Latest news with #BumbleApp
Yahoo
08-05-2025
- Business
- Yahoo
Why Bumble (BMBL) Stock Is Trading Up Today
Shares of online dating app Bumble (NASDAQ:BMBL) jumped 23.8% in the afternoon session after the company reported decent first quarter 2025 results which included optimistic EBITDA guidance for next quarter that blew past analysts' expectations. On the other hand, its revenue guidance for next quarter missed. Separately, Bumble named Vivek Sagi as its new Chief Technology Officer, indicating the company's focus on product innovation and AI-led features. Zooming out, we still think this was a decent quarter featuring some areas of strength. Is now the time to buy Bumble? Access our full analysis report here, it's free. Bumble's shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Bumble and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 9 months ago when the stock dropped 40.8% on the news that the company reported second-quarter earnings results. Its revenue missed Wall Street's estimates, and it severely downgraded its full-year revenue guidance from 9.5% year-on-year growth to 1.5% growth. It also lowered the guidance for full year Bumble App payer net addition to 275,000 to 285,000 (vs. previous guidance of 350,000 to 400,000). The guidance implied negative net adds in Q4, which is not a good sign. Overall, this was a weaker quarter. Bumble is down 32.5% since the beginning of the year, and at $5.38 per share, it is trading 56.3% below its 52-week high of $12.30 from May 2024. Investors who bought $1,000 worth of Bumble's shares at the IPO in February 2021 would now be looking at an investment worth $76.52. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
19-02-2025
- Business
- Yahoo
Bumble Shares Plunge 28% as Company Forecasts Revenue Decline in Q1 2025
Bumble Inc. (BMBL, Financials) expects first-quarter 2025 revenue to decline between 7% and 10% year-over-year as the company focuses on strengthening its ecosystem and streamlining operations. Warning! GuruFocus has detected 2 Warning Sign with BMBL. With total sales of $262 million and adjusted profits before interest, taxes, depreciation, and amortization of $73 million, both at the high end of its projection, the company's view matches fourth-quarter results that matched expectations. The business expects first-quarter income between $242 million and $248 million; Bumble App sales are likely to drop 6%-8% year-over-year to fall between $198 million and $202 million. Management blamed the forecasted income drop on continuous attempts to improve the state of the platform, which should have caused a sequential drop of 100,000 to 120,000 paying customers. Fourth-quarter statistics showed resiliency, according to CEO Lidiane Jones; the Bumble App's income exceeded forecasts even if paying customers saw a consecutive drop. She underlined important product changes like a Discover Tab, artificial intelligence-assisted picture picker, and fresh safety features including ID Verification and Share My Date. These projects seek to increase user trust and involvement. Eliminating its Fruitz and Official applications will help the firm to concentrate on its main products, which include the Bumble BFF platform, thereby concentrating its resources. These adjustments are meant to "reaccelerate growth in Bumble App paying users and revenue," Jones stated. The creator and previous CEO of Bumble, Whitney Wolfe Herd, will come back as chief executive in March 2025, a move anticipated to concentrate the brand strategy and product development of the firm. With $65 million left under its approved buyback program, Chief Financial Officer Anu Subramanian said Bumble bought $40 million in shares during the fourth quarter. Reflecting a 28% margin, Bumble stated sales of $1.072 billion and adjusted EBITDA of $304 million for the whole year 2024. The firm concluded the year with $204 million in cash and equivalents and produced $114 million in free cash flow. Geographic mix changes caused average revenue per paying user to drop 8% to $25.17 while fourth-quarter figures revealed a 5% growth in Bumble App paying users to 2.8 million. Seeking to balance free and paid user experiences, management underlined intentions to invest in product momentum and change its revenue model. While management maintained faith in the company's strategic orientation, analysts voiced worries about near-term revenue constraints and paying user reductions during the conference call. Emphasizing the part new safety elements play in reaching this aim, Wolfe Herd stated her emphasis will be on making online dating safer and more interesting. Bumble's perspective highlights a difficult transition time because the business gives long-term involvement top priority above quick expansion. While preserving customer engagementespecially among younger groupsinvestments in technology and platform improvements may strain on profitability, said analysts. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
Bumble Inc (BMBL) Q4 2024 Earnings Call Highlights: Strong Revenue Performance Amid ...
