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Bumble Inc Earnings - Analysis & Highlights for Q4 2024
Overview
PositivesNegativesOutlook
- Total Bumble Inc. revenue increased by 2% to $1.072 billion in 2024, in line with the high end of the outlook.
- The company has increased its focus on organic marketing strategies to drive more of its targeted customers into the Bumble App.
- The company has reshaped its workforce and put in place a high performance culture.
- The company has achieved solid progress on its product roadmap and a leaner, more agile team.
- Bumble App revenue was $212 million, down 4% YoY.
- Badoo App and other ARPPU declined by 12% to $11.13.
- Bumble App paying users grew by 5% YoY to $2.8 million, but the increase in payers was offset by an 8% decline in ARPPU to $25.17, primarily driven by geographic mix shift.
- Bumble App revenue is expected to decline between 3% and 5% in Q1, excluding FX and the impact of the loss of one day due to last year being a leap year.
- The company expects to guide a sequential decline in paying users in the range of about 100,000 to 120,000.
- The company expects adjusted EBITDA margins to contract as it navigates revenue headwinds and invests in product and technology to reignite usage and engagement.
- The company expects a sequential decline in paying users in the range of about 100,000 to 120,000.
- The company expects Bumble App revenue to be between $198 million and $202 million, representing a decrease between 6% and 8%.
- The company expects total revenue to decline between 4% and 7% on an ex-FX basis for Q1.
- The company expects revenue declining between 3% and 5% for Bumble App, excluding FX and the impact of the loss of one day due to last year being a leap year.
Q&A Highlights from Bumble Inc Earnings Call Q4 2024
- Analyst asked about the broader online dating industry landscape and the opportunities and challenges facing the industry.
- Whitney Wolfe Herd, CEO of Bumble, stated that the demand for love is stronger than ever, and people need to meet each other and want to use technology to find love. However, the industry has leaned on algorithms and product to find love, and people have felt judged, insecure, and rejected. Bumble's focus is on bringing confidence, curiosity, and joy back to the experience while enhancing the building blocks of the technology. The company is committed to making sure that the entire experience delivers relevant matches and the safest, most trusted experience possible.
- Whitney Wolfe Herd, CEO of Bumble, stated that the demand for love is stronger than ever, and people need to meet each other and want to use technology to find love. However, the industry has leaned on algorithms and product to find love, and people have felt judged, insecure, and rejected. Bumble's focus is on bringing confidence, curiosity, and joy back to the experience while enhancing the building blocks of the technology. The company is committed to making sure that the entire experience delivers relevant matches and the safest, most trusted experience possible.
- Analyst asked about the company's CFO search and priorities for the new CFO, as well as Whitney Wolfe Herd's long-term commitment to the company.
- Whitney Wolfe Herd stated that the CFO hire is a top priority, and the company is actively interviewing candidates. The new CFO will be someone who suits the needs of the business in the current environment and for the company's goals in the future. Whitney also confirmed her long-term commitment to the company, stating that she is in this to win this and bring love back to the category, with no expiration date on her commitment.
- Whitney Wolfe Herd stated that the CFO hire is a top priority, and the company is actively interviewing candidates. The new CFO will be someone who suits the needs of the business in the current environment and for the company's goals in the future. Whitney also confirmed her long-term commitment to the company, stating that she is in this to win this and bring love back to the category, with no expiration date on her commitment.
- Analyst asked about the Discover tab feature and its impact on the company's plans for monetizing young users.
- The Discover tab is a new feature that aims to help users discover one another through shared interests. It's focused on providing relevant experiences for customers and re-energizing the top of the funnel for younger users. The company has seen positive engagement with the feature and is confident that it will drive longer-term revenue reacceleration.
- The Discover tab is a new feature that aims to help users discover one another through shared interests. It's focused on providing relevant experiences for customers and re-energizing the top of the funnel for younger users. The company has seen positive engagement with the feature and is confident that it will drive longer-term revenue reacceleration.
- Analyst asked about the impact of young people taking longer to enter the dating market on the company's plans for monetizing users.
- The company is aiming to be deliberate in its approach and is focused on providing relevant experiences and safety for users, especially younger users. They have seen positive results from their research and testing, and are confident that they are on the right path.
- The company is aiming to be deliberate in its approach and is focused on providing relevant experiences and safety for users, especially younger users. They have seen positive results from their research and testing, and are confident that they are on the right path.
- Analyst asked about the contraction in adjusted EBITDA margins for 2025 and how it will impact the company's investment strategy.
