Bumble Reports Lower-Than-Expected Loss in First Quarterly Report Since February IPO

By Mariliana Fotopoulou Thursday, March 11, 2021

Today, Bumble, a company that operates popular dating apps, released its first quarterly earnings report since its IPO, or initial public offering, to send its shares higher in pre-open Thursday.

A woman using a smartphone.

Good Quarterly Results and Guidance

Bumble said it recorded a Q4 loss of $26.1 million, or $0.01 per share, which is better than the loss of $0.13 per share expected from the surveyed market analysts. Last year, the company made a net profit of $17.2 million.

Bumble saw its business revenues rise 31% year-over-year (YOY) to $165.6 million, which is again higher than the expected $163.3 million. Total average revenue per user, a closely-watched metric in this industry, rose to $20.02 from $19.99 YOY.

Higher business revenues and lower-than-expected losses were helped by 2.7 million paying users in Q4 across both apps, marking a 32.5% jump from Q4 of 2019.

Bumble stock gained 8.5% in pre-market trading hours on Thursday, following a lower-than-expected Q4 loss.

“We are committed to our mission, our customers and to advancing the business, which fueled our strong fourth quarter and full year 2020 results,” said Whitney Wolfe Herd, founder and CEO of the company.

Going forward, the dating business said it is expecting to record business revenues between $163 million and $165 million. For the full year, the company is projecting business revenue to come in between $716 million and $726 million.

“Looking ahead, we remain focused on driving scale, investing in our users and expanding internationally. Our IPO was a pivotal milestone, but we are just getting started and are excited for the next chapter of our journey,” Wolfe Herd, who also co-founded Tinder, added.

Startup Savant reported last month that Bumble managed to raise $2.15 billion from its IPO at a business valuation of $8.2 billion. A day before its IPO, the company raised pricing to $43 per share, which is higher than the range of $37 to $39 announced earlier. This was the second upgrade as the original IPO pricing was set at $28 to $30 per share.

For the first nine months of 2020, the dating business reported it serves 42 million monthly active users (MAUs) at the end of Q3. In this time period, the company recorded revenues of $416.6 million.

Summary

Bumble, which operates a namesake app in the US, UK, Australia, and Canada, posted better-than-expected Q4 results to send the company’s shares around 8.5% higher today.

About the Author


Headshot of Mariliana Fotopoulou

Mariliana has an MSC in Consumer Analytics and Business Strategy. She has a special interest in fast-moving industries and Big Data.

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