Fourth Quarter Revenue Increased 31% to
Bumble App Fourth Quarter Revenue Increased 47% to
Fourth Quarter Total Paying Users* Increased 32% to 2.7 million
“We are committed to our mission, our customers and to advancing the business, which fueled our strong fourth quarter and full year 2020 results,” said
Full year 2020 revenue increased to
Fourth Quarter 2020 Operational and Financial Results:
(All comparisons relative to the Fourth Quarter 2019)
- Revenue increased 31.1% to
$165.6 million , compared to $126.3 million. Bumble app revenue increased 46.6% to$105.8 million and Badoo app and other revenue increased 10.5% to$59.8 million . - Total Paying Users increased 32.5% to 2.7 million, compared to 2.0 million.
- Total ARPPU was
$20.02 , compared to$19.99 . - Net loss was $(26.1) million, or (15.7)% of revenue, compared to net earnings of
$17.2 million , or 13.6% of revenue. - Adjusted EBITDA was $44.1 million, or 26.6% of revenue, compared to $21.9 million, or 17.3% of revenue.
Full Year 2020 Operational and Financial Results:
(All comparisons relative to the Full Year 2019)
- Revenue was
$542 .2 million for the period fromJanuary 29, 2020 toDecember 31, 2020 and$40 .0 million for the period fromJanuary 1, 2020 toJanuary 28, 2020 , compared to$488 .9 million. - Bumble App Revenue was
$337 .2 million for the period fromJanuary 29, 2020 toDecember 31, 2020 and$23 .3 million for the period fromJanuary 1, 2020 toJanuary 28, 2020 , compared to$275 .5 million. Badoo App and Other Revenue was$205 .0 million for the period fromJanuary 29, 2020 toDecember 31, 2020 and$16 .7 million for the period fromJanuary 1, 2020 toJanuary 28, 2020 , compared to$213 .4 million.- Total Paying Users increased 22.2% to 2.5 million, compared to 2.1 million.
- Total ARPPU was
$18.89 , compared to$19.22 . - Net (loss) earnings was $(110.2) million, or (20.3)% of revenue, for the period from
January 29, 2020 toDecember 31, 2020 and $(32.6) million, or (81.4)% of revenue, for the period fromJanuary 1, 2020 toJanuary 28, 2020 , compared to$85 .8 million, or 17.6% of revenue. - Adjusted EBITDA was $143.1 million, or 26.4% of revenue, for the period from
January 29, 2020 toDecember 31, 2020 and$9 .4 million, or 23.4% of revenue, for the period fromJanuary 1, 2020 toJanuary 28, 2020 , compared to$101 .8 million, or 20.8% of revenue.
“During the fourth quarter, we demonstrated our ability to continue to scale the business and rapidly adapt to the pandemic, while expanding Adjusted EBITDA,” added
*Please see “Definitions” section below for the definition of “Paying Users”
Key Operating Metrics:
(in thousands, except ARPPU) | Quarter Ended December 31, 2020 | Quarter Ended December 31, 2019 | ||||||
Bumble App Paying Users | 1,268.7 | 890.6 | ||||||
1,424.6 | 1,142.9 | |||||||
Total Paying Users | 2,693.3 | 2,033.5 | ||||||
Bumble App Average Revenue per Paying User | $ | 27.79 | $ | 27.00 | ||||
$ | 13.10 | $ | 14.52 | |||||
Total Average Revenue per Paying User | $ | 20.02 | $ | 19.99 | ||||
Financial Outlook:
Bumble anticipates Revenue and Adjusted EBITDA for the quarter ending
First quarter 2021:
- Revenue in the range of
$163 to$165 million - Adjusted EBITDA in the range of
$41 to$42 million .
Full year 2021:
- Revenue in the range of
$716 to$726 million - Adjusted EBITDA in the range of
$173 to$178 million .
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.
With regards to the Non-GAAP Adjusted EBITDA outlook provided above, a reconciliation to GAAP net earnings (loss) has not been provided 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.
