Bumble, the parent of the dating app where women make the first move, reported financial results which missed revenue and earnings estimates.
The Austin Texas headquartered company, which includes apps Badoo, Fruitz, and Bumble, grew revenues 25.7% YoY to $208.2 million thanks to a 42.2% increase in the Bumble app revenue. This was partially offset by a 3.5% decline in the Badoo App and other revenue.
EBITDA rose 24.1% YoY to $54.8 million, with the adjusted EBITDA margin slightly lower at 26.3%.
The matchmaker reported a loss per share of $0.08 from a loss of $0.01 per share in the same quarter a year ago as increased costs and expenses more than offset higher revenues.
Bumble saw paying customers increase 10.6% to 3.0 million users, with the Average Revenue Per User (ARPU) increasing 14.03% to $22.83.
The company announced that it would discontinue its operations in Russia, Ukraine and Belarus (2.8% of total annual revenue in 2021). It expects to lose $2 million in Q1 2022 and $20 million for the full-year 2022 as a result.
At the end of the fourth quarter, Bumble had increased cash and cash equivalents by 188.4% YoY to $369.2 million. Meanwhile, long-term debt was 24.4% lower YoY to $620.4 million. Free cash flow, cash flow from operations ex-capex, for 2021 amounted to $91.2 million.
Bumble expects the Bumble App to grow revenues 34% to 36% YoY in 2022, with Q1 2022 revenue anticipated to be between $207 and $210 million. It is also forecasting an EBITDA margin expansion to 27% for FY 2022.
Analysts have a moderate buy recommendation on the stock. Jefferies has a target price on Bumble of $36, or 55% upside to the current price.