Total Revenue: $262 million for Q4, at the high end of the outlook. Bumble App Revenue: $212 million, above the high end of the outlook, down 4% year-over-year. Total Paying Users: Grew 5% to 4.2 million in Q4. ARPPU (Average Revenue Per Paying User): Declined 9% to $20.58. Adjusted EBITDA: $73 million for Q4, representing 28% margins. Free Cash Flow: $114 million for the year 2024. Cash and Cash Equivalents: $204 million at year-end 2024. Share Repurchase: $40 million worth of shares repurchased in Q4; $214 million for the full year 2024. Q1 2025 Revenue Outlook: Expected between $242 million and $248 million, a decrease of 7% to 10%. Q1 2025 Adjusted EBITDA Outlook: Estimated between $60 million and $63 million, representing a margin of 25% at the midpoint. Warning! GuruFocus has detected 2 Warning Sign with BMBL. Release Date: February 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bumble Inc (NASDAQ:BMBL) reported total revenue and adjusted EBITDA at the high end of their respective ranges for Q4 2024. The Bumble App revenue outperformed guidance, indicating strong performance in their core product. The company generated free cash flow of $114 million for the year, showcasing strong financial discipline. Bumble Inc (NASDAQ:BMBL) has made significant progress on its product roadmap, focusing on innovation and customer experience. The introduction of new features like the Discover tab and AI-powered tools aims to enhance user engagement and safety. Bumble Inc (NASDAQ:BMBL) reported a decline in ARPPU by 9% to $20.58, indicating challenges in monetization. The company expects a sequential decline in paying users in Q1 2025, due to ongoing ecosystem health initiatives. Badoo App and other revenue declined by 7%, reflecting challenges in diversifying revenue streams. The decision to sunset Fruitz and Official indicates a need to refocus resources, which may impact short-term growth. Bumble Inc (NASDAQ:BMBL) anticipates adjusted EBITDA margins to contract in 2025 due to revenue headwinds and investments in product and technology. Q: Whitney, as you return to Bumble in an operating role, what is your perspective on the online dating industry landscape in 2025, and what are the opportunities and challenges? A: Whitney Wolfe Herd, Founder and Executive Chair, emphasized the strong demand for love and connection, noting that while technology has made finding love easier, it has also led to feelings of judgment and insecurity. She aims to bring confidence and joy back to the dating experience by focusing on relevant matches and safe interactions, leveraging her extensive experience in the industry. Q: Could you provide an update on the CFO search and your priorities for a new CFO? A: Whitney Wolfe Herd stated that the CFO hire is a top priority, and they are actively interviewing candidates. The focus is on finding a leader who suits the current business environment and future goals. She also affirmed her long-term commitment to Bumble, expressing her passion and dedication to the company's mission. Q: Can you expand on the Discover tab feature and its impact on user engagement? A: Lidiane Jones, CEO, explained that the Discover tab, part of the winter release, helps users find matches through shared interests, enhancing customer experience and engagement. Early testing shows increased user engagement and more matches, supporting Bumble's strategy to drive long-term revenue growth. Q: How does Bumble plan to address the trend of younger users being hesitant to enter the dating market? A: Lidiane Jones highlighted the importance of providing relevant matches and ensuring safety, which are key factors for younger users. Bumble's focus on innovation and ecosystem health aims to reignite top-of-funnel engagement and attract younger users by addressing these needs. Q: What are the key factors driving the expected contraction in EBITDA margins for Q1 2025? A: Anuradha Subramanian, CFO, noted that revenue headwinds and deliberate investments in product and technology to boost usage and engagement are the main factors. The company is focusing on strengthening its ecosystem and driving innovation, while maintaining discipline in marketing and other expenses. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