Conference Call and Webcast Information
Bumble will host a conference call and live webcast to discuss its fourth quarter and full year 2020 financial results at
Definitions
Bumble App Average Revenue per Paying User is 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.
Bumble App Paying User is a user that has purchased or renewed a Bumble subscription plan and/or made an in-app purchase on the Bumble 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.
Predecessor refers to
Successor refers to
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. These measures include: Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Conversion. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide visibility to the underlying continuing operating performance by excluding the impact of certain expenses, including income tax provision, interest (income) expense, depreciation and amortization, stock-based compensation expense, foreign exchange loss (gain), changes in fair value of contingent earn-out liability and interest rate swaps, transaction costs and one-time litigation costs, as management does not believe these expenses are representative of our core earnings. 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 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 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 expense (income), depreciation and amortization, stock-based compensation expense, foreign exchange loss (gain), changes in fair value of contingent earn-out liability, changes in fair value of interest rate swaps, transaction costs and one-time litigation 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.
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 our current views with respect to, among other things, our operations, our financial performance and our industry and other non-historical statements, including without limitation 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
- 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 orGoogle Play Store , and offset related fees - the impact of data security breaches or cyber attacks on our systems and the costs of remediation related to any such incidents
- the continued development and upgrading of our technology platform and our ability to adapt to rapid technological developments and changes in a timely and cost-effective manner
- 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 - foreign currency exchange rate fluctuations
- risks relating to certain of our international operations, including successful expansion into new markets
- Affiliates of The Blackstone Group Inc.’s (“Blackstone”) and our Founder’s control of us
- the outsized voting rights of affiliates of
Blackstone and our Founder - the inability 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 the Coronavirus Disease 2019 (“COVID-19”) (and other widespread health emergencies or pandemics) and measures taken in response, lower consumer confidence in our business or in the online dating industry generally, recessionary conditions, increased unemployment rates, stagnant or declining wages, political unrest, armed conflicts or natural disasters
For additional information on these and other factors that could cause Bumble’s actual results to differ materially from expected results, please see our prospectus, dated
About Bumble
For more information about Bumble, please visit bumble.com and follow @Bumble on social platforms.
Source:
Investor Contact
ir@team.bumble.com
Media Contact
press@team.bumble.com
Consolidated Balance Sheets
(in thousands, except par value amounts)
Successor | Predecessor | ||||||||
2020 | 2019 | ||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 128,029 | $ | 57,449 | |||||
Accounts receivable | 41,595 | 34,234 | |||||||
