Financial Data and Key Metrics Changes - Bumble's Q2 revenue was $248 million, with a year-to-date total of $495 million, reflecting a favorable foreign exchange impact of approximately $2 million [24] - The company reported a GAAP net loss of $367 million, primarily due to an impairment loss of $405 million, while non-GAAP operating expenses were $154 million, a year-over-year decline of approximately 21% [25][26] - Adjusted EBITDA for Q2 was $95 million, representing 38% of revenue, with strong cash flow of $71 million in Q2 and $262 million in cash and cash equivalents at the end of the quarter [26][27] Business Line Data and Key Metrics Changes - Total paying users in Q2 were 3.8 million, with Bumble app paying users at 2.5 million, while the Vadu app and other revenue totaled $47 million [24] - The full-price payer base increased quarter over quarter, now representing approximately 80% of total payers, up from 70% in Q1, indicating a shift towards sustainable subscriptions [6][24] Market Data and Key Metrics Changes - The company has seen improvements in retention and organic registrations, particularly among women and Gen Z demographics, holding the highest favorability among scaled dating apps in the U.S. [19] - Bumble BFF is recognized as a top friend-finding app in the U.S., especially among Gen Z and younger millennial women, highlighting a growing demand for friendship and community [15][56] Company Strategy and Development Direction - The company has reset its strategy to prioritize quality over quantity, streamlining operations and removing over $100 million from its cost base [4][5] - The Beehive Fit framework is being implemented to enhance member quality, focusing on improving profiles and engagement to drive better monetization [8][12] - Future product updates will include trust and safety features, such as phone and ID verification, aimed at creating a safer environment for high-intent users [14][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the focus on quality has weighed on revenue and payer count but is expected to drive sustainable growth in the long term [23][32] - The company anticipates a decrease in revenue for Q3, with guidance of $240 million to $248 million, reflecting the impact of trust and safety initiatives [29][30] - Management remains optimistic about the long-term trajectory, emphasizing the importance of member experience and quality interactions [32] Other Important Information - The company has appointed Kevin Cook as the new CFO, who is expected to bring a technology-first approach to finance and product development [20][84] - The company is being selective with talent investments, focusing on high-performing teams and prioritizing roles that align with its quality strategy [21][28] Q&A Session Summary Question: Update on alternative payment options - Management reported a 30% adoption rate for direct billing tests on iOS, with ongoing evaluations of discount rates [34][35] Question: Growth drivers for Bumble app - The growth was influenced by the exit from a promotional strategy, with deliberate changes in monetization contributing to ARPPU growth [38][39] Question: Size of user categories (approve, improve, remove) - The "improve" category constitutes the majority of the member base, while "remove" accounts for under 10%, indicating a focus on enhancing member profiles [41][42] Question: Metrics for tracking quality improvements - Management is focused on tracking deeper member inputs and signals that lead to successful interactions, although specific metrics are not currently disclosed [45][46] Question: Timing of reinvestments - Reinvestments will be made selectively, with some occurring in the near term and others deferred for strategic marketing around product launches [47][48] Question: Key priorities for the next 12-18 months - The main priorities include product and technology enhancements, particularly in trust and safety, and expanding Bumble for Friends to meet Gen Z demands [52][56] Question: Addressing Gen Z's needs in online dating - The strategy focuses on solving key pain points for Gen Z, emphasizing trust, safety, and meaningful connections [78][80]

