• Total Revenue: $262 million for Q4, at the high end of the outlook.
• Bumble App Revenue: $212 million, above the high end of the outlook, down 4% year-over-year.
• Total Paying Users: Grew 5% to 4.2 million in Q4.
• ARPPU (Average Revenue Per Paying User): Declined 9% to $20.58.
• Adjusted EBITDA: $73 million for Q4, representing 28% margins.
• Free Cash Flow: $114 million for the year 2024.
• Cash and Cash Equivalents: $204 million at year-end 2024.
• Share Repurchase: $40 million worth of shares repurchased in Q4; $214 million for the full year 2024.
• Q1 2025 Revenue Outlook: Expected between $242 million and $248 million, a decrease of 7% to 10%.
• Q1 2025 Adjusted EBITDA Outlook: Estimated between $60 million and $63 million, representing a margin of 25% at the midpoint.

• Warning! GuruFocus has detected 2 Warning Sign with BMBL.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bumble Inc (NASDAQ:BMBL) reported total revenue and adjusted EBITDA at the high end of their respective ranges for Q4 2024.
• The Bumble App revenue outperformed guidance, indicating strong performance in their core product.
• The company generated free cash flow of $114 million for the year, showcasing strong financial discipline.
• Bumble Inc (NASDAQ:BMBL) has made significant progress on its product roadmap, focusing on innovation and customer experience.
• The introduction of new features like the Discover tab and AI-powered tools aims to enhance user engagement and safety.

Negative Points

• Bumble Inc (NASDAQ:BMBL) reported a decline in ARPPU by 9% to $20.58, indicating challenges in monetization.
• The company expects a sequential decline in paying users in Q1 2025, due to ongoing ecosystem health initiatives.
• Badoo App and other revenue declined by 7%, reflecting challenges in diversifying revenue streams.
• The decision to sunset Fruitz and Official indicates a need to refocus resources, which may impact short-term growth.
• Bumble Inc (NASDAQ:BMBL) anticipates adjusted EBITDA margins to contract in 2025 due to revenue headwinds and investments in product and technology.

Q & A Highlights

Q: Whitney, as you return to Bumble in an operating role, what is your perspective on the online dating industry landscape in 2025, and what are the opportunities and challenges? A: Whitney Wolfe Herd, Founder and Executive Chair, emphasized the strong demand for love and connection, noting that while technology has made finding love easier, it has also led to feelings of judgment and insecurity. She aims to bring confidence and joy back to the dating experience by focusing on relevant matches and safe interactions, leveraging her extensive experience in the industry.

Q: Could you provide an update on the CFO search and your priorities for a new CFO? A: Whitney Wolfe Herd stated that the CFO hire is a top priority, and they are actively interviewing candidates. The focus is on finding a leader who suits the current business environment and future goals. She also affirmed her long-term commitment to Bumble, expressing her passion and dedication to the company's mission.

Q: Can you expand on the Discover tab feature and its impact on user engagement? A: Lidiane Jones, CEO, explained that the Discover tab, part of the winter release, helps users find matches through shared interests, enhancing customer experience and engagement. Early testing shows increased user engagement and more matches, supporting Bumble's strategy to drive long-term revenue growth.

Q: How does Bumble plan to address the trend of younger users being hesitant to enter the dating market? A: Lidiane Jones highlighted the importance of providing relevant matches and ensuring safety, which are key factors for younger users. Bumble's focus on innovation and ecosystem health aims to reignite top-of-funnel engagement and attract younger users by addressing these needs.

Q: What are the key factors driving the expected contraction in EBITDA margins for Q1 2025? A: Anuradha Subramanian, CFO, noted that revenue headwinds and deliberate investments in product and technology to boost usage and engagement are the main factors. The company is focusing on strengthening its ecosystem and driving innovation, while maintaining discipline in marketing and other expenses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.