Bloomberg
Bumble gives optimistic outlook, signaling return to social life
(Bloomberg) – Bumble Inc., owner of the dating app where women take the first step, gave a first quarter revenue outlook that slightly exceeded analysts’ estimates, reflecting optimism that a declining coronavirus will encourage people to increase your social life and want to make new friends or partners. The Austin-based company is forecasting revenues of $ 163 million to $ 165 million for the current period. Wall Street predicted $ 163 million, according to data compiled by Bloomberg. For the entire year, Bumble expects sales of $ 716 million to $ 726 million, also above expectations. This is Bumble’s first earnings release after its initial $ 2.15 billion public offering last month. Launched in 2014, Bumble gained market share in the United States, traditionally dominated by Match Group, owner of Tinder. “Match is certainly Goliath in space, but Bumble is a viable number two,” said Bloomberg Intelligence analyst Matt Martino, before the results were released. In the fourth quarter, revenue grew 31% to $ 165.6 million, exceeding analysts’ average estimate of $ 163.3 million. Total paying users increased 32% to 2.7 million, with an average revenue per user of $ 20.02, virtually unchanged compared to last year. The company recorded a net loss of $ 26.1 million, compared with a gain of $ 17.2 million the previous year. The loss per share was 1 cent. “Our significant increase in revenue and paying users is a direct result of our team’s remarkable dedication and agility during a challenging pandemic,” said CEO Whitney Wolfe Herd, who, at 31, was the youngest woman going to go public of a large company in the United States as CEO. “Our IPO was a key milestone, but we are just getting started and excited for the next chapter of our journey.” International expansion will be important for Bumble’s long-term prospects, said BMO Harris analyst Daniel Salmon. Currently, the company’s two applications, Bumble and Badoo, are segmented by geography; The main user base for Bumble is in North America and Badoo is focused on Europe. Revenue grew 47% on the Bumble app in the fourth quarter, far exceeding the 10.5% pace on Badoo.Bumble. The women-centered approach has led to a special force with users. The Bumble app has an approximately 30% higher proportion of women compared to the rest of the North American market, according to company records. The company’s non-dating services, Bumble BFF and Bumble Bizz, offer opportunities for growth, although they are not. t currently monetized, said Martino. “These resources are very incipient. But they are interesting nonetheless. And it can help with time spent on the app and getting involved with Bumble. ”Bumble’s shares have risen 46% since its IPO, valuing the company at $ 11.6 billion. They gained about 5% after the results were announced, after closing at $ 62.91 on Wednesday in New York. For more articles like this, visit us at bloomberg.comSubscribe now to stay on top of the most trusted business news source. © 2021 Bloomberg LP