Financial Performance - Total revenue decreased by 8% year-over-year to $248.2 million in Q2 2025[25] - Bumble App revenue decreased by 8% year-over-year to $201.4 million in Q2 2025[25] - The company reported a net loss of $367 million in Q2 2025[25] - Adjusted EBITDA increased by 26% year-over-year to $94.6 million in Q2 2025, with an Adjusted EBITDA margin of 38.1%[25, 48] User Metrics - Total paying users decreased by 9% year-over-year to 3.8 million in Q2 2025[25] - Bumble App paying users decreased by 11% year-over-year to 2.5 million in Q2 2025[25] - Total Average Revenue per Paying User (ARPPU) increased by 1% year-over-year to $21.69 in Q2 2025[25] - Badoo App and Other paying users decreased by 3% year-over-year[36] Future Outlook - The company expects total revenue of $240-$248 million for Q3 2025[44] - Bumble App revenue is projected to be $194-$200 million for Q3 2025[44] - Adjusted EBITDA is expected to be $79-$84 million for Q3 2025[44]

[Second Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized a strategic shift towards attracting higher quality members, streamlining costs, and accelerating AI and product innovation to build a durable foundation - CEO Whitney Wolfe Herd stated the company is executing a clear framework to strengthen its member base with higher quality members and has significantly streamlined its cost structure[2](index=2&type=chunk) - Interim CFO Ron Fior highlighted that the company exceeded its Adjusted EBITDA guidance by reducing costs and realigning marketing strategy, which improved operational efficiency and allows for reinvestment in brand, trust, and product innovation[4](index=4&type=chunk) [Key Financial Results](index=1&type=section&id=Key%20Financial%20Results) Total revenue decreased by 7.6% to $248.2 million, resulting in a $367.0 million net loss due to impairment, while Adjusted EBITDA significantly increased to $94.6 million Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $248.2M | $268.6M | -7.6% | | Bumble App Revenue | $201.4M | $218.0M | -7.6% | | Badoo App & Other Revenue | $46.8M | $50.6M | -7.5% | | **Net Earnings (Loss)** | ($367.0M) | $37.7M | N/A | | **Adjusted EBITDA** | $94.6M | $75.0M | +26.1% | | Adjusted EBITDA Margin | 38.1% | 27.9% | +10.2 p.p. | - The company recorded a significant net loss of **$367.0 million**, which included **$404.9 million** of non-cash impairment charges[6](index=6&type=chunk) [Key Operating Metrics](index=1&type=section&id=Key%20Operating%20Metrics) Total Paying Users declined by 8.7% to 3.8 million, while Total Average Revenue per Paying User (ARPPU) slightly increased to $21.69 Q2 2025 Key Operating Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Paying Users** | 3.8M | 4.1M | -8.7% | | Bumble App Paying Users | 2.5M | 2.8M | -11.3% | | Badoo App & Other Paying Users | 1.3M | 1.3M | -3.3% | | **Total ARPPU** | $21.69 | $21.37 | +1.5% | | Bumble App ARPPU | $26.85 | $25.79 | +4.1% | | Badoo App & Other ARPPU | $11.57 | $11.93 | -3.0% | [Balance Sheet and Impairment](index=2&type=section&id=Balance%20Sheet%20and%20Impairment) As of June 30, 2025, the company held $261.7 million in cash and $615.2 million in debt, recognizing a $398.1 million non-cash impairment charge - As of June 30, 2025, the company had total cash and cash equivalents of **$261.7 million** and total debt of **$615.2 million**[7](index=7&type=chunk) - The company recognized non-cash impairment charges of **$398.1 million** in Q2 2025 following an interim impairment test prompted by a revised outlook and strategic shift[7](index=7&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) [Third Quarter 2025 Outlook](index=2&type=section&id=Third%20Quarter%202025%20Outlook) For Q3 2025, total revenue is anticipated to be $240 million to $248 million, with Adjusted EBITDA projected between $79 million and $84 million Q3 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | **Total Revenue** | $240M - $248M | | Bumble App Revenue | $194M - $200M | | **Adjusted EBITDA** | $79M - $84M | - The company has not provided a reconciliation of its Adjusted EBITDA outlook to GAAP net earnings due to the inability to predict certain items like stock-based compensation expense without unreasonable efforts[8](index=8&type=chunk) [Corporate Developments](index=2&type=section&id=Corporate%20Developments) [CFO Transition](index=2&type=section&id=CFO%20Transition) Bumble Inc. announced a Chief Financial Officer transition effective August 12, 2025 - The company announced a Chief Financial Officer transition effective August 12, 2025[10](index=10&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $2.16 billion, total liabilities slightly decreased to $1.16 billion, and total shareholders' equity decreased to $1.00 billion Balance Sheet Summary (as of June 30, 2025 vs. Dec 31, 2024) | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $261,739 | $204,319 | | Goodwill | $1,129,007 | $1,386,229 | | Intangible assets, net | $588,867 | $748,906 | | **Total Assets** | **$2,161,495** | **$2,524,887** | | Long-term debt, net | $609,418 | $611,346 | | **Total Liabilities** | **$1,157,002** | **$1,175,833** | | **Total Shareholders' Equity** | **$1,004,493** | **$1,349,054** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, revenue was $248.2 million, with a $404.9 million impairment loss leading to a $367.0 million net loss, contrasting with Q2 2024 net earnings Statement of Operations Summary (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $248,229 | $268,615 | | Total operating costs and expenses | $586,572 | $216,661 | | Impairment loss | $404,855 | $0 | | Operating earnings (loss) | ($338,343) | $51,954 | | **Net earnings (loss)** | **($366,983)** | **$37,686** | | Diluted earnings (loss) per share | ($2.45) | $0.22 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly improved to $114.5 million, while investing and financing activities used $5.9 million and $51.4 million respectively Cash Flow Summary (Six Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $114,481 | $35,345 | | Net cash used in investing activities | ($5,920) | ($4,531) | | Net cash used in financing activities | ($51,404) | ($101,003) | | **Net increase (decrease) in cash** | **$58,631** | **($68,972)** | [Non-GAAP Financial Measures & Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Reconciliation of Net Earnings to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Adjusted%20EBITDA) In Q2 2025, a GAAP Net Loss of $367.0 million was reconciled to an Adjusted EBITDA of $94.6 million, primarily adjusted for a $404.9 million impairment loss Q2 2025 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Amount | | :--- | :--- | | **Net loss** | **($366,983)** | | Impairment loss | $404,855 | | Restructuring costs | $12,178 | | Foreign exchange loss | $12,037 | | Interest and derivative losses, net | $10,259 | | Depreciation and amortization | $6,631 | | Stock-based compensation | $5,849 | | Other adjustments | $1,850 | | **Adjusted EBITDA** | **$94,586** | [Reconciliation of Operating Cash Flow to Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Operating%20Cash%20Flow%20to%20Free%20Cash%20Flow) For Q2 2025, operating cash flow was $71.2 million, leading to a Free Cash Flow of $67.7 million after capital expenditures, a significant increase from Q2 2024 Q2 2025 Free Cash Flow Calculation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71,236 | $32,925 | | Less: Capital expenditures | ($3,509) | ($1,730) | | **Free cash flow** | **$67,727** | **$31,195** | | Free cash flow conversion | 71.6% | 41.6% | [Supplementary Information](index=11&type=section&id=Supplementary%20Information) This section details non-GAAP adjustments, including total stock-based compensation expense of $5.8 million and reconciliations of GAAP to non-GAAP operating costs - Total stock-based compensation expense was **$5.8 million** for the three months ended June 30, 2025, primarily allocated to General & Administrative (**$3.5M**) and Product Development (**$1.6M**) expenses[44](index=44&type=chunk) - After removing non-recurring and non-cash items, total non-GAAP operating costs and expenses for Q2 2025 were **$153.8 million**, a decrease from **$193.6 million** in Q2 2024[46](index=46&type=chunk)

Core Viewpoint - Bumble Inc. is expected to report a quarterly earnings per share (EPS) of $0.37, marking a 68.2% increase year-over-year, while revenues are projected to decline by 9.1% to $244.24 million [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 2.4% over the last 30 days, indicating a reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenue- Badoo App and Other' to be $44.35 million, reflecting a year-over-year decrease of 12.4% [5]. - The 'Revenue- Bumble App' is projected at $195.45 million, indicating a decline of 10.3% from the previous year [5]. User Metrics - 'Badoo App and Other Paying Users' are expected to reach 1.28 million, down from 1.32 million in the same quarter last year [5]. - 'Bumble App Paying Users' are forecasted to be 2.63 million, compared to 2.82 million a year ago [6]. - The total number of 'Total Paying Users' is estimated at 3.90 million, down from 4.14 million in the previous year [8]. Average Revenue per User - 'Total Average Revenue per Paying User' is expected to be $20.36, down from $21.37 in the same quarter last year [6]. - 'Badoo App and Other Average Revenue per Paying User' is projected at $10.83, compared to $11.93 a year ago [7]. - 'Bumble App Average Revenue per Paying User' is estimated to be $24.85, down from $25.79 in the same quarter last year [7]. Market Performance - Bumble shares have increased by 16.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a 0.6% increase [8].