- The company expects adjusted EBITDA margins to contract for 2025 due to revenue headwinds and deliberate investments in product and technology to reignite usage and engagement. The company is investing in both people resources and platform resources to accelerate the work they are doing, including their product vision, safety initiatives, and ecosystem development. The company will continue to be disciplined in all other areas of spend, including marketing, and will return to expanding margins as revenue growth resumes.
- The company expects adjusted EBITDA margins to contract for 2025 due to revenue headwinds and deliberate investments in product and technology to reignite usage and engagement. The company is investing in both people resources and platform resources to accelerate the work they are doing, including their product vision, safety initiatives, and ecosystem development. The company will continue to be disciplined in all other areas of spend, including marketing, and will return to expanding margins as revenue growth resumes.
- Analyst asked about changes in the company's strategy and the context of executive level changes over the past year.
- The company's strategy remains focused on being a customer-first company, solving customer pain points, and delivering the most value, confident, curious, joyful experience to members. The company has upped the talent at the company with experienced and passionate hires, and will continue to add strategic hires in the future. The company is excited about the opportunity ahead and looks forward to sharing more progress next quarter.
- The company's strategy remains focused on being a customer-first company, solving customer pain points, and delivering the most value, confident, curious, joyful experience to members. The company has upped the talent at the company with experienced and passionate hires, and will continue to add strategic hires in the future. The company is excited about the opportunity ahead and looks forward to sharing more progress next quarter.
- Analyst asked about the path from engagement to monetization and how the company is thinking about it.
- The company is focused on strengthening the foundation of its ecosystem and innovation, which includes improving engagement. In parallel, the company is working on its revenue strategy, ensuring a thoughtful balance of revenue across subscription tiers, with a focus on providing a great free experience and driving conversions at the right moment. The company is testing different frameworks for rebalancing revenue, and is excited about the value Whitney will bring to the platform.
- The company is focused on strengthening the foundation of its ecosystem and innovation, which includes improving engagement. In parallel, the company is working on its revenue strategy, ensuring a thoughtful balance of revenue across subscription tiers, with a focus on providing a great free experience and driving conversions at the right moment. The company is testing different frameworks for rebalancing revenue, and is excited about the value Whitney will bring to the platform.
- Analyst asked about the puts and takes on the 1Q Bumble App guidance in terms of payer conversion and the impact of new safety features.
- The company is guiding for a revenue decline of 3-5% for Bumble App, excluding FX and the impact of the loss of one day due to last year being a leap year. The company is also guiding for a sequential decline in paying users of 100,000 to 120,000, which encompasses the work the company is doing around strengthening its ecosystem, including safety and marketing efforts. The company is focused on getting the top of the funnel back to growth, and is seeing green shoots in third-party data numbers between Q4 and Q1.
- The company is guiding for a revenue decline of 3-5% for Bumble App, excluding FX and the impact of the loss of one day due to last year being a leap year. The company is also guiding for a sequential decline in paying users of 100,000 to 120,000, which encompasses the work the company is doing around strengthening its ecosystem, including safety and marketing efforts. The company is focused on getting the top of the funnel back to growth, and is seeing green shoots in third-party data numbers between Q4 and Q1.
- Analyst asked about the recent reset or change in approach to online dating, specifically regarding the Gen Z audience.
- Whitney Wolfe Herd, the CEO of Bumble, explained that the company is undergoing a reset to enhance consumer surplus and improve the user value proposition. She believes that this reset is not a generational shift but rather a moment to pause and reassess the company's approach to online dating. The reset is aimed at ensuring that Bumble provides the best possible experience for its users, including addressing any struggles they may be facing.
- Whitney Wolfe Herd, the CEO of Bumble, explained that the company is undergoing a reset to enhance consumer surplus and improve the user value proposition. She believes that this reset is not a generational shift but rather a moment to pause and reassess the company's approach to online dating. The reset is aimed at ensuring that Bumble provides the best possible experience for its users, including addressing any struggles they may be facing.
- Analyst asked about Bumble's plans for products beyond dating, specifically regarding the adoption of Bumble BFF and learnings from Geneva.
- Lidiane Jones, the COO of Bumble, explained that Bumble is excited about continuing to focus on reimagining dating, with a focus on its core businesses of Bumble and Badoo. However, the company is also exploring opportunities for BFF and Geneva, which are dedicated to community and friendship. Whitney Wolfe Herd, the founder and originator of BFF, is passionate about this product and will carry the torch moving forward.
- Lidiane Jones, the COO of Bumble, explained that Bumble is excited about continuing to focus on reimagining dating, with a focus on its core businesses of Bumble and Badoo. However, the company is also exploring opportunities for BFF and Geneva, which are dedicated to community and friendship. Whitney Wolfe Herd, the founder and originator of BFF, is passionate about this product and will carry the torch moving forward.