Loans to related companies | — | 42,043 | |||||||
Other current assets | 81,387 | 36,106 | |||||||
Total current assets | 251,011 | 169,832 | |||||||
Right-of-use assets | 11,711 | 16,291 | |||||||
Lease receivable | 1,069 | 1,011 | |||||||
Property and equipment, net | 16,833 | 14,033 | |||||||
1,540,915 | — | ||||||||
Intangible assets, net | 1,812,410 | 1,241 | |||||||
Deferred tax assets, net | — | 7,055 | |||||||
Other noncurrent assets | 3,319 | 835 | |||||||
Total assets | $ | 3,637,268 | $ | 210,298 | |||||
LIABILITIES AND BUZZ HOLDINGS L.P. OWNERS’ / WORLDWIDE VISION LIMITED SHAREHOLDERS’ EQUITY | |||||||||
Accounts payable | $ | 23,741 | $ | 8,066 | |||||
Deferred revenue | 31,269 | 24,749 | |||||||
Accrued expenses and other current liabilities | 180,986 | 88,649 | |||||||
Current portion of long-term debt, net | 5,338 | — | |||||||
Total current liabilities | 241,334 | 121,464 | |||||||
Long-term debt, net | 820,876 | — | |||||||
Deferred tax liabilities | 428,087 | — | |||||||
Other liabilities | 62,190 | 59,152 | |||||||
Total liabilities | $ | 1,552,487 | $ | 180,616 | |||||
Commitments and contingencies | |||||||||
Limited Partners’ interest (2,453,785 Class A units and 153,274 Class B units issued and outstanding as of | 1,903,121 | — | |||||||
Issued share capital ( shares issued and outstanding as of | — | 11 | |||||||
Additional paid-in capital | — | 3,449 | |||||||
Accumulated other comprehensive income | 180,852 | 644 | |||||||
— | (3,788 | ) | |||||||
Retained earnings | — | 23,352 | |||||||
2,083,973 | 23,668 | ||||||||
Noncontrolling interests | 808 | 6,014 | |||||||
Total owners’ / shareholders’ equity | 2,084,781 | 29,682 | |||||||
Total liabilities and owners’ / shareholders’ equity | $ | 3,637,268 | $ | 210,298 | |||||
Consolidated Statements of Operations
(in thousands, except per unit data)
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||
Quarter Ended December 31, 2020 | Quarter Ended December 31, 2019 | Period from through December 31, 2020 | Period from through January 28, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||
Revenue | $ | 165,605 | $ | 126,301 | $ | 542,192 | $ | 39,990 | $ | 488,940 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||
Cost of revenue | 44,612 | 34,713 | 146,629 | 10,790 | 139,767 | |||||||||||||||||
Selling and marketing expense | 48,077 | 40,561 | 152,588 | 11,157 | 142,902 | |||||||||||||||||
General and administrative expense | 50,495 | 19,706 | 178,615 | 44,907 | 67,079 | |||||||||||||||||
Product development expense | 17,079 | 10,195 | 46,994 | 4,087 | 39,205 | |||||||||||||||||
Depreciation and amortization expense | 25,996 | 1,831 | 91,767 | 408 | 6,734 | |||||||||||||||||
Total operating costs and expenses | 186,259 | 107,006 | 616,593 | 71,349 | 395,687 | |||||||||||||||||
Operating (loss) income | (20,654 | ) | 19,295 | (74,401 | ) | (31,359 | ) | 93,253 | ||||||||||||||
Interest (expense) income | (7,430 | ) | 156 | (22,134 | ) | 50 | 202 | |||||||||||||||
Other expense, net | (8,999 | ) | (1,989 | ) | (5,525 | ) | (882 | ) | (1,473 | ) | ||||||||||||
(Loss) earnings before tax | (37,083 | ) | 17,462 | (102,060 | ) | (32,191 | ) | 91,982 | ||||||||||||||
Income tax benefit (provision) | 11,017 | (250 | ) | (8,126 | ) | (365 | ) | (6,138 | ) | |||||||||||||
Net (loss) earnings | (26,066 | ) | 17,212 | (110,186 | ) | (32,556 | ) | 85,844 | ||||||||||||||
Net earnings attributable to noncontrolling interests | 908 | 5,111 | 808 | 1,917 | 19,698 | |||||||||||||||||
Net (loss) earnings attributable to L.P. owners / shareholders | $ | (26,974 | ) | $ | 12,101 | $ | (110,994 | ) | $ | (34,473 | ) | $ | 66,146 | |||||||||
Net loss per unit attributable to L.P. owners | ||||||||||||||||||||||
Basic loss per unit | $ | (0.01 | ) | — | $ | (0.05 | ) | — | — | |||||||||||||
