Total Revenue Increased 24% to
Bumble App Revenue Increased 39% to
Raising Full Year 2021 Revenue and Adjusted EBITDA Outlook
“In the third quarter, we delivered strong revenue growth and successful execution across our strategic priorities including driving user engagement, expanding into new markets, launching innovative product and safety features, and improving our overall monetization,” said
Third Quarter 2021 Financial and Operational Highlights:
(All comparisons relative to the Third Quarter 2020)
- Total revenue increased 24% to
$200.5 million .- Bumble App Revenue grew 39% to
$142 .5 million. Badoo App and Other Revenue declined 3% to$58 .0 million.
- Bumble App Revenue grew 39% to
- Total paying users increased to 2.9 million.
- Total average revenue per paying user ("ARPPU") increased to
$22.97 , compared to$19.38 . - Net loss was
$10.7 million and net loss margin was (5.3)%, compared to net loss of$22.8 million and net loss margin of (14.1)%. - Adjusted EBITDA was $54.5 million, or 27.2% of revenue, compared to $53.7 million, or 33.1% of revenue.
“Our strong results reflect continued growth in paying users and ARPPU. We also grew adjusted EBITDA year over year while continuing to make disciplined investments in product, marketing, and our people,” added
Key Operating Metrics:
(In thousands, except ARPPU) | Three Months Ended 2021 | Three Months Ended 2020 | ||||||
Key Operating Metrics | ||||||||
Bumble App Paying Users | 1,532.6 | 1,282.1 | ||||||
1,333.4 | 1,457.7 | |||||||
Total Paying Users | 2,866.0 | 2,739.8 | ||||||
Bumble App Average Revenue per Paying User | $ | 30.99 | $ | 26.67 | ||||
$ | 13.75 | $ | 12.98 | |||||
Total Average Revenue per Paying User | $ | 22.97 | $ | 19.38 |
Balance Sheet:
As of
Financial results will not be final until Bumble files its quarterly report on Form 10-Q for the period. Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”
Financial Outlook:
Bumble anticipates total revenue and adjusted EBITDA for the fourth quarter and year ending
Fourth quarter 2021:
- Total revenue in the range of
$208 to$211 million . - Adjusted EBITDA in the range of
$53 to$55 million .
Full year 2021:
- Total revenue in the range of
$765 to$768 million . - Adjusted EBITDA in the range of
$205 to$207 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 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 third quarter 2021 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 (benefit) provision, interest (income) expense, depreciation and amortization, 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 external investments, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business and tax receivable agreement liability remeasurement benefit, 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 (income) expense, depreciation and amortization, 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 external investments, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business and tax receivable agreement liability remeasurement benefit.
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 our current views with respect to, among other things, our operations, our financial performance, our industry, the impact of the Coronavirus Disease 2019 (“COVID-19”) on our business 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 Blackstone 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 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 Annual Report on Form 10-K for the year ended
About Bumble
For more information about Bumble, please visit www.bumble.com and follow @Bumble on social platforms.
Source:
Investor Contact
ir@team.bumble.com
Media Contact
press@team.bumble.com
Condensed Consolidated Balance Sheets
(In thousands, except share and per share information)
(Unaudited)
ASSETS | ||||||||
Cash and cash equivalents | $ | 291,575 | $ | 128,029 | ||||
Accounts receivable | 44,953 | 41,595 | ||||||
Other current assets | 83,540 | 81,387 | ||||||
Total current assets | 420,068 | 251,011 | ||||||
Right-of-use assets | 11,700 | 11,711 | ||||||
