Latest news with #BMBL
Yahoo
3 days ago
- Business
- Yahoo
BMBL Q1 Earnings Call: Focus Shifts to Member Quality and Profitability Amid Revenue Decline
Online dating app Bumble (NASDAQ:BMBL) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 7.7% year on year to $247.1 million. On the other hand, next quarter's revenue guidance of $239 million was less impressive, coming in 1.8% below analysts' estimates. Its non-GAAP profit of $0.22 per share was 40% below analysts' consensus estimates. Is now the time to buy BMBL? Find out in our full research report (it's free). Revenue: $247.1 million vs analyst estimates of $246.4 million (7.7% year-on-year decline, in line) Adjusted EBITDA: $64.4 million vs analyst estimates of $61.74 million (26.1% margin, 4.3% beat) Revenue Guidance for Q2 CY2025 is $239 million at the midpoint, below analyst estimates of $243.4 million EBITDA guidance for Q2 CY2025 is $81.5 million at the midpoint, above analyst estimates of $58.94 million Operating Margin: 18.1%, in line with the same quarter last year Paying Users: 4.01 million, in line with the same quarter last year Market Capitalization: $541.2 million Bumble's first quarter results reflected a deliberate pivot towards enhancing member quality and refocusing the business on sustainable, long-term growth. Founder and CEO Whitney Wolfe Herd emphasized the company's renewed commitment to high-quality user experiences, noting that the pandemic-era strategy of prioritizing rapid user growth through performance marketing led to a decline in match quality and overall member satisfaction. Wolfe Herd stated, 'When you scale for scale's sake, the quality experience of finding matches can start to degrade.' Management attributed the current trends to intensified efforts to remove bots and low-quality profiles, as well as investments in trust and safety features, all of which are intended to rebuild the brand's reputation for authentic connections. Looking ahead, Bumble's forward guidance is shaped by a restructuring of its user acquisition strategy and ongoing cost control initiatives. Management expects short-term headwinds—including a reduction in paying users—as they accelerate efforts to improve the member base's quality and shift away from performance marketing. Wolfe Herd outlined that, 'We have to shrink a little bit before we grow,' signaling a willingness to accept near-term declines to reset the platform for future growth. The company also plans to leverage AI-driven personalization, roll out new product updates, and focus on member engagement metrics rather than headline payer numbers. CFO Ron Fior added that ongoing cost savings and a return to organic marketing initiatives are expected to bolster profitability over the coming quarters. Management cited the need to rebuild member trust and product relevance after years of prioritizing volume over user quality. The shift has led to a strategic overhaul of both operations and technology. Member base overhaul: Bumble intensified efforts to remove bots, scammers, and low-quality profiles, aiming to foster a more trusted and relevant community. Wolfe Herd explained that user experience and word-of-mouth growth suffered when the platform prioritized rapid scaling over genuine connections, so the focus has returned to cultivating high-quality interactions. Algorithm modernization: The company is accelerating updates to its personalized matching algorithm by integrating advanced AI and machine learning. Early testing has shown improved relevancy and match rates, which management believes will become a key differentiator as these updates are rolled out. Reduced marketing spend: Bumble has significantly cut performance marketing and non-organic user acquisition spend, reallocating resources towards organic and brand marketing. Interim CFO Ron Fior noted a $20 million reduction in marketing budget for next quarter, with further cuts anticipated as the company seeks to attract more engaged users. Leadership and organizational changes: Since Wolfe Herd's return as CEO, new senior leaders in product, technology, communications, and legal have joined the company, including a new CTO. The search for a permanent CFO continues, with the interim CFO remaining in place until then. Cost optimization: The company identified $15 million in near-term operating cost savings, primarily through restructuring and efficiency measures. These savings are expected to be realized largely in the second half of the year, supporting Bumble's plan to maintain profitability despite anticipated top-line pressure. Bumble's outlook is shaped by efforts to improve member quality, leverage AI in matching, and maintain cost discipline while facing near-term user and revenue headwinds. Transition to quality over quantity: Management expects a near-term reduction in paying users as the company eliminates low-quality and unverified accounts, but anticipates this will lead to higher engagement and increased monetization potential over time as user trust improves. AI-powered product enhancements: The company is investing in AI-driven features to boost match relevance, user profile quality, and in-app safety. Wolfe Herd detailed plans to launch a new 'Discover' tab and member coaching hub, both intended to strengthen user engagement and lay the groundwork for future product monetization. Continued cost control: With a focus on operational efficiency, Bumble will maintain reduced marketing and operating costs in the near term. While some of these savings will be redirected to organic brand marketing later in the year, management believes ongoing discipline will help protect margins during the transition period. In the coming quarters, the StockStory team will monitor (1) the impact of quality-focused user curation on engagement and retention, (2) the effectiveness of AI-driven features in improving match outcomes and user satisfaction, and (3) progress on cost savings and organizational changes. The success of upcoming product launches, including enhancements to Bumble BFF and the coaching hub, will also serve as important indicators of execution. Bumble currently trades at a forward EV/EBITDA ratio of 2.3×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
