Total Revenue Decreased 1% to $274 Million
Bumble App Revenue Decreased 1% to $220 Million Bumble App Paying
Users Increased 10% to 2.9 Million; Grew 52,000 Quarter Over
Quarter
Bumble Inc. (NASDAQ: BMBL) today reported financial results for
the third quarter ended September 30, 2024.
“We delivered on our financial objectives for the third quarter
as we executed on our plans to reimagine Bumble App to enable the
next generation of online-to-real-world connections,” said Lidiane
Jones, CEO of Bumble Inc. “Our work is focused on strengthening our
ecosystem, rolling out a rebalanced marketing approach to drive
high-quality user growth, achieving a steady cadence of product
releases, and evolving our revenue strategy to better align with
customer value. Our work will take time, but our powerful brand,
scale, technical infrastructure and healthy financial position
provide us with a strong foundation to build toward our
vision.”
Third Quarter 2024 Financial and Operational Highlights:
(All comparisons relative to the Third Quarter 2023)
- Total Revenue decreased 0.7% to $273.6 million, compared to
$275.5 million. This includes an unfavorable impact of $1.3 million
from foreign currency movements year over year.
- Bumble App Revenue decreased 0.7% to $220.2 million, compared
to $221.8 million. This includes an unfavorable impact of $0.9
million from foreign currency movements year over year.
- Badoo App and Other Revenue decreased 0.6% to $53.4 million,
compared to $53.7 million. This includes an unfavorable impact of
$0.4 million from foreign currency movements year over year.
- Total Paying Users increased to 4.3 million, compared to 3.8
million.
- Total Average Revenue per Paying User ("ARPPU") decreased to
$21.17, compared to $23.42.
- Net loss was $849.3 million, which includes $892.2 million of
non-cash impairment charges, compared to net earnings of $23.1
million, or 8.4% of revenue.
- Adjusted EBITDA was $82.6 million, or 30.2% of revenue,
compared to $75.3 million, or 27.3% of revenue.
Information about Bumble's use of non-GAAP financial measures is
provided below under “Non-GAAP Financial Measures.”
“We reported total revenue and Bumble App revenue within our Q3
outlook ranges, while our team’s strong operational focus led to
Adjusted EBITDA that exceeded our outlook,” said Anu Subramanian,
CFO of Bumble Inc. “Operating with discipline and generating solid
cash flow enabled us to continue to return cash to our
shareholders, while allowing us to invest in key initiatives to
drive our long-term growth plans for our business.”
Key Operating Metrics:
The following metrics were calculated excluding paying users and
revenue generated from Official, advertising and partnerships or
affiliates and, for periods prior to the fourth quarter of 2023,
excluding paying users and revenue generated from Fruitz. Beginning
in the fourth quarter of 2023, paying users and revenue generated
from Fruitz are included in our key operating metrics. Prior period
information and key operating metrics have not been recast to
include paying users and revenue generated from Fruitz. Geneva is a
non-revenue generating app as of September 30, 2024 and excluded
from our key operating metrics. Please refer to the Definitions
section for more information.
(In thousands, except ARPPU)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Bumble App Paying Users
2,869.3
2,604.9
Badoo App and Other Paying Users
1,386.2
1,215.6
Total Paying Users
4,255.5
3,820.5
Bumble App Average Revenue per Paying
User
$
25.58
$
28.38
Badoo App and Other Average Revenue per
Paying User
$
12.03
$
12.79
Total Average Revenue per Paying User
$
21.17
$
23.42
Balance Sheet:
As of September 30, 2024, total cash and cash equivalents were
$252.1 million and total debt was $618.0 million.
The Company concluded that it was necessary to perform an
interim impairment test as of September 30, 2024, primarily as a
result of a sustained decline in the Company's stock price and
market capitalization. Based on the results of the test, we
recognized non-cash impairment charges of $892.2 million during the
three months ended September 30, 2024.
Share Repurchase Program:
During the third quarter of 2024, the Company repurchased $89.7
million of shares of Class A common stock under our previously
announced $450.0 million share repurchase program.
In October 2024, the Company repurchased $30.0 million of shares
of Class A common stock.
As of October 31, 2024, a total of $89.0 million remained
available for repurchase under the program, subject to an
approximately 3.1 million share repurchase limit which may be
increased pursuant to authorization from the Company’s Board of
Directors.