Company Performance - Bumble Inc. closed at $8.22, reflecting a -4.08% change from the previous day, underperforming the S&P 500's gain of 0.4% [1] - Over the past month, Bumble's shares have increased by 31.64%, significantly outperforming the Computer and Technology sector's gain of 6.84% and the S&P 500's gain of 4.61% [1] Upcoming Earnings - The company is set to release its earnings report on August 6, 2025, with an expected EPS of $0.37, indicating a 68.18% increase year-over-year [2] - Revenue is projected at $243.29 million, which represents a 9.43% decline compared to the same quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates forecast full-year earnings of $1.05 per share and revenue of $962.36 million, reflecting year-over-year changes of +122.78% for earnings and -10.2% for revenue [3] - Recent adjustments to analyst estimates suggest evolving short-term business trends, with positive revisions indicating analyst optimism [3] Stock Performance Metrics - The Zacks Rank system, which evaluates estimate changes, currently rates Bumble Inc. as 1 (Strong Buy), with a historical average annual return of +25% for stocks rated 1 since 1988 [5] - The Zacks Consensus EPS estimate has increased by 8.23% in the past month [5] Valuation Metrics - Bumble Inc. has a Forward P/E ratio of 8.2, which is significantly lower than the industry average Forward P/E of 29.31 [6] - The company also has a PEG ratio of 0.29, compared to the Internet - Software industry's average PEG ratio of 2.19 [6] Industry Context - The Internet - Software industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 79, placing it in the top 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Overview - Bumble Inc. (BMBL) shares increased by 9.2% to close at $8.4, with a notable trading volume, and have gained 47.6% over the past four weeks [1] - The company is focusing on enhancing its platform for sustained growth by eliminating bots and scammers, and modernizing its matching algorithm using AI [1] Earnings Expectations - Bumble is projected to report quarterly earnings of $0.37 per share, reflecting a year-over-year increase of 68.2%, while revenues are expected to be $243.29 million, a decrease of 9.4% from the previous year [2] - The consensus EPS estimate for Bumble has been revised 0.6% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [3] Industry Context - Bumble operates within the Zacks Internet - Software industry, which includes other companies like Informatica Inc. (INFA) [3] - Informatica's consensus EPS estimate remains unchanged at $0.21, representing an 8.7% decline from the previous year, and it currently holds a Zacks Rank of 3 (Hold) [4]

Core Insights - Bumble Inc. (BMBL) is currently viewed as a more attractive investment compared to F5 Networks (FFIV) for value investors due to its stronger Zacks Rank and favorable valuation metrics [1][3][6] Valuation Metrics - BMBL has a forward P/E ratio of 6.83, significantly lower than FFIV's forward P/E of 20.73, indicating that BMBL may be undervalued [5] - The PEG ratio for BMBL is 0.24, while FFIV's PEG ratio is 3.01, suggesting that BMBL has a better growth-to-price ratio [5] - BMBL's P/B ratio stands at 0.54, compared to FFIV's P/B of 5.24, further highlighting BMBL's relative undervaluation [6] Zacks Rank and Style Scores - BMBL holds a Zacks Rank of 1 (Strong Buy), while FFIV has a Zacks Rank of 3 (Hold), indicating a more favorable earnings estimate revision trend for BMBL [3] - In terms of Value grades, BMBL receives an A, whereas FFIV is rated D, reinforcing the notion that BMBL is the better option for value investors [6]

