its first ever as it tries to strengthen its European foothold.
- Bumble Inc is already the parent company of social network Badoo, but it’s hoping that Fruitz will help gain a wider Gen Z audience, who apparently are big fans of the French app.
- The online dating market will hit a $10bn valuation in 2025, according to Piper Sandler, who also expects the international market to outperform the U.S. market – so there’s tons of room to run for companies like Bumble.
Travis Grossen / Unsplash
Investors swipe leftInstead of “love at first sight” it’s “hate from the first date” for Bumble investors, after earnings came in looking way worse than their profile pic. Catfishing, anyone?
- Bumble lost 20% on Thursday despite Q3 seeing a jump in revenues of nearly 24%. The stock fell to its lowest ever price of $37.80.
- Total paying users dropped 2% from the last quarter, its first sequential decline since its high-profile IPO back in February.
- Fresh pandemic restrictions in regions like Asia have dimmed demand and led to a loss of $10.7m, when analysts were expecting the dating site to break even.
- It’s swiping right on the Metaverse trend. Following in Tinder’s steps, Bumble is exploring how to integrate Web 3.0 into its BFF revamp, and building its own crypto team.
- Four analysts lowered their price target on the stock after earnings were released, and the bears are growling louder.
- Bumble is still bullish despite the slowdown and raised its forecast to $211m.
Bumble gets back into the grooveInvestors are swiping right on Bumble after its latest earnings release, which beat analyst expectations and sent prices shooting up in after-hours trading.
The dating app reported its Q1 earnings, outdoing expectations on both the top and bottom lines with strong sales and impressive user numbers, swinging to a first quarter profit. Bumble reported earnings per share of $1.69 per share on revenues of $170.7 million, compared to expectations of a loss of $0.03 per share on $164.6 million. Revenues more than doubled from the same period last year to reach $79.1 million, and Total Paying Users increased 30% to 2.8 million.
As well as the dating app we all know and love, Bumble also owns online dating service Badoo, which is super popular in Latin America and Europe. Bumble is its biggest earner though, bringing in $112.6 million of Q1 revenue, up from $46.7 million last year (guess lockdown made people frisky), while Badoo and other revenues accounted for $58.1 million. It’s a bit of a role reversal – two years ago, Badoo was the main contributor to growth with 55% of revenue.
In February, Bumble CEO Whitney Wolfe Herd became the youngest woman ever to take a company public in the U.S. The dating and networking service raised $2.2 billion from investors when it went public at $76 per share, 77% above the $43 the company priced its shares at. However, it’s been a rough ride since then, and shares are now trading at around $50. With its latest earnings though, things might be looking up. Guidance-wise, revenue is projected to be in the range of $175 million to $178 million for Q2 and up to $734 million for full year 2021.
“Our results and first quarter momentum validate the strength of our mission and our brand. We were able to combine our safety, mission and women-first narratives throughout the quarter in a manner that drove notable growth in user engagement and retention globally. Safety and accountability are at the foundation of our business and this mission-first approach has been key in advancing our position as leaders in the space. Our impressive results demonstrate that Bumble is more than our apps – our mission is powering a movement,”
said CEO Whitney Wolfe Herd.