Financial Outlook:
A reconciliation of Adjusted EBITDA to GAAP net earnings (loss)
and Adjusted EBITDA margin growth to GAAP net earnings (loss)
margin growth which is growth in GAAP net earnings (loss) as a
percentage of revenue has not been provided for the outlook
included herein as the quantification of certain items included in
the calculation of GAAP net earnings (loss) cannot be calculated or
predicted at this time without unreasonable efforts. For example,
the non-GAAP adjustment for stock-based compensation expense
requires additional inputs such as number of shares granted and
market price that are not currently ascertainable, and the non-GAAP
adjustment for certain legal, tax and regulatory reserves and
expenses depends on the timing and magnitude of these expenses and
cannot be accurately forecasted. For the same reasons, the Company
is unable to address the probable significance of the unavailable
information, which could have a potentially unpredictable, and
potentially significant, impact on its future GAAP financial
results.
Bumble anticipates the following for the fourth quarter ending
December 31, 2024 and full year ending December 31, 2024:
Fourth Quarter 2024:
- Total Revenue in the range of $256 million to $262 million,
which includes:
- Bumble App Revenue of $207 million to $211 million.
- Adjusted EBITDA of $70 million to $73 million.
Full Year 2024:
- Total Revenue in the range of $1,066 million to $1,072 million,
which includes:
- Bumble App Revenue of $861 million to $865 million.
- Adjusted EBITDA margin growth of at least 200 basis
points.
Actual results may differ materially from Bumble’s financial
outlook as a result of, among other things, the factors described
under “Forward-Looking Statements” below.
Conference Call and Webcast Information
Bumble will host a live webcast of its conference call to
discuss its third quarter 2024 financial results at 4:30 p.m.
Eastern Time today, November 6, 2024. A webcast of the call and
other information related to the call will be accessible on the
Investors section of the Company’s website at
https://ir.bumble.com. A webcast replay will be available
approximately two hours after the conclusion of the live event.
Definitions
As used in this press release, unless otherwise noted or the
context requires otherwise, the following terms have the following
meanings. Our key metrics (Bumble App Paying Users, Badoo App and
Other Paying Users, Total Paying Users, Bumble App Average Revenue
per Paying User, Badoo App and Other Average Revenue per Paying
User, and Total Average Revenue per Paying User) were calculated
excluding paying users and revenue generated from Official,
advertising and partnerships or affiliates and, for periods prior
to the fourth quarter of 2023, excluding paying users and revenue
generated from Fruitz. Beginning in the fourth quarter of 2023,
paying users and revenue generated from Fruitz are included in our
key operating metrics. Geneva is a non-revenue generating app as of
September 30, 2024 and excluded from our key operating metrics.
Total Revenue is the sum of Bumble App Revenue and Badoo App and
Other Revenue.
Total Paying Users is the sum of Bumble App Paying Users and
Badoo App and Other Paying Users.
Total Average Revenue per Paying User or Total ARPPU is a metric
calculated based on Total Revenue in any measurement period divided
by the Total Paying Users in such period divided by the number of
months in the period.
Bumble App Revenue is revenue derived from purchases or renewals
of a Bumble app or Bumble For Friends app subscription plan and/or
in-app purchases on Bumble app or Bumble For Friends app in the
relevant period.
Bumble App Paying User is a user that has purchased or renewed a
Bumble app or Bumble For Friends app subscription plan and/or made
an in-app purchase on Bumble app or Bumble For Friends app in a
given month. We calculate Bumble App Paying Users as a monthly
average, by counting the number of Bumble App Paying Users in each
month and then dividing by the number of months in the relevant
measurement period.
Bumble App Average Revenue per Paying User or Bumble App ARPPU
is a metric calculated based on Bumble App Revenue in any
measurement period, divided by Bumble App Paying Users in such
period divided by the number of months in the period.
Badoo App and Other Revenue is revenue derived from purchases or
renewals of a Badoo app subscription plan and/or in-app purchases
on Badoo app in the relevant period, purchases on one of our other
apps that we owned and operated in the relevant period, purchases
on other third party apps that used our technology in the relevant
period and advertising, partnerships or affiliates revenue in the
relevant period.
Badoo App and Other Paying User is a user that has purchased or
renewed a subscription plan and/or made an in-app purchase on Badoo
app in a given month or made a purchase on one of our other apps
that we owned and operated in a given month, or made a purchase on
other third-party apps that used our technology in the relevant
period. We calculate Badoo App and Other Paying Users as a monthly
average, by counting the number of Badoo App and Other Paying Users
in each month and then dividing by the number of months in the
relevant measurement period.
