Bumble (BMBL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 3.4% year-over-year to $268.6 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, driven by a 14% increase in total paying users to 4.1 million, but offset by a decline in ARPPU and FX headwinds.

• Net earnings rose to $37.7 million (14.0% margin), up from $9.3 million (3.6% margin) a year ago; Adjusted EBITDA increased to $75.0 million (27.9% margin), up from $67.3 million (25.9% margin) in Q2 2023.

• Strategic reset focused on ecosystem health, customer experience, and long-term growth, with new features, onboarding improvements, and a renewed emphasis on value for women and engagement across all user segments.

• Acquisition of Geneva, a community app, to accelerate expansion into non-romantic relationships and broaden the total addressable market.

• Workforce reduction of about 30% (~350 roles) earlier in the year, resulting in cost savings and improved operating leverage.

Financial highlights

• Q2 2024 total revenue was $268.6 million, up 3% year-over-year; Bumble App revenue was $218.0 million, up 4.8%, and Badoo App and Other revenue was $50.6 million, down 2.2%.

• Total paying users increased 14% to 4.1 million, with Bumble App paying users up 15% to 2.8 million and Badoo App & Other paying users up 12% to 1.3 million.

• ARPPU declined to $21.37, down 8–9% year-over-year; Bumble App ARPPU was $21.37, and Badoo App ARPPU was $11.93.

• GAAP operating costs fell 9% to $217 million; general and administrative expense dropped 16.1% to $36.3 million, and product development expense dropped 56.7% to $15.7 million.

• Cash and cash equivalents at quarter end were $286.7 million; total debt was $618.9 million.

Outlook and guidance

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

• Full-year 2024 total revenue growth expected between 1% and 2%; Bumble App revenue growth between 1.5% and 2.5%.

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

• Negative net adds expected in Q4, primarily due 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.