Yahoo Finance Bumble (BMBL) Q4 Loss Widens Y/Y, Bumble App Drives Revenues
Bumble Inc. BMBL reported a diluted loss of 85 cents per share for fourth-quarter 2022, much wider than the loss of 7 cents per share reported in the year-ago quarter. The Zacks Consensus Estimate for loss was pegged at 1 cent per share.
Total Revenues beat the Zacks Consensus Estimate by 2.37% and increased 16.7% to $241.6 million. This includes an unfavorable impact of $12.7 million from foreign currency movements year over year. The top-line growth was driven primarily by growth in Bumble App.
Total Paying Users increased 14.4% to 3.4 million, compared with 3 million.
Bumble Inc. Price, Consensus and EPS Surprise
Bumble Inc. price-consensus-eps-surprise-chart | Bumble Inc. Quote
Top-Line Details
Bumble App revenues grew 27.7% to $190.8 million, compared with $149.4 million reported in the year-ago quarter. This includes an unfavorable impact of $7.1 million from foreign currency movements year over year.
Bumble App revenue growth was driven by a strong 35% increase in paying users to 2.2 million. The strong growth in paying users was driven by a number of factors, including strong registration and re-engagement rates, successful international expansion and product improvements that drove payer penetration.
Badoo App and Other revenues declined 11.9% to $50.8 million, compared with $57.6 million. This includes an unfavorable impact of $5.6 million from foreign currency movements year over year. Badoo App and Other paying users declined 11% year over year to 1.2 million. The impact of our exit from Russia and Belarus roughly a 12% negative impact to growth.
Total Average Revenue per Paying User (ARPPU) increased to $23.01, compared with$22.69.
Bumble App's ARPPU was $28.64, down 6% year over year and 1% sequentially. The is primarily due to country mix and FX impacts, partially offset by pricing optimization initiatives.
Badoo App and Other ARPPU declined 6% year over year to $12.48, primarily due to FX and country mix, partially offset by ongoing pricing optimization work.
Operating Details
Adjusted EBITDA was $60.5 million (25% of revenues) compared with $54.8 million reported in the year-ago period.
On a non-GAAP basis, excluding stock-based compensation and other non-cash or one-time items, total non-GAAP operating expenses were $182 million, up 19% year over year.
Sales and marketing expenses grew 14% year over year to $65 million. G&A expenses were $34 million compared with $28 million reported in the year-ago quarter. Product development expenses were $16 million compared with $14 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, total cash and cash equivalents were $402.6 million and total debt was $625.0 million. As of Sep 30, 2022, total cash and cash equivalents were $365.1 million and total debt was $626.0 million.
Guidance
For first-quarter, Bumble expects total revenues to be between $238 million and $243 million, representing growth rate of 15% year over year at the midpoint of range. The outlook assumes approximately $10 million of year-over-year headwinds related to FX and the conflict in Ukraine, primarily in Badoo. Excluding the impact, total revenue growth outlook would have been 19% at the midpoint.
The company expects Bumble App revenues to be between $190 million and $193 million, representing growth rate of 24% year-over-year at the midpoint. Excluding FX headwinds, guidance for Bumble revenue growth rate would be 27%.
For full year 2023, Bumble estimates total revenues to grow between 16% and 19% on a year-over-year basis.
Zacks Rank & Stocks to Consider
Bumble currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Computer and Technology sector are Airbnb ABNB, Baidu BIDU, and Fabrinet FN. While Airbnb and Fabrinet sport a Zacks Rank #1 (Strong Buy), Baidu carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Airbnb’s first-quarter 2023 earnings has been revised northward from breakeven to 14 cents per share over the past seven days. For 2023, earnings estimates have moved up by 52 cents to $3.38 per share in the past seven days.
ABNB's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 57.2%. Shares of the company have declined 22.1% in the past year.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past 30 days. For fiscal 2023, earnings estimates have moved north by 24 cents to $7.71 per share in the past 30 days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 22.4% in the past year.
The Zacks Consensus Estimate for Baidu’s fourth-quarter 2022 earnings has been revised 49 cents southward to $2.14 per share over the past 30 days. For 2022, earnings estimates have dropped by 3.4% to $8.64 per share over the past 30 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 50.2%. Shares of the company have lost 7.2% in the past year.
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