Badoo App and Other Average Revenue per Paying User or Badoo App
and Other ARPPU is a metric calculated based on Badoo App and Other
Revenue in any measurement period divided by Badoo App and Other
Paying Users in such period divided by the number of months in the
period.
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP,
however, management believes that certain non-GAAP financial
measures provide users of our financial information with useful
supplemental information that enables a better comparison of our
performance across periods. We believe Adjusted EBITDA provides
visibility to the underlying continuing operating performance by
excluding the impact of certain expenses, including income tax
(benefit) provision, interest (income) expense, net, depreciation
and amortization expense, stock-based compensation expenses,
employer costs related to stock-based compensation, foreign
exchange (gain) loss, changes in fair value of contingent earn-out
liability, interest rate swaps and investments in equity
securities, transaction and other costs, litigation costs net of
insurance reimbursements that arise outside of the ordinary course
of business, tax receivable agreement liability remeasurement
(benefit) expense, impairment loss, and costs associated with our
restructuring plan, as management does not believe these expenses
are representative of our core earnings. We also provide Adjusted
EBITDA margin, which is calculated as Adjusted EBITDA divided by
revenue. In addition to Adjusted EBITDA and Adjusted EBITDA margin,
we believe free cash flow and free cash flow conversion provide
useful information regarding how cash provided by (used in)
operating activities compares to the capital expenditures required
to maintain and grow our business, and our available liquidity,
after funding such capital expenditures, to service our debt, fund
strategic initiatives, effectuate discretionary share repurchases
and strengthen our balance sheet, as well as our ability to convert
our earnings to cash. Additionally, we believe such metrics are
widely used by investors, securities analysis, ratings agencies and
other parties in evaluating liquidity and debt-service
capabilities. We calculate free cash flow and free cash flow
conversion using methodologies that we believe can provide useful
supplemental information to help investors better understand
underlying trends in our business.
Our non-GAAP financial measures may not be comparable to
similarly titled measures used by other companies, have limitations
as analytical tools and should not be considered in isolation, or
as substitutes for analysis of our operating results as reported
under GAAP. Additionally, we do not consider our non-GAAP financial
measures as superior to, or a substitute for, the equivalent
measures calculated and presented in accordance with GAAP.
Adjusted earnings before interest, taxes, depreciation and
amortization (“Adjusted EBITDA”) is defined as net earnings (loss)
excluding income tax (benefit) provision, interest (income)
expense, net, depreciation and amortization expense, stock-based
compensation expense, employer costs related to stock-based
compensation, foreign exchange (gain) loss, changes in fair value
of contingent earn-out liability, interest rate swaps and
investments in equity securities, transaction and other costs,
litigation costs net of insurance reimbursements that arise outside
of the ordinary course of business, tax receivable agreement
liability remeasurement (benefit) expense, impairment loss, and
restructuring costs.
Adjusted EBITDA margin represents Adjusted EBITDA as a
percentage of revenue.
Free cash flow is defined as net cash provided by (used in)
operating activities less capital expenditures.
Free cash flow conversion represents free cash flow as a
percentage of Adjusted EBITDA.
Operating cash flow conversion represents net cash provided by
(used in) operating activities as a percentage of net earnings
(loss).
