Total revenue for Q1 2024 reached $268 million, a 10% increase year-over-year, with Bumble App revenue at $216 million, up 11%.
Adjusted EBITDA was $74 million, representing 28% of revenue.
Returned $84 million to shareholders through stock repurchase program.
Total paying users increased to 4 million, a 16% increase, while the average revenue per paying user (ARPPU) was $21.84.
Product and Market Developments
Launched new features and a refreshed brand identity for the Bumble app aimed at improving the user experience, trust and safety, and monetization options.
Expanded market share internationally, particularly in Western Europe and Latin America.
Introduced the updated Premium+ subscription tier with enhanced features.
Received positive early feedback from the Bumble app relaunch, with improvements noted in engagement trends.
Strategic Focus and Future Outlook
Focused on addressing evolving customer needs, especially among Gen Z, by enhancing flexibility and autonomy in how connections are made.
Plans to further develop Bumble BFF to address the demand for genuine human connections beyond dating.
Integrating AI into offerings to accelerate innovation and drive efficiency.
Undergoing organizational transformations to enhance agility and efficiency, including workforce reductions expected to conclude in early Q3 2024.
Q1 2024 Financial Details
Badoo App and Other revenue grew 7% to $52 million, marking the fourth consecutive quarter of year-over-year positive revenue growth for Badoo.
Total GAAP costs and expenses were $219 million, a 6% decrease year-over-year.
Net earnings for Q1 were $34 million, compared to a loss of $2 million in the previous year.
Outlook for Q2 and Full Year 2024
Q2 2024 revenue is projected to be between $269 million and $275 million, with Bumble App revenue expected to be between $218 million and $222 million.
Adjusted EBITDA for Q2 2024 is estimated to be between $69 million and $73 million.
Full Year 2024 revenue growth rate is expected to be between 8% to 11%, with Bumble App revenue growing between 9% to 11%.
Full Year 2024 adjusted EBITDA margin expansion is expected to be at least 300 basis points year-over-year.
Question and Answer
Marketing Strategy and Performance Metrics
Question
Can you elaborate on the marketing strategy for the Bumble app relaunch, including the use of college ambassadors and influencers, and how will you measure its performance?
Answer
The marketing strategy for the Bumble app relaunch is focused on a multichannel approach, including out-of-home, digital, college ambassadors, and influencers, to reach a broad customer base and engage with younger users.
Performance will be measured using metrics such as top-of-funnel impressions, sentiment analysis, and full-funnel transformation, tracking customer engagement and app downloads.
Pricing Optimization and ARPPU Impact
Question
Have you seen any early impacts from pricing optimizations, and do you expect them to affect ARPPU this year?
Answer
The company is still in the early stages of monetization but is confident in the growth potential of its subscription tiers, particularly the Premium+ tier introduced a few months ago.
Recent improvements to Premium+ features, such as profile photo analysis and curated matches, are aimed at increasing conversion and ARPPU across all tiers.
Leading Features of the App Relaunch
Question
What specific features of the app relaunch were chosen to lead with and create a new brand message, and why were they selected?
Answer
The primary focus of the relaunch was on reinvigorating Bumble’s brand as a platform that empowers women through its “Make The First Move” feature.
The company expanded this feature to give women more control and autonomy in initiating conversations, aligning with customer feedback and the evolving definition of female empowerment.
Additionally, the relaunch introduced profile experience improvements, enhanced algorithm for personalized matches, added safety capabilities, and increased the minimum number of photos for self-expression, all aimed at helping users be successful in the app.
Badoo’s Growth and Success Metrics
Question
Has Badoo turned a corner in terms of growth and what does success look like for that business in the near and medium term?
Answer
Badoo has shown growth in user numbers and the recent product relaunch and targeted marketing campaign have resonated with customers, particularly in instilling confidence in dating.
The company will continue to fine-tune the product roadmap based on customer feedback and focus on helping users find matches and enjoy a positive dating experience.