Diluted loss per unit | $ | (0.01 | ) | — | $ | (0.05 | ) | — | — | |||||||||||||
Consolidated Statements of Cash Flows
(in thousands)
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||
Quarter Ended December 31, 2020 | Quarter Ended December 31, 2019 | Period from through December 31, 2020 | Period from through January 28, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||
Net (loss) earnings | $ | (26,066 | ) | $ | 17,212 | $ | (110,186 | ) | $ | (32,556 | ) | $ | 85,844 | |||||||||
Adjustments to reconcile net (loss) earnings to net cash provided by (used in) operating activities: | ||||||||||||||||||||||
Depreciation and amortization | 25,996 | 1,831 | 91,767 | 408 | 6,734 | |||||||||||||||||
Change in fair value of interest swap | (242 | ) | — | 1,586 | — | — | ||||||||||||||||
Change in fair value of contingent consideration | 8,700 | — | 27,800 | — | — | |||||||||||||||||
Non-cash lease expense | 442 | 666 | (109 | ) | (226 | ) | 952 | |||||||||||||||
Deferred income tax | (22,935 | ) | 201 | (789 | ) | 26 | 201 | |||||||||||||||
Stock-based compensation expense | 14,350 | 1,080 | 27,468 | 4,156 | 2,160 | |||||||||||||||||
Net foreign exchange difference | 1,965 | 600 | 6,945 | (198 | ) | 600 | ||||||||||||||||
Research and development tax credit | (307 | ) | (593 | ) | (1,211 | ) | — | (2,374 | ) | |||||||||||||
Other, net | 169 | 221 | 3,604 | 31 | 201 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||
Accounts receivable | 19,933 | 15,192 | 10,737 | (17,599 | ) | (5,971 | ) | |||||||||||||||
Other current assets | (23,261 | ) | (24,802 | ) | (46,949 | ) | (2,175 | ) | (21,144 | ) | ||||||||||||
Accounts payable | 9,649 | (1,556 | ) | 2,970 | 12,984 | (252 | ) | |||||||||||||||
Deferred revenue | 1,479 | 287 | 22,169 | 289 | 1,360 | |||||||||||||||||
Legal liabilities | (5,249 | ) | (268 | ) | (18,374 | ) | (521 | ) | (1,811 | ) | ||||||||||||
Accrued expenses and other current liabilities | 50,576 | 20,357 | 38,806 | 32,075 | 34,523 | |||||||||||||||||
Other liabilities | 21 | 369 | 27 | — | 369 | |||||||||||||||||
Net cash provided by (used in) operating activities | 55,220 | 30,797 | 56,261 | (3,306 | ) | 101,392 | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||
Capital expenditures | (4,853 | ) | (3,337 | ) | (10,632 | ) | (1,045 | ) | (9,674 | ) | ||||||||||||
Acquisition of business, net of cash acquired | (36,444 | ) | — | (2,837,706 | ) | — | — | |||||||||||||||
Other, net | (1,866 | ) | 25 | (2,313 | ) | 16 | (1,722 | ) | ||||||||||||||
Net cash used in investing activities | (43,163 | ) | (3,312 | ) | (2,850,651 | ) | (1,029 | ) | (11,396 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||
Proceeds from repayments of loans to related companies | — | — | 41,929 | — | — | |||||||||||||||||
Debt issuance costs | (4,824 | ) | — | (21,105 | ) | — | — | |||||||||||||||
Limited Partners’ interest | 25,626 | — | 2,360,412 | — | — | |||||||||||||||||
Proceeds from term loan | 275,000 | — | 850,000 | — | — | |||||||||||||||||
Repayment of term loan | (2,125 | ) | — | (5,000 | ) | — | — | |||||||||||||||
Issuance of loans | — | (41,965 | ) | — | — | (41,965 | ) | |||||||||||||||
Proceeds from issuance of shares | — | 104 | — | — | 104 | |||||||||||||||||
Dividends paid | (360,000 | ) | — | (360,000 | ) | — | (23,359 | ) | ||||||||||||||
Other, net | — | 24 | — | — | 24 | |||||||||||||||||
Net cash (used in) provided by financing activities | (66,323 | ) | (41,837 | ) | 2,866,236 | — | (65,196 | ) | ||||||||||||||
Effects of exchange rate changes on cash and cash equivalents | 6,199 | (1,151 | ) | 2,513 | 813 | (640 | ) | |||||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (48,067 | ) | (15,503 | ) | 74,359 | (3,522 | ) | 24,160 | ||||||||||||||
