• Total Revenue: $274 million, down 1% year-over-year, including an unfavorable FX impact of approximately $1 million.
• Total Paying Users: Grew 11% to 4.3 million.
• Total ARPPU: Declined 10% to $21.17.
• Bumble App Revenue: $220 million, declined 1% with an unfavorable FX impact of approximately $1 million.
• Bumble App Paying Users: Grew 10% to 2.9 million.
• Badoo App and Other Revenue: $53 million, 1% lower, but up slightly excluding FX impact.
• Badoo and Other Paying Users: Grew 14% to 1.4 million.
• GAAP Net Loss: $849 million, mainly due to a noncash impairment charge of $892 million.
• Adjusted EBITDA: Increased 10% to $83 million, with a 30% margin, up 290 basis points from the previous year.
• Free Cash Flow: $92 million generated in the quarter.
• Cash and Cash Equivalents: $252 million at the end of Q3.
• Stock Repurchase: $90 million repurchased in Q3, with a total of $361 million returned to shareholders since the inception of the buyback program.
• Full-Year 2024 Revenue Outlook: $1.066 billion to $1.072 billion, representing growth of 1.6% at the midpoint.
• Q4 2024 Revenue Outlook: $256 million to $262 million, representing a 5% year-over-year decline at the midpoint.

• Warning! GuruFocus has detected 3 Warning Sign with BMBL.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bumble Inc (NASDAQ:BMBL) delivered total revenue and Bumble app revenue within their Q3 outlook ranges.
• The company exceeded its adjusted EBITDA expectations for Q3, demonstrating strong operational focus.
• Bumble Inc (NASDAQ:BMBL) repurchased $120 million in stock, showcasing solid cash flow and financial discipline.
• The company is making progress on its transformation initiatives, including attracting top talent and increasing execution velocity.
• Bumble Inc (NASDAQ:BMBL) is piloting a generative AI-based customer service agent to improve effectiveness and accuracy in case responses.

Negative Points

• Total revenue for Bumble Inc (NASDAQ:BMBL) was down 1% year-over-year, impacted by unfavorable foreign exchange rates.
• The company reported a GAAP net loss of $849 million, primarily due to a noncash impairment charge related to intangible assets and goodwill.
• Bumble app revenue declined 1% year-over-year, with a 10% decline in average revenue per paying user (ARPPU).
• The company expects a 5% year-over-year decline in Q4 revenue at the midpoint of their guidance range.
• Bumble Inc (NASDAQ:BMBL) is in the early stages of its strategic repositioning, which will take multiple quarters to fully realize.

Q & A Highlights

Q: Can you provide more details on the progress and benchmarks for Bumble's strategic initiatives? A: Lidiane Jones, CEO, explained that Bumble is focusing on three primary areas: strengthening the ecosystem, ensuring customer success, and evolving the revenue strategy. The company is optimistic about early progress, particularly in marketing balance and customer acquisition, and plans to expand these efforts in the coming quarters.

Q: How is Bumble balancing buybacks with margin expansion and necessary investments? A: Anuradha Subramanian, CFO, stated that Bumble's capital allocation philosophy includes investing in organic growth, being opportunistic with M&A, and returning capital to shareholders through buybacks. The company aims to balance these priorities, with a focus on top-line growth next year.

Q: What specific actions are being taken to improve ecosystem health and customer experience? A: Lidiane Jones highlighted efforts such as rebalancing marketing strategies to acquire the right users, strengthening organic marketing, and regular product innovation. Safety initiatives, like improved photo moderation and optional ID verification, are also being implemented to enhance customer experience and attract the right users.

Q: What are the key learnings and future priorities for Badoo? A: Lidiane Jones noted that Badoo has seen positive engagement and ARPPU benefits from product changes and marketing rebalancing. Bumble is optimistic about Badoo's potential in the medium to long term, with a focus on customer-centric approaches and complementary offerings to Bumble's customer base.

Q: How is Bumble addressing the Gen Z demographic and potential impacts of upcoming elections? A: Lidiane Jones reported positive engagement from Gen Z women due to organic marketing efforts and product innovations. Historically, elections have not significantly impacted Bumble's business, but the company remains committed to supporting women's experiences and values, which are critical to their customer base.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.