Core Viewpoint - Bumble Inc. is experiencing significant stock performance and is expected to report strong earnings growth, despite a slight decline in revenue compared to the previous year [2][3]. Group 1: Stock Performance - Bumble Inc. closed at $6.68, reflecting a +2.45% increase from the previous day, outperforming the S&P 500's gain of 0.14% [1] - Over the past month, Bumble's shares have gained 31.72%, significantly surpassing the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97% [1] Group 2: Earnings Expectations - The upcoming earnings disclosure is anticipated to show an EPS of $0.36, representing a 63.64% increase year-over-year [2] - The consensus estimate for revenue is $242.08 million, indicating a 9.88% decrease from the same quarter last year [2] Group 3: Full-Year Estimates - Full-year Zacks Consensus Estimates project earnings of $1.04 per share and revenue of $960.68 million, reflecting year-over-year changes of +122.56% for earnings and -10.35% for revenue [3] - Recent changes in analyst estimates for Bumble Inc. suggest positive sentiment regarding the company's business and profitability [3] Group 4: Valuation Metrics - Bumble Inc. is currently trading at a Forward P/E ratio of 6.3, compared to the industry average of 27.71, indicating a potential discount [6] - The company's PEG ratio stands at 0.22, significantly lower than the Internet - Software industry's average PEG ratio of 2.15 [7] Group 5: Zacks Rank and Industry Performance - Bumble Inc. holds a Zacks Rank of 1 (Strong Buy), with a historical average annual return of +25% for stocks rated 1 since 1988 [5] - The Internet - Software industry, to which Bumble belongs, has a Zacks Industry Rank of 65, placing it in the top 27% of over 250 industries [7][8]

Core Viewpoint - Bumble Inc. (BMBL) is currently considered a more attractive option for value investors compared to Adyen N.V. Unsponsored ADR (ADYEY) based on various valuation metrics [1][7]. Valuation Metrics - Both BMBL and ADYEY have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - BMBL has a forward P/E ratio of 6.40, significantly lower than ADYEY's forward P/E of 45.03, suggesting BMBL is undervalued [5]. - The PEG ratio for BMBL is 0.22, indicating strong expected earnings growth relative to its price, while ADYEY has a PEG ratio of 2.25, suggesting it may be overvalued [5]. - BMBL's P/B ratio is 0.51, which is much lower than ADYEY's P/B of 14.52, further indicating BMBL's undervaluation [6]. - Based on these metrics, BMBL holds a Value grade of A, while ADYEY has a Value grade of F, reinforcing the conclusion that BMBL is the superior value option [6].

Core Viewpoint - Recent legal challenges for Apple Inc. regarding alleged monopolistic practices and new App Store fee policies may positively impact subscription service companies like Duolingo, Match Group, and Bumble by reducing app store fees, which are a significant cost of revenue [1][2]. Financial Outlook - A reduction in app store fees could enhance earnings for Duolingo, Match Group, and Bumble, as these fees currently account for 17% of Duolingo's cost of revenues and 20% for both Match Group and Bumble [2][3]. - A 500 basis-point shift in subscription revenue to off-app payments could increase Duolingo's EBITDA by 3.3%, Match's by 2.8%, and Bumble's by 3.0%. Additionally, a 100 basis-point reduction in app store fees could raise their EBITDA by 3.2%, 2.7%, and 3.5%, respectively [4]. Price Forecast Adjustments - Price forecasts have been raised for Bumble to $5.50 from $5.25 and for Match Group to $34 from $32, while Duolingo's price forecast remains at $450 due to higher sector valuation [5]. Revenue Impact - The anticipated fee reduction is expected to result in a 1-2% increase in U.S.-based revenues for these companies, while the impact on EU-based revenues is estimated to be smaller, leading to only a 0.5% EBITDA increase [6]. Company-Specific Insights - Bumble is projected to benefit the most from a potential drop in U.S. app fees, supported by recent legal developments that allow developers to direct users to off-app payment options [7]. - Bumble, Duolingo, and Match are already testing off-app payments, with expectations for updates during the second-quarter earnings in August. A 500 basis-point shift to off-app payments and a 100 basis-point cut in U.S. app fees could boost Bumble's total EBITDA by 1.7% [8]. - Duolingo, Match, and Bumble derive only about 20% of their subscription revenue from the EU, limiting their earnings upside from EU app fee reductions due to DMA compliance [9].