Lease receivable | 1,106 | 1,069 | ||||||
Property and equipment, net | 13,942 | 16,833 | ||||||
1,540,112 | 1,540,915 | |||||||
Intangible assets, net | 1,743,389 | 1,812,410 | ||||||
Deferred tax assets, net | 14,654 | — | ||||||
Other noncurrent assets | 4,238 | 3,319 | ||||||
Total assets | $ | 3,749,209 | $ | 3,637,268 | ||||
LIABILITIES AND BUMBLE INC. SHAREHOLDERS’ / | ||||||||
Accounts payable | $ | 11,536 | $ | 23,741 | ||||
Deferred revenue | 39,042 | 31,269 | ||||||
Accrued expenses and other current liabilities | 104,760 | 180,986 | ||||||
Current portion of long-term debt, net | 2,588 | 5,338 | ||||||
Total current liabilities | 157,926 | 241,334 | ||||||
Long-term debt, net | 620,998 | 820,876 | ||||||
Deferred tax liabilities, net | — | 428,087 | ||||||
Tax receivable agreement liability | 381,152 | — | ||||||
Other liabilities | 125,346 | 62,190 | ||||||
Total liabilities | $ | 1,285,422 | $ | 1,552,487 | ||||
Commitments and contingencies | ||||||||
Class A common stock (par value | 1,292 | — | ||||||
Class B common stock (par value | — | — | ||||||
Preferred stock (par value | — | — | ||||||
Limited Partners’ interest | — | 1,903,121 | ||||||
Additional paid-in capital | 1,470,451 | — | ||||||
Accumulated deficit | (42,813 | ) | — | |||||
Accumulated other comprehensive income | 173,229 | 180,852 | ||||||
1,602,159 | 2,083,973 | |||||||
Noncontrolling interests | 861,628 | 808 | ||||||
Total shareholders’ / owners’ equity | 2,463,787 | 2,084,781 | ||||||
Total liabilities and shareholders’ / owners’ equity | $ | 3,749,209 | $ | 3,637,268 |
Condensed Consolidated Statements of Operations
(In thousands, except per share / unit information)
(Unaudited)
Successor | Predecessor | ||||||||||||||||||||
Three Months Ended 2021 | Three Months Ended 2020 | Nine Months Ended 2021 | Period from through 2020 | Period from through 2020 | |||||||||||||||||
Revenue | $ | 200,509 | $ | 162,300 | $ | 557,439 | $ | 376,587 | $ | 39,990 | |||||||||||
Operating costs and expenses: | |||||||||||||||||||||
Cost of revenue | 56,627 | 43,523 | 155,171 | 102,017 | 10,790 | ||||||||||||||||
Selling and marketing expense | 55,105 | 37,744 | 151,654 | 104,511 | 11,157 | ||||||||||||||||
General and administrative expense | 45,726 | 47,958 | 215,631 | 128,120 | 44,907 | ||||||||||||||||
Product development expense | 24,231 | 12,860 | 84,197 | 29,915 | 4,087 | ||||||||||||||||
Depreciation and amortization expense | 27,022 | 25,404 | 80,882 | 65,749 | 408 | ||||||||||||||||
Total operating costs and expenses | 208,711 | 167,489 | 687,535 | 430,312 | 71,349 | ||||||||||||||||
Operating earnings (loss) | (8,202 | ) | (5,189 | ) | (130,096 | ) | (53,725 | ) | (31,359 | ) | |||||||||||
Interest income (expense) | (5,962 | ) | (4,919 | ) | (19,612 | ) | (14,704 | ) | 50 | ||||||||||||
Other income (expense), net | 3,773 | 4,021 | 15,495 | 3,474 | (882 | ) | |||||||||||||||
Income (loss) before income taxes | (10,391 | ) | (6,087 | ) | (134,213 | ) | (64,955 | ) | (32,191 | ) | |||||||||||
Income tax benefit (provision) | (280 | ) | (16,737 | ) | 435,837 | (19,143 | ) | (365 | ) | ||||||||||||
Net earnings (loss) | (10,671 | ) | (22,824 | ) | 301,624 | (84,098 | ) | (32,556 | ) | ||||||||||||
Net earnings (loss) attributable to noncontrolling interests | (3,786 | ) | (35 | ) | (26,198 | ) | (99 | ) | 1,917 | ||||||||||||
Net earnings (loss) attributable to | $ | (6,885 | ) | $ | (22,789 | ) | $ | 327,822 | $ | (83,999 | ) | $ | (34,473 | ) | |||||||
Net earnings (loss) per share / unit attributable to | |||||||||||||||||||||
Basic earnings (loss) per share / unit | $ | (0.06 | ) | $ | (0.01 | ) | $ | 1.60 | $ | (0.03 | ) | ||||||||||
Diluted earnings (loss) per share / unit | $ | (0.06 | ) | $ | (0.01 | ) | $ | 1.56 | $ | (0.03 | ) |
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Successor | Predecessor | ||||||||||||||||||||
Three Months Ended 2021 | Three Months Ended 2020 | Nine Months Ended 2021 | Period from through 2020 | Period from through 2020 | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net earnings (loss) | $ | (10,671 | ) | $ | (22,824 | ) | $ | 301,624 | $ | (84,098 | ) | $ | (32,556 | ) | |||||||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||
