Bumble (BMBL) Falls on Slashed Revenue Guidance, Q2 Results Seen as 'Solid'

August 11, 2022 7:05 AM EDT
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Price: $22.17 +4.48%

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Shares of Bumble (NASDAQ: BMBL) are trading over 7% lower in premarket Thursday after the dating app business slashed its revenue forecast for the full year.

Bumble reported a loss per share of $0.03 to miss on the consensus that called for a loss of $0.01 per share. Revenue came in at $220.5 million, slightly ahead of the $219.3 million estimate. The company said it has 3.02 million paying users, which is better than the 3 million estimate.

For this quarter, Bumble sees adjusted Ebitda between $58 million and $60 million on revenue of $236 million and $240 million. This is worse than the analyst consensus of an adjusted Ebitda of $62 million on revenue of $244.9 million.

On the earnings call, the management said it now expects net adds in Q3 to be lower than previously expected and Q4 net adds to be higher than previously expected.

On a full-year basis, bumble cut its revenue outlook to $920 million to $930 million from the prior $934 million to $944 million, which is again worse than the analyst estimate of $934.1 million. The slashed full-year revenue guidance reflects the lowered revenue for the Bumble app.

Raymond James analyst Andrew Marok said BMBL delivered “solid Q2 results,” although guidance was softer.

“While we believe that Bumble is relatively resistant to macro challenges, we continue to monitor the situation as trade-down risk remains for any freemium app. Overall, we believe the weakness in the aftermarket is overdone; the underlying fundamentals have changed little,” Marok wrote in a note.

Piper Sandler analyst Matt Farrell raised the price target to $30 from $21 on the Neutral-rated BMBL stock.

“Overall, we continue to prefer other names to play the online dating market right now,” he urged clients in a research note.

By Senad Karaahmetovic

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