What happened
Bumble (NASDAQ: BMBL) shareholders trounced the S&P 500 on Thursday as the stock jumped 11% by 3:15 p.m. ET, compared to a 0.8% increase in the wider market. The rally put the online-dating platform's shares closer to positive territory, but they remain down about 15% so far in 2022.
Wednesday's spike came after the company revealed more details about its latest operating results.
So what
In a Wednesday filing with the SEC, Bumble provided additional metrics that added context around the operating trends that investors applauded earlier in the month. Its 10-K annual report for the 2021 year broke down growth between its Bumble and Badoo apps, which are both attracting more users who are spending more on the platforms.
Management highlighted success in boosting average revenue per paying user, which rose to $22 last year from $19. "We continually develop new monetization features," executives said, "to increase adoption of in-app purchases."
Now what
Bumble's most attractive growth opportunities involve expanding into less crowded markets in places like Europe, Asia, and Latin America. Shareholders are hoping that by achieving a bigger scale through this global business, the company can generate consistently strong earnings over time.
Image source: Getty Images.
Losses are still happening as management prioritizes growth, but losses improved to 7% of sales this year from 15% of sales a year ago.
Bumble stock should deliver better long-term returns for investors if it continues moving toward profitability, while expanding its service to more users around the globe. Its latest results confirm that people are happily using its digital platform to forge more real-world connections. That's fertile ground for the company to build on in 2022 and beyond.
10 stocks we like better than Bumble Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Bumble Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 3, 2022
Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool recommends Bumble Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
