Total Revenue in 2022 Increased 19% to $903.5 million

Fourth Quarter Bumble App Revenue Increased 28% to $190.8 million

Fourth Quarter Bumble App Paying Users Increased 35% to 2.2 million; Grew 133,000 Quarter Over Quarter

AUSTIN, Texas--(BUSINESS WIRE)-- Bumble Inc. (NASDAQ: BMBL), the parent company of Bumble, Badoo, and Fruitz, today reported financial results for the fourth quarter and full year ended December 31, 2022.

“We achieved strong results in 2022 by advancing our powerful products, technology and mission to create kind connections,” said Whitney Wolfe Herd, Founder and CEO of Bumble Inc. “By delivering unique and engaging product experiences built upon a foundation of trust and safety, our team is realizing the tremendous potential of our brands. The momentum of our business continues to strengthen our confidence in our long term opportunity.“

Fourth Quarter 2022 Financial and Operational Highlights:

(All comparisons relative to the Fourth Quarter 2021)

• Total Revenue increased 16.7% to $241.6 million, compared to $207.0 million. This includes an unfavorable impact of $12.7 million from foreign currency movements year over year.
  • Bumble App revenue grew 27.7% to $190.8 million, compared to $149.4 million. This includes an unfavorable impact of $7.1 million from foreign currency movements year over year.
  • Badoo App and Other revenue declined (11.9)% to $50.8 million, compared to $57.6 million. This includes an unfavorable impact of $5.6 million from foreign currency movements year over year.
• Total Paying Users increased 14.4% to 3.4 million, compared to 3.0 million.
• Total Average Revenue per Paying User ("ARPPU") increased to $23.01, compared to $22.69.
• Net loss was $159.2 million or (65.9)% of revenue, compared to net loss of $13.9 million, or (6.7)% of revenue.
• Adjusted EBITDA was $60.5 million, or 25.0% of revenue, compared to $54.8 million, or 26.4% of revenue.

Full Year 2022 Operational and Financial Highlights:

(All comparisons relative to the Full Year 2021)

• Revenue increased 18.7% to $903.5 million, compared to $760.9 million. This includes an unfavorable impact of $41.1 million from foreign currency movements year over year.
  • Bumble App revenue grew 31.4% to $694.3 million, compared to $528.6 million. This includes an unfavorable impact of $20.9 million from foreign currency movements year over year.
  • Badoo App and Other revenue declined (10.0)% to $209.2 million, compared to $232.3 million. This includes an unfavorable impact of $20.2 million from foreign currency movements year over year.
• Total Paying Users increased 10.0% to 3.2 million, compared to 2.9 million.
• Total ARPPU was $23.03, compared to $21.55.
• Net loss was $(114.1) million, or (12.6)% of revenue, compared to net earnings of $281.7 million, or 37.0% of revenue.
• Adjusted EBITDA was $226.9 million, or 25.1% of revenue, compared to $207.2 million, or 27.2% of revenue.

“We delivered total revenue growth of 19% and an adjusted EBITDA margin of 25% in 2022,” said Anu Subramanian, Chief Financial Officer of Bumble Inc. “The resilience of our business is underscored by Bumble App’s half a million paying user net additions and healthy 31% revenue increase for the full year. By meaningfully expanding our offerings and extending our reach across the globe, we believe we are on a path to scale our business and deliver profitable growth again in 2023.”

Key Operating Metrics:

The following metrics were calculated excluding paying users and revenue generated from Fruitz. Please refer to the Definitions section for more information.

Balance Sheet:

As of December 31, 2022, total cash and cash equivalents were $402.6 million and total debt was $625.0 million.

Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”

Financial results will not be final until Bumble files its Annual Report on Form 10-K for the period.

Financial Outlook:

A reconciliation of Adjusted EBITDA to GAAP net earnings (loss) and Adjusted EBITDA margin growth to GAAP net earnings (loss) margin growth which is growth in GAAP net earnings (loss) as a percentage of revenue has not been provided for the outlook included herein 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.

Bumble anticipates total revenue, adjusted EBITDA and adjusted EBITDA margin for the quarter ending March 31, 2023 and year ending December 31, 2023 to be:

First quarter 2023

• Total revenue in the range of $238 to $243 million.
• Bumble App revenue of $190 to $193 million.
• Adjusted EBITDA in the range of $53 to $56 million.

The revenue outlook for first quarter 2023 is based on the following considerations:

• An unfavorable impact of approximately $10 million of revenue from foreign currency movements as well as from the Ukraine conflict, due to the company's subsequent decision to remove all of its apps from the Apple App Store and Google Play Store in Russia and Belarus. This will predominantly impact Badoo App and Other revenue.