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, without limitation,
statements reflecting the current views of management of Bumble
Inc. with respect to, among other things, our operations, our
financial performance, our industry and our business and other
non-historical statements, including without limitation statements
related to our strategic plans and initiatives (including our
marketing approach, product releases and revenue strategy) and the
statements in the “Financial Outlook” section of this press
release. In some cases, you can identify these forward-looking
statements by the use of words such as “outlook,” “believe(s),”
“expect(s),” “potential,” “continue(s),” “may,” “will,” “should,”
“could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,”
“plan(s),” “estimate(s),” “anticipates,” “projection,” “will likely
result” and or the negative version of these words or other
comparable words of a future or forward-looking nature. Such
forward-looking statements are subject to various risks and
uncertainties. Accordingly, there are or will be important factors
that could cause actual outcomes or results to differ materially
from those indicated in these statements. These factors include,
but are not limited to, the following:
- our ability to retain existing users or attract new users and
to convert users to paying users (including as a result of shifts
in strategy)
- competition and changes in the competitive landscape of our
market
- our ability to distribute our dating products through third
parties, such as Apple App Store or Google Play Store, and offset
related fees
- our ability to maintain the value and reputation of our
brands
- risks relating to changes to our existing brands and products,
or the introduction or acquisition of new brands or products
- risks relating to certain of our international operations,
including geopolitical conditions and successful expansion into new
markets
- the impact of data security breaches or cyber attacks on our
systems and the costs of remediation related to any such
incidents
- challenges with properly managing the use of artificial
intelligence
- our ability to obtain, maintain, protect and enforce
intellectual property rights and successfully defend against claims
of infringement, misappropriation or other violations of
third-party intellectual property
- our ability to comply with complex and evolving U.S. and
international laws and regulations relating to our business,
including data privacy laws
- our substantial indebtedness
- affiliates of Blackstone Inc.’s (“Blackstone”) and our
Founder’s control of us
- the outsized voting rights of Blackstone and our Founder
- the risk that we may experience impairments to our goodwill and
intangible assets as a result of a number of factors, some of which
are beyond our control
- the risk that our recent global workforce reduction and
restructuring of our operations may not generate their intended
benefits to the extent or as quickly as anticipated
- our ability to attract, hire and retain a highly qualified and
diverse workforce, or maintain our corporate culture
- changes in business or macroeconomic conditions, including the
impact of lower consumer confidence in our business or in the
online dating industry generally, recessionary conditions,
increased unemployment rates, stagnant or declining wages, changes
in inflation or interest rates, geopolitical events, political
unrest (which may be heightened in a U.S. presidential election
year), armed conflicts, including conflicts in Eastern Europe and
the Middle East, widespread health emergencies or pandemics and
measures taken in response, extreme weather events or natural
disasters
- foreign currency exchange rate fluctuations
For additional information on these and other factors that could
cause Bumble’s actual results to differ materially from expected
results, please see our Annual Report on Form 10-K for the year
ended December 31, 2023, which was filed with the Securities and
Exchange Commission (the “SEC”) on February 28, 2024, as such
factors may be updated from time to time in our subsequent periodic
filings, which are accessible on the SEC’s website at www.sec.gov.
The forward-looking statements included in this press release are
made only as of the date of this press release, and we undertake no
obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as required by law.
About Bumble
Bumble Inc. is the parent company of Bumble, Bumble For Friends,
Badoo, Fruitz and Official. The Bumble platform enables people to
build healthy and equitable relationships, through Kind
Connections. Founded by Whitney Wolfe Herd in 2014, Bumble was one
of the first dating apps built with women at the center and
connects people across dating (Date mode), friendship (BFF Mode)
and professional networking (Bizz mode). Bumble For Friends app is
a friendship app where people in all stages of life can meet people
nearby and create meaningful platonic connections. Badoo, which was
founded in 2006, was one of the pioneers of web and mobile
free-to-use dating products. Fruitz, founded in 2017, encourages
honesty and transparency by sharing dating intentions from the
first touch point. Official, founded in 2020, is an app that is
intended to help couples build healthy and lasting habits in their
romantic relationships.
Bumble Inc.
