Bumble (BMBL) Q2 2024 earnings summary

Executive summary

• Leadership is executing a comprehensive reset focused on long-term growth, profitability, and customer-centric innovation, emphasizing ecosystem health, product experience, and revenue strategy.

• Q2 2024 total revenue reached $268.6 million, up 3.4% year-over-year, driven by a 14% increase in paying users to 4.1 million, with Bumble App revenue up 4.8% to $218.0 million and Badoo App and Other revenue down 2.2% to $50.6 million.

• Net earnings for Q2 2024 were $37.7 million (14.0% margin), up from $9.3 million (3.6% margin) in Q2 2023, aided by lower operating costs and reduced stock-based compensation.

• Adjusted EBITDA for Q2 2024 was $75.0 million (27.9% margin), up from $67.3 million (25.9% margin) in Q2 2023.

• April's Bumble App relaunch improved engagement and profile quality, especially for women, but highlighted the need for deeper changes to address demographic and intent imbalances and to enhance monetization.

Financial highlights

• Q2 2024 revenue grew 3% year-over-year to $268.6 million, with FX headwinds reducing growth by 1.5 percentage points.

• Total paying users increased 14% to 4.1 million, but ARPPU declined 8% to $21.37 due to geographic mix shift.

• Bumble App revenue rose 4.8% to $218.0 million, driven by a 15% increase in paying users to 2.8 million; Badoo and other revenue declined 2.2% to $50.6 million.

• Cost of revenue was $80 million (30% of revenue), up 6% year-over-year, mainly due to higher in-app purchase fees and cloud costs.

• Adjusted EBITDA margin improved to 27.9% in Q2 2024 from 25.9% in Q2 2023.

Outlook and guidance

• Q3 2024 revenue expected between $269 million and $275 million; Bumble App revenue between $217 million and $221 million; Adjusted EBITDA projected at $77 million–$80 million.

• Full-year 2024 revenue growth forecasted at 1–2%, with Bumble App revenue growth at 1.5–2.5% and full-year net adds of 275,000–285,000.

• Adjusted EBITDA margin for 2024 expected to expand by at least 200 basis points year-over-year.

• Negative net adds anticipated in Q4, attributed to seasonality and strategic actions.

• Management expects the Restructuring Plan to be completed in Q3 2024, with total non-recurring charges of $20–22 million.