Full year 2023

• Total revenue year over year growth in the range of 16% to 19%.
• Bumble App year over year revenue growth in the range of 22% to 25%.
• Adjusted EBITDA margin growth of approximately 100 basis points.

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.

Revision of Previously Issued Financial Statements:

Certain prior period amounts included in this press release have been revised. As reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 (the “Q3 10-Q”), the Company identified certain prior period adjustments, including with respect to the recognition and presentation of debt issuance costs and refunds from third-party aggregators, for the 2020 annual financial statements, 2021 quarterly and annual financial statements and quarterly financial statements for the three months ended June 30, 2022 and March 31, 2022. These revisions were not material to the prior periods and do not affect the ongoing operations of the Company or adjusted EBITDA. A quantification of the impact of these adjustments on each financial statement line item was included in the Q3 10-Q.

Conference Call and Webcast Information

Bumble will host a live webcast of its conference call to discuss its fourth quarter and full year 2022 financial results at 4:30 p.m. Eastern Time today, February 22, 2023. A webcast of the call and other information related to the call will be accessible on the Investors section of the Company’s website at https://ir.bumble.com. A webcast replay will be available approximately two hours after the conclusion of the live event.

Definitions

Total Revenue is the sum of Bumble App Revenue and Badoo App and Other Revenue.

Total Paying Users is the sum of Bumble App Paying Users and Badoo App and Other Paying Users.

Total Average Revenue per Paying User is a metric calculated based on Total Revenue in any measurement period, excluding any revenue generated from Fruitz, advertising and partnerships or affiliates, divided by the Total Paying Users in such period divided by the number of months in the period.

Bumble App Revenue is revenue derived from purchases or renewals of a Bumble app subscription plan and/or in-app purchases on Bumble app in the relevant period.

Bumble App Paying User is a user that has purchased or renewed a Bumble app subscription plan and/or made an in-app purchase on 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.

Bumble App Average Revenue per Paying User is a metric 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.

Badoo App and Other revenue is revenue derived from purchases or renewals of a Badoo app subscription plan and/or in-app purchases on Badoo app in the relevant period, purchases on one of our other apps that we owned and operated in the relevant period, purchases on other third party apps that used our technology in the relevant period and advertising, partnerships or affiliates revenue in the relevant period.

Badoo App and Other Paying User is a user that has purchased or renewed a subscription plan and/or made an in-app purchase on Badoo app in a given month (excluding Fruitz) or made a purchase on one of our other apps that we owned and operated in a given month, or purchase on other third-party apps that used our technology in the relevant period). We calculate Badoo App and Other Paying Users as a monthly average, by counting the number of Badoo App and Other Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Badoo App and Other Average Revenue per Paying User is a metric calculated based on Badoo App and Other Revenue in any measurement period, excluding any revenue generated from Fruitz, advertising and partnerships or affiliates, divided by Badoo App and Other Paying Users in such period divided by the number of months in the period.

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 investments in equity securities, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business, tax receivable agreement liability remeasurement (benefit) expense and impairment loss, 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 investments in equity securities, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business, tax receivable agreement liability remeasurement (benefit) expense and impairment loss.

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 and our industry 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 or Google 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 sanctions and data privacy laws
• foreign currency exchange rate fluctuations
• risks relating to certain of our international operations, including geopolitical conditions and successful expansion into new markets
• the impact of current developments in Russia, Ukraine and surrounding countries on our business and users, including the impact of our decision to discontinue our operations in Russia and remove our apps from the Apple App Store and Google Play Store in Russia and Belarus
• 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 lower consumer confidence in our business or in the online dating industry generally, recessionary conditions, increased unemployment rates, stagnant or declining wages, changes in inflation or interest rates, political unrest, armed conflicts, natural disasters or the impact of the Coronavirus Disease 2019 (and other widespread health emergencies or pandemics) and measures taken in response

For additional information on these and other factors that could cause Bumble’s actual results to differ materially from expected results, please see our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2021 and our subsequent periodic filings, which are accessible on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Bumble

Bumble Inc. is the parent company of Bumble, Badoo, and Fruitz. The Bumble platform enables people to connect and build equitable and healthy relationships. Founded by CEO Whitney Wolfe Herd in 2014, Bumble was one of the first dating apps built with women at the center and connects people across dating (Bumble Date), friendship (Bumble BFF) and professional networking (Bumble Bizz). Badoo, which was founded in 2006, is one of the pioneers of web and mobile dating products. Fruitz, founded in 2017, encourages open and honest communication of dating intentions through playful fruit metaphors. For more information about Bumble, please visit www.bumble.com and follow @Bumble on social platforms.

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Source: Bumble Inc.