Condensed Consolidated Balance
Sheets
(In thousands, except share
and per share information)
(Unaudited)
September 30, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
252,057
$
355,642
Accounts receivable (net of allowance of
$624 and $648, respectively)
102,547
102,677
Other current assets
28,725
34,732
Total current assets
383,329
493,051
Right-of-use assets
13,303
15,425
Property and equipment (net of accumulated
depreciation of $21,463 and $15,831, respectively)
8,974
12,462
Goodwill
1,389,002
1,585,750
Intangible assets, net
764,406
1,484,290
Deferred tax assets, net
22,558
27,029
Other noncurrent assets
7,840
7,120
Total assets
$
2,589,412
$
3,625,127
LIABILITIES AND SHAREHOLDERS’
EQUITY
Accounts payable
$
6,830
$
4,611
Deferred revenue
45,329
48,749
Accrued expenses and other current
liabilities
125,083
185,799
Current portion of long-term debt, net
5,750
5,750
Total current liabilities
182,992
244,909
Long-term debt, net
612,231
615,176
Deferred tax liabilities, net
975
5,673
Payable to related parties pursuant to a
tax receivable agreement
412,958
407,389
Other long-term liabilities
13,393
14,707
Total liabilities
1,222,549
1,287,854
Commitments and contingencies
Shareholders’ Equity:
Class A common stock (par value $0.01 per
share, 6,000,000,000 shares authorized; 139,851,829 shares issued
and 112,557,526 shares outstanding as of September 30, 2024;
138,520,102 shares issued and 130,687,629 shares outstanding as of
December 31, 2023)
1,398
1,385
Class B common stock (par value $0.01 per
share, 1,000,000 shares authorized; 20 shares issued and
outstanding as of September 30, 2024 and December 31, 2023,
respectively)
—
—
Preferred stock (par value $0.01;
authorized 600,000,000 shares; no shares issued and outstanding as
of September 30, 2024 and December 31, 2023, respectively)
—
—
Additional paid-in capital
1,749,314
1,772,449
Treasury stock (27,294,303 and 7,832,473
shares as of September 30, 2024 and December 31, 2023,
respectively)
(266,045
)
(73,764
)
Accumulated deficit
(705,271
)
(144,084
)
Accumulated other comprehensive income
73,166
79,029
Total Bumble Inc. shareholders’
equity
852,562
1,635,015
Noncontrolling interests
514,301
702,258
Total shareholders’ equity
1,366,863
2,337,273
Total liabilities and shareholders’
equity
$
2,589,412
$
3,625,127
Bumble Inc.
Condensed Consolidated
Statements of Operations
(In thousands, except per
share information)
(Unaudited)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Revenue
$
273,605
$
275,510
$
809,995
$
778,193
Operating costs and expenses:
Cost of revenue
79,552
80,049
240,882
227,366
Selling and marketing expense
63,549
68,848
194,728
197,767
General and administrative expense
33,251
48,577
90,436
141,706
Product development expense
24,880
30,909
76,602
100,294
Depreciation and amortization expense
18,312
17,127
52,542
50,825
Impairment loss
892,248
—
892,248
—
Total operating costs and
expenses
1,111,792
245,510
1,547,438
717,958
Operating earnings (loss)
(838,187
)
30,000
(737,443
)
60,235
Interest expense, net
(9,809
)
(5,256
)
(27,809
)
(16,585
)
Other income (expense), net
2,898
252
3,815
(6,278
)
Income (loss) before income
taxes
(845,098
)
24,996
(761,437
)
37,372
Income tax provision
(4,161
)
(1,872
)
(16,263
)
(7,228
)
Net earnings (loss)
(849,259
)
23,124
(777,700
)
30,144
Net earnings (loss) attributable to
noncontrolling interests
(236,060
)
6,453
(216,513
)
8,331
Net earnings (loss) attributable to Bumble
Inc. shareholders
$
(613,199
)
$
16,671
$
(561,187
)
$
21,813
Net earnings (loss) per share
attributable to Bumble Inc. shareholders
Basic earnings (loss) per share
$
(5.11
)
$
0.12
$
(4.53
)
$
0.16
Diluted earnings (loss) per share
$
(5.11
)
$
0.12
$
(4.53
)
$
0.16
Bumble Inc.
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Cash flows from operating
activities:
Net earnings (loss)
$
(849,259
)
$
23,124
$
(777,700
)
$
30,144
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Impairment loss
892,248
—
892,248
—
Depreciation and amortization expense
18,312
17,127
52,542
50,825
Changes in fair value of interest rate
swaps
8,687
3,796
6,995
9,029
Changes in fair value of contingent
earn-out liability
(2,689
)
(11,308
)
(22,032
)
(24,241
)
Non-cash lease expense
815
893
2,598
2,640
Tax receivable agreement liability