Cash and cash equivalents and restricted cash, beginning of the period | 176,353 | 72,952 | 53,927 | 57,449 | 33,289 | |||||||||||||||||
Cash and cash equivalents and restricted cash, end of the period | $ | 128,286 | $ | 57,449 | $ | 128,286 | $ | 53,927 | $ | 57,449 | ||||||||||||
Less restricted cash | 257 | — | 257 | — | — | |||||||||||||||||
Cash and cash equivalents, end of the period | $ | 128,029 | $ | 57,449 | $ | 128,029 | $ | 53,927 | $ | 57,449 | ||||||||||||
Reconciliation of GAAP to NON-GAAP Measures
Reconciliation of Net (Loss) Earnings to Adjusted EBITDA
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||
(in thousands, except percentages) | Quarter Ended 2020 | Quarter Ended 2019 | Period from through 2020 | Period from through 2020 | Year Ended 2019 | |||||||||||||||||
Net (loss) earnings | $ | (26,066 | ) | $ | 17,212 | $ | (110,186 | ) | $ | (32,556 | ) | $ | 85,844 | |||||||||
Add back: | ||||||||||||||||||||||
Income tax (benefit) provision | (11,017 | ) | 250 | 8,126 | 365 | 6,138 | ||||||||||||||||
Interest expense (income) | 7,430 | (156 | ) | 22,134 | (50 | ) | (202 | ) | ||||||||||||||
Depreciation and amortization | 25,996 | 1,831 | 91,767 | 408 | 6,734 | |||||||||||||||||
Stock-based compensation expense | 14,350 | 1,080 | 27,468 | 336 | 2,160 | |||||||||||||||||
Litigation costs (recoveries), net of insurance proceeds(1) | 1,357 | — | (6,008 | ) | — | — | ||||||||||||||||
Foreign exchange loss (2) | 9,212 | 1,654 | 14,133 | 523 | 1,160 | |||||||||||||||||
Changes in fair value of interest rate swaps(3) | (242 | ) | — | 1,586 | — | — | ||||||||||||||||
Transaction costs(4) | 14,403 | — | 66,251 | 40,345 | — | |||||||||||||||||
Changes in fair value of contingent earn-out liability | 8,700 | — | 27,800 | — | — | |||||||||||||||||
Adjusted EBITDA | $ | 44,123 | $ | 21,871 | $ | 143,071 | $ | 9,371 | $ | 101,834 | ||||||||||||
Net (loss) earnings margin | (15.7 | )% | 13.6 | % | (20.3 | )% | (81.4 | )% | 17.6 | % | ||||||||||||
Adjusted EBITDA Margin | 26.6 | % | 17.3 | % | 26.4 | % | 23.4 | % | 20.8 | % |
________
(1) | Represents certain litigation costs and insurance proceeds associated with pending litigations or settlements of litigation. For additional information, refer to Note 17, Commitments and Contingencies, within the audited consolidated financial statements and Item 3. Legal Proceedings in our Annual Report on Form 10-K for the year ended |
(2) | Represents foreign exchange loss due to foreign currency transactions. |
(3) | Represents fair value (gain) or loss on interest rate swaps. |
(4) | Represents transaction costs and professional service fees related to the Sponsor Acquisition and the initial public offering. |
Reconciliation of Net Cash Provided By (Used In) Operating Activities to Free Cash Flow
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||
(in thousands, except percentages) | Quarter Ended 2020 | Quarter Ended 2019 | Period from through 2020 | Period from through 2020 | Year Ended 2019 | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 55,220 | $ | 30,797 | $ | 56,261 | $ | (3,306 | ) | $ | 101,392 | |||||||||||
Less: | ||||||||||||||||||||||
Capital expenditures | (4,853 | ) | (3,337 | ) | (10,632 | ) | (1,045 | ) | (9,674 | ) | ||||||||||||
Free Cash Flow | $ | 50,367 | $ | 27,460 | $ | 45,629 | $ | (4,351 | ) | $ | 91,718 | |||||||||||
Operating Cash Flow Conversion(1) | (211.8 | )% | 178.9 | % | (51.1 | )% | 10.2 | % | 118.1 | % | ||||||||||||
Free Cash Flow Conversion | 114.2 | % | 125.6 | % | 31.9 | % | (46.4 | )% | 90.1 | % |
________
(1) | Operating Cash Flow Conversion is calculated based on net cash provided by (used in) operating activities as a percentage of net earnings (loss) in any measurement period. |
Source:
2021 GlobeNewswire, Inc., source