Depreciation and amortization | 27,022 | 25,404 | 80,882 | 65,749 | 408 | ||||||||||||||||
Changes in fair value of interest rate swaps | (46 | ) | 1,828 | (2,789 | ) | 1,828 | — | ||||||||||||||
Changes in fair value of contingent earn-out liability | 5,221 | 19,100 | 77,659 | 19,100 | — | ||||||||||||||||
Non-cash lease expense | 1,390 | 1,323 | 4,247 | 3,585 | 410 | ||||||||||||||||
Deferred income tax | 30 | 16,460 | (441,811 | ) | 22,046 | 26 | |||||||||||||||
Stock-based compensation expense | 23,763 | 8,942 | 99,502 | 13,118 | 4,156 | ||||||||||||||||
Net foreign exchange difference | 556 | (180 | ) | (6,865 | ) | 4,981 | (198 | ) | |||||||||||||
Other, net | 603 | 2,143 | 4,478 | 2,531 | 31 | ||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Accounts receivable | 20,784 | (6,710 | ) | (4,954 | ) | (9,196 | ) | (17,599 | ) | ||||||||||||
Other current assets | 155 | (9,435 | ) | (5,284 | ) | (23,688 | ) | (2,175 | ) | ||||||||||||
Accounts payable | (4,509 | ) | 6,458 | (13,124 | ) | (6,679 | ) | 12,984 | |||||||||||||
Deferred revenue | 1,713 | 4,889 | 7,773 | 20,690 | 289 | ||||||||||||||||
Legal liabilities | (8,004 | ) | (9,645 | ) | (45,631 | ) | (13,125 | ) | (521 | ) | |||||||||||
Accrued expenses and other current liabilities | (13,432 | ) | (1,899 | ) | (42,525 | ) | (15,807 | ) | 31,439 | ||||||||||||
Other, net | 318 | 986 | 271 | 6 | — | ||||||||||||||||
Net cash provided by (used in) operating activities | 44,893 | 36,840 | 13,453 | 1,041 | (3,306 | ) | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | (3,836 | ) | (2,347 | ) | (9,388 | ) | (5,779 | ) | (1,045 | ) | |||||||||||
Acquisition of business, net of cash acquired | — | — | — | (2,801,262 | ) | — | |||||||||||||||
Other, net | 28 | (316 | ) | 31 | (447 | ) | 16 | ||||||||||||||
Net cash used in investing activities | (3,808 | ) | (2,663 | ) | (9,357 | ) | (2,807,488 | ) | (1,029 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Proceeds from issuance of Class A common stock sold in initial public offering, net of offering costs | — | — | 2,358,371 | — | — | ||||||||||||||||
Payments to purchase and retire common stock | — | — | (1,018,365 | ) | — | — | |||||||||||||||
Purchase of Common Units from Pre-IPO Common Unitholders in the initial public offering | — | — | (973,289 | ) | — | — | |||||||||||||||
Proceeds from exercise of options | 545 | — | 545 | — | — | ||||||||||||||||
Proceeds from repayments of loans to related companies | — | — | — | 41,929 | — | ||||||||||||||||
Debt issuance costs | — | — | — | (16,281 | ) | — | |||||||||||||||
Limited Partners’ interest | — | 553 | — | 2,334,785 | — | ||||||||||||||||
Proceeds from term loan | — | — | — | 575,000 | — | ||||||||||||||||
Repayment of term loan | (1,438 | ) | (1,470 | ) | (207,534 | ) | (2,875 | ) | — | ||||||||||||
Net cash provided by (used in) financing activities | (893 | ) | (917 | ) | 159,728 | 2,932,558 | — | ||||||||||||||
Effects of exchange rate changes on cash and cash equivalents | (638 | ) | 3,034 | (535 | ) | (3,685 | ) | 813 | |||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 39,554 | 36,294 | 163,289 | 122,426 | (3,522 | ) | |||||||||||||||
Cash and cash equivalents and restricted cash, beginning of the period | 252,021 | 140,059 | 128,286 | 53,927 | 57,449 | ||||||||||||||||
Cash and cash equivalents and restricted cash, end of the period | 291,575 | 176,353 | 291,575 | 176,353 | 53,927 | ||||||||||||||||
Less restricted cash | — | 258 | — | 258 | 258 | ||||||||||||||||
Cash and cash equivalents, end of the period | $ | 291,575 | $ | 176,095 | $ | 291,575 | $ | 176,095 | $ | 53,669 |
Reconciliation of GAAP to NON-GAAP Financial Measures
(Unaudited)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA
Successor | Predecessor | ||||||||||||||||||||
(In thousands, except percentages) | Three Months Ended 2021 | Three Months Ended 2020 | Nine Months Ended 2021 | Period from through 2020 | Period from 2020 through 2020 | ||||||||||||||||