22-05-2025
- Business
- Yahoo
1 Unprofitable Stock Worth Your Attention and 2 to Question
Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth. A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, here is one unprofitable company that could turn today's losses into long-term gains and two that could struggle to survive. Trailing 12-Month GAAP Operating Margin: -67% Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center. Why Does BMBL Fall Short? Decision to emphasize platform growth over monetization has contributed to 4.9% annual declines in its average revenue per buyer Forecasted revenue decline of 11.1% for the upcoming 12 months implies demand will fall off a cliff Free cash flow margin dropped by 4.4 percentage points over the last few years, implying the company became more capital intensive as competition picked up At $5.76 per share, Bumble trades at 2.5x forward EV/EBITDA. To fully understand why you should be careful with BMBL, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: -135% Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance. Why Do We Think CHGG Will Underperform? Struggled with new customer acquisition as its services subscribers averaged 13.4% declines Overall productivity fell over the last few years as its plummeting sales were accompanied by a decline in its EBITDA margin Sales were less profitable over the last three years as its earnings per share fell by 30.8% annually, worse than its revenue declines Chegg is trading at $1.01 per share, or 1.7x forward EV/EBITDA. Read our free research report to see why you should think twice about including CHGG in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: -10.8% Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations. Why Does WK Stand Out? Ability to secure long-term commitments with customers is evident in its 19.5% ARR growth over the last year Forecasted revenue growth of 16.9% for the next 12 months suggests stronger momentum versus most peers Superior software functionality and low servicing costs are reflected in its stellar gross margin of 76.7% Workiva's stock price of $68.61 implies a valuation ratio of 4.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Reddit vs. Bumble: Which Social Networking Stock is a Better Buy?
Reddit RDDT and Bumble BMBL operate social networking platforms that facilitate user-generated content and community engagement, offering investors exposure to the social networking sector. RDDT serves as a vast network of communities where users can discuss a wide range of topics, while BMBL offers dating, friendship, and professional networking services, emphasizing user interaction and Mordor Intelligence report, the global social networking market size is projected to be valued at $95.33 billion in 2025, and is expected to reach $209.82 billion by 2030, witnessing a CAGR of 17.09% during the forecast period from 2025 to 2030. RDDT and BMBL are likely to benefit from the significant growth opportunity highlighted by the rapid pace of or BMBL — Which of these Social Networking stocks has the greater upside potential? Let's find out. Reddit is benefiting from the continued expansion of its advertising business, higher user engagement, and the company's growing artificial intelligence (AI) initiatives. Ad revenues increased 61% year over year to $358.6 million in the first quarter of the reported quarter, weekly active users grew 31% to 401 million, and daily active users rose 31% to 108 million, increasing engagement and ad enhanced its search capabilities, making it easier for users to find relevant content and communities. In the first quarter of 2025, Reddit Answers, RDDT's AI-powered search tool, reached one million weekly users and expanded globally, starting with Australia and the United company's expanding portfolio has been a key catalyst. In May 2025, RDDT enhanced Reddit Pro with streamlined profile setup and new tools that allow businesses to showcase community conversations. These updates make it easier for brands to build trust, connect authentically, and engage with Reddit's vast network of communities. BMBL is benefiting from enhanced user experience through new features, AI-driven personalized matching, and strong growth in its Bumble BFF friendship on this momentum, the company is investing in new features like the Discover tab, safety tools like ID verification, date review, and an upcoming coaching hub, which are designed to improve user experience and engagement. It is also investing in Bumble BFF to grow its friendship platform, expanding the brand beyond just dating. The focus on Bumble BFF has been noteworthy, as it has become a key growth area with more than one million active users, especially popular with Gen Z and young professionals, further expanding the brand's company is also rapidly enhancing its personalized matching algorithm using AI and machine learning to deliver more relevant matches, which is already showing positive early results. Moreover, BMBL is actively removing bots, scammers, and low-quality profiles while fostering a verified, trusted community. This effort increases member trust and encourages better engagement, which is critical for long-term sustainable growth. In the year-to-date period, shares of RDDT and BMBL have lost 34% and 30%, respectively. The dip in RDDT and BMBL's share price is due to the challenging macroeconomic environment. A broader market weakness in the tech sector and persistent fear over mounting tariffs have added to the pressure. Intense competition also remained