Bumble’s Evolution and Product Roadmap
Question
Can you elaborate on the Bumble evolution, the launch of new products, and what it means for the company? Is there an expectation of a positive impact from the app relaunch in the Q2 guidance?
Answer
The company is operating at a faster pace of innovation, driven by a strong technology platform and a focus on AI and generative AI to enhance the customer experience and support healthy and equitable connections.
Key areas of focus for product development include profile experience and creation, understanding user intent evolution, and improving matching and compatibility.
The company is confident in the potential of AI and generative AI to create transformative experiences and is attracting top talent in product and technology to execute its product roadmap.
The Q2 guidance assumes that current top-of-funnel trends will continue and the company is closely monitoring the app relaunch and making tweaks to the product and user experience.
BFF Strategy and Platform Evolution
Question
Has the strategy around BFF (Bumble’s friend-finding feature) and its role in the portfolio shifted, and can you provide more details on this?
Answer
The company believes that Bumble can play a more significant role in people’s lives beyond dating and is reevaluating its approach to BFF to better address the needs of younger users who are feeling lonely and disconnected.
The vision for BFF is to help users find groups of people with similar interests and facilitate real-life, human connections, aligning with the brand’s mission and the evolving needs of its customer base.
App Relaunch Testing and Back-Half Acceleration
Question
What did you see in the testing of the app relaunch that gives you conviction in the back-half acceleration, and are there factors beyond app improvements that contribute to this confidence?
Answer
Early data on engagement, adoption of new features, and matching has been promising, but the company is still monitoring results and user experience in various markets.
The back-half acceleration is supported by a series of product changes and feature launches throughout the year, along with strong brand moments to keep Bumble top of mind for users.
The company is also seeing favorable trends in international growth, strong download growth, and market share gains, contributing to its confidence in the second half of the year.
M&A Criteria and Technology Integration
Question
Can you discuss the criteria for pursuing M&A opportunities, including any specific demographics, geographies, or use cases that are a good fit for inorganic growth?
Answer
The company’s approach to M&A is driven by the goal of delivering seamless experiences for customers through technology integration.
The company evaluates M&A opportunities based on their potential to accelerate its long-term mission and create value across its customers’ lives, prioritizing the alignment of technology and innovation with its goals.
Impact of New “Make the First Move” Features
Question
How have the new “Make the First Move” features, which provide more options for women in initiating conversations, impacted app interactions and brand perception, and have they had a greater impact on women or men?
Answer
The new features have been well-received by both women and men, with women expressing appreciation for the added control in initiating conversations and men benefiting from increased conversation starters and more engaging discussions.
Bumble App Payer Net Addition Trends
Question
Can you provide insight into the balance of the year for Bumble App payer net addition trends and whether the app relaunch will impact typical seasonal trends?
Answer
The company expects Q2 Bumble App payer net additions to be between 70,000 and 80,000, with a step-up in Q3 due to seasonality and the impact of the app relaunch.
Stock-Based Compensation Expectations
Question
Can you provide guidance on stock-based compensation expectations for the remainder of the year, considering the unusual factors in Q1?
Answer
Q1 had an unusual stock-based compensation expense due to workforce transformation and employee terminations.
The company is finalizing its workforce transformation and will provide better visibility into stock-based compensation trajectory going forward, but overall levels are expected to be lower than historical levels for the full year.
Revenue Growth Trajectory for the Year
Question
Can you explain the shape of revenue growth for the year, which appears to show a significant step down in the current quarter followed by a bounce back in the back half of the year?
Answer
The Q2 revenue growth for Bumble App is expected to be slightly lower than Q1, reflecting continued trends in top-of-funnel engagement, particularly in the U.S. for younger users.
The second half of the year is anticipated to see improvements in trends due to the app relaunch, product feature launches, and marketing efforts, leading to a reacceleration of growth.