remeasurement expense
721
—
951
—
Deferred income tax
(1,172
)
(3,364
)
314
(8,880
)
Stock-based compensation expense
10,158
21,528
12,273
83,660
Net foreign exchange difference
7,357
(2,973
)
8,015
(3,300
)
Other, net
(13,196
)
(21,460
)
(15,655
)
1,240
Changes in assets and liabilities:
Accounts receivable
(1,400
)
(1,778
)
1,262
(32,759
)
Other current assets
2,286
472
(1,659
)
(1,784
)
Accounts payable
1,098
(2,770
)
2,258
2,464
Deferred revenue
(1,373
)
1,195
(3,420
)
3,149
Legal liabilities
(816
)
19,725
(26,044
)
1,475
Lease liabilities
(276
)
(1,009
)
(1,028
)
(2,991
)
Accrued expenses and other current
liabilities
21,345
18,993
(3,652
)
7,664
Other, net
648
378
573
334
Net cash provided by operating
activities
93,494
62,569
128,839
118,669
Cash flows from investing
activities:
Capital expenditures
(1,619
)
(3,559
)
(6,150
)
(12,769
)
Acquisition of business, net of cash
acquired
—
57
—
(9,820
)
Acquisition of intangible assets
(17,435
)
—
(17,435
)
—
Net cash used in investing
activities
(19,054
)
(3,502
)
(23,585
)
(22,589
)
Cash flows from financing
activities:
Repayment of term loan
(1,438
)
(1,438
)
(4,313
)
(4,313
)
Distributions paid to noncontrolling
interest holders
(2,259
)
(46
)
(7,877
)
(19,287
)
Share repurchases
(89,735
)
—
(151,843
)
(20,890
)
Purchase of Common Units
(29
)
—
(22,184
)
—
Withholding tax paid on behalf of
employees on stock-based awards
(1,343
)
(2,171
)
(9,590
)
(13,865
)
Payments on tax receivable agreement
(11,942
)
—
(11,942
)
—
Net cash used in financing
activities
(106,746
)
(3,655
)
(207,749
)
(58,355
)
Effects of exchange rate changes on cash
and cash equivalents
(2,660
)
2,419
(1,443
)
(2,117
)
Net increase (decrease) in cash and
cash equivalents and restricted cash
(34,966
)
57,831
(103,938
)
35,608
Cash and cash equivalents and restricted
cash, beginning of the period
290,230
384,819
359,202
407,042
Cash and cash equivalents and
restricted cash, end of the period
255,264
442,650
255,264
442,650
Less restricted cash
(3,207
)
(3,466
)
(3,207
)
(3,466
)
Cash and cash equivalents, end of the
period
$
252,057
$
439,184
$
252,057
$
439,184
Bumble Inc.
Reconciliation of GAAP to
NON-GAAP Financial Measures
(Unaudited)
Reconciliation of Net Earnings
(Loss) to Adjusted EBITDA and Reconciliation of Net Cash Provided
By Operating Activities to Free Cash Flow
(In thousands, except
percentages)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Net earnings (loss)
$
(849,259
)
$
23,124
$
(777,700
)
$
30,144
Add back:
Income tax provision
4,161
1,872
16,263
7,228
Interest expense, net
9,809
5,256
27,809
16,585
Depreciation and amortization expense
18,312
17,127
52,542
50,825
Stock-based compensation expense
10,158
21,528
12,273
83,660
Employer costs related to stock-based
compensation (1)
441
1,003
2,390
4,025
Litigation costs, net of insurance
reimbursements (2)
959
16,323
9,695
24,874
Foreign exchange gain (3)
(12,143
)
(3,905
)
(11,515
)
(2,439
)
Changes in fair value of interest rate
swaps (4)
8,687
3,796
6,995
9,029
Restructuring costs (5)
582
—
20,355
—
Transaction and other costs (6)
583
463
1,297
1,994
Changes in fair value of contingent
earn-out liability
(2,689
)
(11,308
)
(22,032
)
(24,241
)
Changes in fair value of investments in
equity securities
(20
)
2
26
178
Tax receivable agreement liability
remeasurement expense (7)
721
—
951
—
Impairment loss (8)
892,248
—
892,248
—
Adjusted EBITDA
$
82,550
$
75,281
$
231,597
$
201,862
Net earnings (loss) margin
(310.4
)%
8.4
%
(96.0
)%
3.9
%
Adjusted EBITDA margin
30.2
%
27.3
%
28.6
%
25.9
%
Net cash provided by operating
activities
$
93,494
$
62,569
$
128,839
$
118,669
Less:
Capital expenditures
(1,619
)
(3,559
)
(6,150
)
(12,769
)
Free cash flow
$
91,875
$
59,010
$
122,689
$
105,900
Operating cash flow conversion
*
270.6
%
*
393.7
%
Free cash flow conversion
111.3
%
78.4
%
53.0
%
52.5
%
* Not meaningful
(1)
Represents employer portion of
Social Security and Medicare payroll taxes domestically, National
Insurance contributions in the United Kingdom and comparable costs
internationally related to the settlement of equity awards.
(2)
Represents certain litigation
costs, net of insurance proceeds associated with pending
litigations or settlements of litigation that arise outside of the
ordinary course of business.