a headwind. Image Source: Zacks Investment Research Valuation-wise, RDDT shares are currently overvalued as suggested by a Value Score of F. BMBL shares are trading cheap as suggested by a Value Score of terms of the forward 12-month Price/Sales, RDDT shares are trading at 9.71X, which is higher than BMBL's 0.62X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for RDDT's 2025 earnings is pegged at $1.21 per share, which has increased 16.3% over the past 30 days, indicating a 136.34% rise year over year. Reddit Inc. price-consensus-chart | Reddit Inc. Quote The Zacks Consensus Estimate for BMBL's 2025 earnings is pegged at 86 cents per share, which has risen 32.3% over the past 30 days, indicating a 118.66% increase year over year. Bumble Inc. price-consensus-chart | Bumble Inc. Quote While both RDDT and BMBL stand to benefit from the booming social networking market, BMBL offers greater upside potential with stronger earnings growth, cheaper valuation, and expanding platforms beyond dating. Its focus on expanding portfolio, AI-driven personalization, and Gen Z engagement positions it well for long-term RDDT's expanding advertising business increasing international reach, and improving the user experience with upgraded search and discovery features, the company is suffering from intense competition from other social media platforms, which is consistently affecting user engagement and market share in advertising. Stretched valuation also remains a Bumble carries a Zacks Rank #2 (Buy), making the stock a stronger pick than Reddit, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bumble Inc. (BMBL) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Bumble (NASDAQ:BMBL) Posts Q1 Sales In Line With Estimates, Stock Soars
Online dating app Bumble (NASDAQ:BMBL) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 7.7% year on year to $247.1 million. On the other hand, next quarter's revenue guidance of $239 million was less impressive, coming in 2% below analysts' estimates. Its GAAP profit of $0.13 per share was 14.3% below analysts' consensus estimates. Is now the time to buy Bumble? Find out in our full research report. Bumble (BMBL) Q1 CY2025 Highlights: Revenue: $247.1 million vs analyst estimates of $246.4 million (7.7% year-on-year decline, in line) EPS (GAAP): $0.13 vs analyst expectations of $0.15 (14.3% miss) Adjusted EBITDA: $64.4 million vs analyst estimates of $61.74 million (26.1% margin, 4.3% beat) Revenue Guidance for Q2 CY2025 is $239 million at the midpoint, below analyst estimates of $243.8 million EBITDA guidance for Q2 CY2025 is $81.5 million at the midpoint, above analyst estimates of $58.94 million Operating Margin: 18.1%, in line with the same quarter last year Free Cash Flow was $40.83 million, up from -$8.57 million in the previous quarter Paying Users: 4.01 million, in line with the same quarter last year Market Capitalization: $453.2 million 'Since I returned in mid-March, we have set an accelerated path to return to sustainable, long-term growth,' said Whitney Wolfe Herd, Founder & CEO of Bumble Inc. Company Overview Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center. Sales Growth A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Bumble's 9.4% annualized revenue growth over the last three years was mediocre. This fell short of our benchmark for the consumer internet sector and is a rough starting point for our analysis. Bumble Quarterly Revenue This quarter, Bumble reported a rather uninspiring 7.7% year-on-year revenue decline to $247.1 million of revenue, in line with Wall Street's estimates. Company management is currently guiding for a 11% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 7.9% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and suggests its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.
Yahoo
04-04-2025
- Business
- Yahoo
1 Small-Cap Stock for Long-Term Investors and 2 to Think Twice About
Investors looking for hidden gems should keep an eye on small-cap stocks because they're frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets. Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one small-cap stock that could be the next 100 bagger and two that could be down big. Market Cap: $446.5 million Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center. Why Does BMBL Worry Us? Decision to emphasize platform growth over monetization has contributed to 3.9% annual declines in its average revenue per buyer Estimated sales decline of 8.5% for the next 12 months implies a challenging demand environment Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 3.6% annually Bumble is trading at $4.14 per share, or 1.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BMBL. Market Cap: $521.7 million The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles. Why Should You Sell CAL? Products and services have few die-hard fans as sales have declined by 1.4% annually over the last five years Projected sales for the next 12 months are flat and suggest demand will be subdued Underwhelming 2.4% return on capital reflects management's difficulties in finding profitable growth opportunities Caleres's stock price of $14.39 implies a valuation ratio of 5x forward price-to-earnings. Check out our free in-depth research report to learn more about why CAL doesn't pass our bar. Market Cap: $7.62 billion Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses. Why Are We Positive On HRB? Disciplined cost controls and effective management resulted in a strong two-year operating margin of 21.4% Industry-leading 49% return on capital demonstrates management's skill in finding high-return investments, and its rising returns show it's making even more lucrative bets Returns on capital are growing as management capitalizes on its market opportunities At $56.10 per share, H&R Block trades at 5.4x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
