Why Bumble Stock Skyrocketed Today
What happened
Shares of Bumble (NASDAQ: BMBL) soared 42% on Wednesday after the online dating company delivered strong fourth-quarter growth metrics.
So what
Bumble's revenue jumped 25.7% year over year to $208.2 million. The gains were fueled by a 10.6% rise in total paying users, to 3 million, and a 14% increase in average revenue per paying user (ARPPU), to $22.83.
Notably, Bumble's app-based sales are growing at an impressive clip. Bumble App revenue soared 42.2% to $150.5 million, driven by a 29% rise in paying users, to 1.6 million.
Image source: Getty Images.
Moreover, Bumble's losses are narrowing as it scales its user base. Its net loss checked in at 7% of revenue compared to 15.8% in the year-ago quarter. Bumble's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), in turn, climbed 24.3% to $54.8 million. In a press release, CEO Whitney Wolfe Herd said:
In our first year as a public company, and with our mission at the forefront of everything we do, we successfully executed on our core strategic priorities: driving scale and engagement, increasing monetization, and improving profitability.
Now what
Looking ahead, management expects Bumble to generate full-year revenue of $934 to $944 million in 2022. That would represent growth of roughly 23% compared to 2021. The company also projects that its adjusted EBITDA margin will decline slightly to between 26.5% and 27% due in part to the suspension of its operations in Russia.
Still, CFO Anu Subramanian said markets outside of Bumble's core U.S. operations will remain a key driver of its future growth. "We expect Bumble App to have another strong year in 2022 and grow revenue 34% to 36% year over year, driven by continued international expansion and product innovation," Subramanian said.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Bumble Inc. The Motley Fool has a disclosure policy.