Net earnings (loss) | $ | (10,671 | ) | $ | (22,824 | ) | $ | 301,624 | $ | (84,098 | ) | $ | (32,556 | ) | |||||||
Add back: | |||||||||||||||||||||
Income tax (benefit) provision | 280 | 16,737 | (435,837 | ) | 19,143 | 365 | |||||||||||||||
Interest (income) expense | 5,962 | 4,919 | 19,612 | 14,704 | (50 | ) | |||||||||||||||
Depreciation and amortization | 27,022 | 25,404 | 80,882 | 65,749 | 408 | ||||||||||||||||
Stock-based compensation expense | 23,763 | 8,942 | 99,502 | 13,118 | 336 | ||||||||||||||||
Employer costs related to stock-based compensation (1) | 2,438 | — | 2,438 | — | — | ||||||||||||||||
Litigation costs, net of insurance reimbursements (2) | 2,019 | (8,365 | ) | 3,794 | (7,365 | ) | — | ||||||||||||||
Foreign exchange (gain) loss (3) | (2,011 | ) | 3,964 | (10,650 | ) | 4,921 | 523 | ||||||||||||||
Changes in fair value of interest rate swaps(4) | (46 | ) | 1,828 | (2,789 | ) | 1,828 | — | ||||||||||||||
Transaction and other costs(5) | 2,208 | 3,996 | 18,232 | 51,848 | 40,345 | ||||||||||||||||
Changes in fair value of contingent earn-out liability | 5,221 | 19,100 | 77,659 | 19,100 | — | ||||||||||||||||
Changes in fair value of external investments | (14 | ) | — | (333 | ) | — | — | ||||||||||||||
Tax receivable agreement liability remeasurement benefit (6) | (1,687 | ) | — | (1,687 | ) | — | — | ||||||||||||||
Adjusted EBITDA | $ | 54,484 | $ | 53,701 | $ | 152,447 | $ | 98,948 | $ | 9,371 | |||||||||||
Net earnings (loss) margin(7) | (5.3 | )% | (14.1 | )% | 54.1 | % | (22.3 | )% | (81.4 | )% | |||||||||||
Adjusted EBITDA margin | 27.2 | % | 33.1 | % | 27.3 | % | 26.3 | % | 23.4 | % |
(1) | Represents employer portion of |
(2) | Represents certain litigation costs, net of insurance reimbursements associated with pending litigations or settlements of litigation. |
(3) | Represents foreign exchange (gain) loss due to foreign currency transactions. |
(4) | Represents fair value (gain) loss on interest rate swaps. |
(5) | Represents legal, accounting, advisory fees and certain other costs related to our offerings, including the Sponsor Acquisition, our IPO and the Reorganization, and the secondary offering. |
(6) | Represents changes in tax receivable agreement liability due to tax rate changes and unrelated to exchanges of Common Units for Class A shares. |
(7) | Net earnings margin for the nine months ended |
Reconciliation of Net Cash Provided By (Used in) Operating Activities to Free Cash Flow
Successor | Predecessor | |||||||||||||||||||
(In thousands, except percentages) | Three Months Ended 2021 | Three Months Ended 2020 | Nine Months Ended 2021 | Period from through 2020 | Period from 2020 through 2020 | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 44,893 | $ | 36,840 | $ | 13,453 | $ | 1,041 | $ | (3,306 | ) | |||||||||
Less: | ||||||||||||||||||||
Capital expenditures | (3,836 | ) | (2,347 | ) | (9,388 | ) | (5,779 | ) | (1,045 | ) | ||||||||||
Free cash flow | $ | 41,057 | $ | 34,493 | $ | 4,065 | $ | (4,738 | ) | $ | (4,351 | ) | ||||||||
Operating cash flow conversion | (420.7 | )% | (161.4 | )% | 4.5 | % | (1.2 | )% | 10.2 | % | ||||||||||
Free cash flow conversion | 75.4 | % | 64.2 | % | 2.7 | % | (4.8 | )% | (46.4 | )% |
Supplementary Information (Unaudited)
Stock-Based Compensation Expense
Successor | Predecessor | ||||||||||||||||||||
(In thousands) | Three Months Ended 2021 | Three Months Ended 2020 | Nine Months Ended 2021 | Period from through 2020 | Period from through 2020 | ||||||||||||||||
Cost of revenue | $ | 808 | 155 | $ | 3,019 | $ | 174 | $ | — | ||||||||||||
Selling and marketing expense | 2,545 | 721 | 10,186 | 805 | 75 | ||||||||||||||||
General and administrative expense | 11,287 | 5,341 | 49,155 | 9,093 | 3,997 | ||||||||||||||||
Product development expense | 9,123 | 2,725 | 37,142 | 3,046 | 84 | ||||||||||||||||
Total stock-based compensation expense | $ | 23,763 | $ | 8,942 | $ | 99,502 | $ | 13,118 | $ | 4,156 |
Source:
2021 GlobeNewswire, Inc., source