Financial Performance - Total revenue for Q3 2025 was $246.2 million, a decrease of 10.1% from $273.6 million in Q3 2024[161] - Bumble App revenue was $198.8 million, down 9.7% from $220.2 million in the same period last year[161] - Net earnings for Q3 2025 were $51.6 million, representing 21.0% of revenue, compared to a net loss of $849.3 million in Q3 2024[161] - Adjusted EBITDA for Q3 2025 was $83.1 million, with an Adjusted EBITDA margin of 33.7%, compared to $82.6 million and 30.2% in Q3 2024[161] - Total Revenue for the three months ended September 30, 2025, was $246.2 million, a decrease of 10.1% from $273.6 million in the same period in 2024, primarily due to a decline in Total Paying Users[202] - Total Revenue for the nine months ended September 30, 2025, was $741.5 million, a decrease of 8.5% from $810.0 million in the same period in 2024, primarily driven by a decline in Total Paying Users[205] User Metrics - Total paying users decreased to 3.57 million in Q3 2025 from 4.26 million in Q3 2024, a decline of 16.0%[164] - Average revenue per paying user for Bumble App increased to $28.27 in Q3 2025 from $25.58 in Q3 2024, a rise of 6.6%[164] - Bumble App Revenue decreased to $198.8 million for the three months ended September 30, 2025, down 9.7% from $220.2 million in the same period in 2024, driven by an 18.3% decline in Paying Users to 2.3 million[203] - Badoo App and Other Revenue was $47.4 million for the three months ended September 30, 2025, a decrease of 11.2% from $53.4 million in the same period in 2024, attributed to a 11.2% decline in Paying Users to 1.2 million[204] Cost Management - The total operating costs and expenses for the three months ended September 30, 2025, were $182.5 million, compared to $1.1 billion in the same period of 2024, indicating a significant reduction in costs[200] - Cost of revenue for the three months ended September 30, 2025, was $69.2 million, a decrease of 13.0% from $79.6 million in the same period in 2024, resulting in a cost of revenue percentage of 28.1%[208] - Selling and marketing expenses for the three months ended September 30, 2025, were $32.8 million, representing 13.3% of total revenue, down from 23.2% in the same period of 2024[200] - Selling and marketing expense for the three months ended September 30, 2025, was $32.8 million, a significant decrease of 48.4% from $63.5 million in the same period in 2024, primarily due to reduced marketing costs[210] - General and administrative expense increased to $46.3 million for the three months ended September 30, 2025, up 39.2% from $33.3 million in the same period in 2024, mainly due to $12.6 million of indirect taxes recorded[213] - Product development expense for the three months ended September 30, 2025, was $29.6 million, an increase of 19.0% from $24.9 million in the same period in 2024, driven by higher stock-based compensation[216] - Depreciation and amortization expense decreased to $4.6 million for the three months ended September 30, 2025, down 74.7% from $18.3 million in the same period in 2024, primarily due to the full amortization of developed technology[218] Restructuring and Workforce Changes - The company announced a restructuring plan in June 2025, reducing its global workforce by approximately 240 roles, which is about 30% of its employees, with expected non-recurring charges of $13.0 million to $18.0 million[183] - The company incurred approximately $20.4 million in total non-recurring charges related to the 2024 restructuring plan, which involved reducing the workforce by approximately 350 roles[185] - The company incurred approximately $13.0 million to $18.0 million in non-recurring charges due to a workforce reduction of about 240 roles, or 30% of its employees[239] Cash Flow and Capital Management - Free cash flow for the nine months ended September 30, 2025, was $182.4 million, a significant increase from $122.7 million in the same period of 2024, representing a conversion rate of 75.3% compared to 53.0%[235][241] - Net cash provided by operating activities increased to $191.3 million for the nine months ended September 30, 2025, up from $128.8 million in the prior year, despite a net loss of $(295.5) million[242] - The company had $307.9 million in cash and cash equivalents as of September 30, 2025, an increase of $103.6 million from December 31, 2024[236] - The company repurchased 4.7 million shares of Class A common stock for $28.7 million during the nine months ended September 30, 2025, with $50.1 million remaining available under the share repurchase program[237] - A voluntary principal payment of $25.0 million was made on the Incremental Term Loan in August 2025[238] - The company plans to make a one-time settlement payment of approximately $186.0 million to terminate its obligations under the Tax Receivable Agreement[240] - Total capital expenditures for the nine months ended September 30, 2025, were $8.9 million, compared to $6.2 million in the same period in 2024[243] - Net cash used in financing activities was $79.9 million for the nine months ended September 30, 2025, a decrease from $207.7 million in the prior year[244] Debt and Obligations - The company has a credit agreement with total borrowings of $850.0 million, consisting of a $575.0 million Original Term Loan and a $275.0 million Incremental Term Loan[245] - As of September 30, 2025, the outstanding balance under the Term Loans was $592.0 million, with amounts available under the Revolving Credit Facility at $50.0 million[248] - Total contractual obligations as of September 30, 2025, amounted to $622.6 million, with $22.7 million due within one year[249] - Estimated total future payments under the tax receivable agreement related to the Offering Transactions is $692.4 million as of September 30, 2025[249] Tax and Regulatory Matters - Income tax provision for the three months ended September 30, 2025 was $9.5 million, up from $4.2 million in 2024, and for the nine months it was $22.0 million compared to $16.3 million in 2024, mainly due to higher foreign taxes and stock-based award effects[224] - The enactment of the One Big Beautiful Bill Act on July 4, 2025 did not have a material impact on operating results for the three and nine months ended September 30, 2025[225] - The Pillar Two Minimum Tax, effective January 1, 2024, is being monitored for its potential impact on the company's financial position, with expectations to qualify for transitional safe harbor relief in most jurisdictions[226] Foreign Exchange and Interest Rate Exposure - Revenue outside of the United States accounted for 56.8% of consolidated revenue for the three months ended September 30, 2025, compared to 52.9% for the same period in 2024[252] - A hypothetical 10% change in the British Pound and Euro relative to the U.S. Dollar would have changed revenue by $18.8 million for the nine months ended September 30, 2025[253] - The notional value of foreign exchange forward contracts as of September 30, 2025, was $57.7 million[254] - A hypothetical interest rate increase of 1% would have increased interest expense by $0.7 million for the three months ended September 30, 2025[256] - The company entered into new interest rate swaps for a total notional amount of $350.0 million, fixing the variable interest rate at 3.18%[257] - The average Euro versus the U.S. Dollar exchange rate was 7.9% higher for the three months ended September 30, 2025, compared to the same period in 2024[252] Non-GAAP Financial Measures - Adjusted EBITDA is reported to provide visibility into underlying operating performance by excluding certain expenses, including income tax provision and stock-based compensation[228] - Free cash flow and free cash flow conversion are used to evaluate liquidity and debt-service capabilities, providing insights into cash generated from operating activities compared to capital expenditures[229] - Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by revenue, offering a measure of operational efficiency[229] - Limitations of non-GAAP financial measures include not reflecting cash requirements for servicing debt and not being a liquidity measure[230]