(3)
Represents foreign exchange gain
due to foreign currency transactions.
(4)
Represents fair value loss on
interest rate swaps.
(5)
Represents costs associated with
the restructuring plan announced in February 2024, such as
severance, benefits and other related costs.
(6)
Represents transaction costs
related to acquisitions and secondary offerings such as legal,
accounting, advisory fees and other related costs.
(7)
Represents recognized adjustments
to the tax receivable agreement liability.
(8)
Represents impairment charges to
indefinite-lived intangible assets, the Fruitz asset group and
goodwill in 2024.
Supplementary Information
(Unaudited)
Stock-Based Compensation
Expense
(In thousands)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Cost of revenue
$
45
$
542
$
364
$
2,800
Selling and marketing expense
490
2,469
(2,328
)
7,191
General and administrative expense
7,781
10,352
14,167
44,029
Product development expense
1,842
8,165
70
29,640
Total stock-based compensation
expense
$
10,158
$
21,528
$
12,273
$
83,660
Reconciliation of GAAP costs and
expenses to non-GAAP costs and expenses by function
(In thousands)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Cost of revenue GAAP
$
79,552
$
80,049
$
240,882
$
227,366
Stock-based compensation expense
(45
)
(542
)
(364
)
(2,800
)
Employer costs related to stock-based
compensation
(19
)
(42
)
(113
)
(197
)
Restructuring costs
35
—
(971
)
—
Transaction and other costs
(279
)
—
(423
)
—
Cost of revenue non-GAAP
$
79,244
$
79,465
$
239,011
$
224,369
(In thousands)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Selling and marketing expense
GAAP
$
63,549
$
68,848
$
194,728
$
197,767
Stock-based compensation expense
(490
)
(2,469
)
2,328
(7,191
)
Employer costs related to stock-based
compensation
(25
)
(72
)
(229
)
(309
)
Restructuring costs
3
—
(3,244
)
—
Selling and marketing expense
non-GAAP
$
63,037
$
66,307
$
193,583
$
190,267
(In thousands)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months
Ended September 30,
2023
General and administrative expense
GAAP
$
33,251
$
48,577
$
90,436
$
141,706
Changes in fair value of contingent
earn-out liability
2,689
11,308
22,032
24,241
Litigation costs, net of insurance
proceeds
(959
)
(16,323
)
(9,695
)
(24,874
)
Stock-based compensation expense
(7,781
)
(10,352
)
(14,167
)
(44,029
)
Employer costs related to stock-based
compensation
(208
)
(193
)
(819
)
(1,239
)
Restructuring costs
(22
)
—
(6,094
)
—
Transaction and other costs
44
(463
)
(526
)
(1,994
)
General and administrative expense
non-GAAP
$
27,014
$
32,554
$
81,167
$
93,811
(In thousands)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended
September 30, 2023
Product development expense
GAAP
$
24,880
$
30,909
$
76,602
$
100,294
Stock-based compensation expense
(1,842
)
(8,165
)
(70
)
(29,640
)
Employer costs related to stock-based
compensation
(189
)
(696
)
(1,229
)
(2,280
)
Restructuring costs
(598
)
—
(10,046
)
—
Transaction and other costs
(348
)
—
(348
)
—
Product development expense
non-GAAP
$
21,903
$
22,048
$
64,909
$
68,374
(In thousands)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Total operating costs and expenses
GAAP
$
1,111,792
$
245,510
$
1,547,438
$
717,958
Impairment loss
(892,248
)
—
(892,248
)
—
Depreciation and amortization expense
(18,312
)
(17,127
)
(52,542
)
(50,825
)
Changes in fair value of contingent
earn-out liability
2,689
11,308
22,032
24,241
Litigation costs, net of insurance
proceeds
(959
)
(16,323
)
(9,695
)
(24,874
)
Stock-based compensation expense
(10,158
)
(21,528
)
(12,273
)
(83,660
)
Employer costs related to stock-based
compensation
(441
)
(1,003
)
(2,390
)
(4,026
)
Restructuring costs
(582
)
—
(20,355
)
—
Transaction and other costs
(583
)
(463
)
(1,297
)
(1,994
)
Total operating costs and expenses
non-GAAP
$
191,198
$
200,374
$
578,670
$
576,820
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version on businesswire.com: https://www.businesswire.com/news/home/20241106020307/en/
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