AUSTIN - Bumble Inc. (NASDAQ: BMBL) shares jumped as much as 11.6% following the company's release of its first quarter financial results, which surpassed Wall Street expectations.
The company reported adjusted earnings per share (EPS) of $0.19, significantly higher than analyst estimates of $0.06. Revenue also exceeded forecasts, coming in at $268 million compared to the consensus estimate of $265.53 million.
The company's total revenue saw a 10% increase to $267.8 million, up from $242.9 million in the same quarter last year. This growth was driven by an 11% rise in Bumble App revenue to $215.8 million and a 6.9% increase in Badoo App and Other Revenue, which reached $52.0 million. The Bumble App also experienced an 18% surge in paying users, now totaling 2.7 million.
Bumble's CEO, Lidiane Jones, attributed the strong quarter to the company's focus on enhancing user experiences and introducing innovations that align with its mission. The company's CFO, Anu Subramanian, highlighted the execution of strategic priorities and a transformation that has led to increased agility and momentum for Bumble.
Looking ahead, Bumble provided guidance for the second quarter of 2024, with total revenue projected to be between $269 million and $275 million, which is below the analyst consensus of $278.6 million. However, the company anticipates year-over-year revenue growth of 8% to 11% for the full year 2024, along with a 9% to 11% increase in Bumble App revenue and at least a 300 basis point growth in adjusted EBITDA margin.
The company's share repurchase program also saw a significant boost, with an increase from $300 million to $450 million, further indicating a strong cash position and commitment to shareholder returns.
Stifel analysts said the strong after-earnings move "is a testament to just how negative sentiment has become on the category."
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