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Tuesday, December 6, 2022

Bumble Q2 Revenues Top Estimates; Raises Outlook

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Dating company Bumble Inc. (BMBL) reported better-than-expected results for the second quarter ended June 30, 2021. The strong results were mainly driven by growth in revenues.

Following the earnings, shares of the company appreciated marginally to close at $47.70 in extended trade on Wednesday.

Bumble reported quarterly revenues of $186.2 million, up 38% year-over-year, surpassing analysts estimates of $177.51 million. The rise in revenues can be primarily attributed to 55% year-over-year growth witnessed in Bumble App revenue, which stood at $127.3 million.

The company reported a loss of $0.06 per share in the second quarter.

In key operating metrics, its active users increased 20% from 2.4 million to 2.9 million. The total average revenue per paying user (ARPPU) rose from $18.12 to $20.88.

For the third quarter, the company expects revenue to be in the range of $195 million to $198 million versus the consensus of $190.46 million. The company anticipates its adjusted EBITDA in the third quarter to be in the range of $48 million to $50 million.

For 2021, the company expects revenue to be in the range of $752 million to $762 million, while the consensus for the same is pegged at $733 million. It anticipates adjusted EBITDA to be between $195 million and $200 million.

The CFO of Bumble, Anu Subramanian, said, “Our business delivered outstanding revenue growth in the second quarter, as we increased our user base and provided our members with innovative products that led to increases in paying users and ARPPU. We are encouraged by the momentum we are seeing, and are pleased to be increasing our financial outlook for both revenue and Adjusted EBITDA for the year.” (See Bumble stock chart on TipRanks)

On July 13, Loop Capital Markets analyst Laura Champine reiterated a Hold rating on the stock. However, the analyst raised the price target from $45 to $54, which implies 13.3% upside potential from current levels.

The analyst expects a gradual recovery in in-person dating and subsequently an increase in paying users for the company.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 5 Buys and 6 Holds. The average Bumble price target of $60.20 implies that the stock has upside potential of 26.3% from current levels.

Bumble scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have declined about 32.2% over the past year.

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The post Bumble Q2 Revenues Top Estimates; Raises Outlook appeared first on TipRanks Financial Blog.

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