Bumble stock jumps on revenue beat, earnings miss

Yahoo Finance’s Allie Canal joins Yahoo Finance Live to break down dating app Bumble’s fourth-quarter earnings report.

影片文字轉錄稿

DAVE BRIGGS: Meanwhile, shares of Bumble, let's see what they're doing after-hours after they report Q4, up about 5%. Do we see the earnings beat continue? Allie Canal here with the answer.

ALLIE CANAL: Yeah, so actually Bumble reporting pretty strong results here. And this is a good thing, considering what we saw from Match Group. Match Group missing on that revenue, which sent shares to the downside. But now we have Bumble shares moving higher today, up about 5%. Revenue coming in at 241.6 million versus estimates of 235.83 million. There was an adjusted loss per share of $0.85. So that is something that was also a slight miss there.

But a key metric here-- total paying users, that includes both the Bumble side, along with the Badoo app and others. The Q4 estimate was $3.4 million. The actual results came in at 3.41 million, so roughly in line with those estimates there. And if we break that down even further, 2.2 million on the Bumble side, 1.2 million on the Badoo app and other paying user side. And then finally, if we take a look at average revenue per user, that came in at $23.01, versus estimates of $22.54, so another beat there.

And for the forecast for Q1 2023, the company says it expects revenue between 238 million to 243 million. The estimate was 241.4 million, so right in the middle there. That seems to be encouraging to investors. We did hear from founder and CEO Whitney Wolfe Herd in the press release.

She wrote, quote, "We achieved strong results in 2022 by advancing our powerful products, technology, and mission to create kind connections. By delivering unique and engaging product experience built upon a foundation of trust and safety, our team is realizing the tremendous potential of our brands." So some really big words there. It'll be interesting to see what they say on the earnings call when it comes to the future of this company and really online dating as a whole.

SEANA SMITH: Yeah, it certainly will be. Some of those growth numbers there that you did mention, the paying users, that was up 14% year over year when it comes to Bumble here, 3.41 million overall. That is up when it comes to the Bumble app specifically. The growth that they saw there was 35% growth year over year, certainly something significant here for the company expanding in what has been a very, very uncertain time for the economy.

The revenue growth, Allie, that you mentioned was up 16% on a year over year basis. Lots of questions, though, about whether or not some of these types of companies, consumer facing companies, ones that are more discretionary spending, whether or not they are going to be able to hold up OK during the potential recession. That, of course, is up for debate. But the Street extremely happy with what we are seeing from these results, with the stock up just about 7 and 1/2%.