Robin Marchant
Bumble’s (NASDAQ:BMBL) stock fell about 36% premarket on Thursday after the company slashed its full-year 2024 revenue growth outlook.
The Austin-based dating app company also missed analysts estimates for the second quarter ended June 30, unlike its bigger peer Match (MTCH), which reported a revenue beat last week.
For the full Year 2024, Bumble expects total revenue’s year-over-year growth to be in the range of 1% to 2%, compared to the prior forecast of 8% to 11%, provided during first quarter results in May.
Bumble App Revenue year-over-year growth range was cut down to 1.5% to 2.5%, versus 9% to 11% previously.
For the third quarter ending Sept. 30, the company expects total revenue in the range of $269M to $275M (midpoint at $272M) which came in below analysts expectations.
The total revenue forecast for the third quarter includes Bumble App Revenue of $217M to $221M.
Second Quarter Metrics:
The company’s total Revenue increased 3.4% year-over-year to $268.6M, but missed analysts estimates.
Bumble App Revenue grew 4.8% year-over-year to $218M. The app’s paying users rose to about 2.82 million, compared to around 2.46 million in the year ago period.
However, Bumble app’s Average Revenue per Paying User, or ARPPU, fell to $25.79 versus $28.21 in the second quarter of 2023.
Badoo App and Other Revenue fell 2.2% year-on-year to $50.6M. Paying users grew to 1.32 million, versus about 1.18 million in the year ago period. Total paying users increased to 4.1 million, compared to 3.6 million in the second quarter of 2023. ARPPU declined to $11.93, versus $12.83.
Total ARPPU decreased to $21.37, compared to $23.23 in the year ago period.
“Our first chapter of the Bumble App launch delivered better women’s experiences and improved engagement,” said Bumble’s CEO Lidiane Jones. “We are pleased with these early wins but it’s evident that to reignite the user growth engine for Bumble Inc. in the long term, we need to take a firm stance towards delivering customer value that goes beyond this launch.”
Net earnings attributable to Bumble shareholders were about $27.40M, compared to $6.75M in the year ago period.
As of June 30, the company’s total cash and cash equivalents were $286.7M and total debt was $618.9M.