Core Insights - Bumble Inc. (BMBL) is currently viewed as a more attractive investment compared to Autodesk (ADSK) for those seeking undervalued stocks [1][3] Valuation Metrics - BMBL has a forward P/E ratio of 3.36, significantly lower than ADSK's forward P/E of 29.72 [5] - The PEG ratio for BMBL is 0.10, indicating strong expected earnings growth, while ADSK's PEG ratio is 1.82 [5] - BMBL's P/B ratio stands at 0.44, contrasting sharply with ADSK's P/B ratio of 23.13 [6] Investment Ratings - BMBL holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to ADSK, which has a Zacks Rank of 3 (Hold) [3][6] - Based on valuation figures and earnings outlook, BMBL is rated with a Value grade of A, while ADSK has a Value grade of D [6]

Market Overview - Market sentiment has turned cautious following the announcement of 153,074 job cuts in October, the highest for that month since 2003, raising concerns about the labor market's strength [1][22] - The Nasdaq dropped 1.9%, the S&P 500 lost 1.1%, and the Dow Jones Industrial Average slipped 0.8%, indicating a pullback from tech-heavy positions amid concerns over AI valuations and weak job data [22] - Treasury yields softened, with the 10-year yield falling to 4.09% from 4.16%, and the US dollar index weakened by 0.5% to 99.69, reflecting fading confidence in the currency [1][11] Company Performance - Tesla (TSLA) stock fell 3.5% ahead of a crucial shareholder vote on CEO Elon Musk's pay package and governance proposals, with results expected soon [3][13] - Datadog (DDOG) shares surged 23% after reporting Q3 earnings per share of $0.55, exceeding analyst estimates, and a revenue increase of 28% year-over-year to $885.7 million, driven by AI-related customer growth [4][14][15] - Bumble (BMBL) shares plummeted 25% following a 16% decline in total paying users to 3.57 million and a 10% drop in revenue to $246.2 million, with management warning of weak Q4 projections [6][16][17] Earnings Season Insights - Companies missing earnings expectations have seen their stocks decline by an average of 5% around earnings days, nearly double the five-year average of 2.6% [7][23] - Firms that beat forecasts gained only 0.1%, significantly below historical norms, indicating investor fatigue after months of elevated valuations [7][18] Policy and Economic Developments - President Trump announced a plan for Medicare to cover GLP-1 weight-loss drugs for as little as $50 a month, impacting companies like Novo Nordisk (NVO) and Eli Lilly (LLY) [8][20][19] - Rising inflation continues to pressure household budgets, with 45% of US workers lacking emergency savings and 67% living paycheck to paycheck, up four percentage points from 2024 [10][21][22]

Core Insights - Bumble's shares dropped 17.7% following a significant decline in paying users and weak guidance for the upcoming quarter [1] - The company reported third-quarter sales of $246.2 million, a 10% year-over-year decrease, which met Wall Street expectations [1] - A notable concern was the 16% drop in paying users, equating to a loss of approximately 680,600 users compared to the previous year [1] - Bumble's revenue forecast for the next quarter is $220 million at the midpoint, which is below analyst expectations [1] - The company also indicated lower-than-expected adjusted EBITDA, suggesting ongoing challenges [1] Market Reaction - Bumble's stock has shown high volatility, with 29 movements greater than 5% in the past year, indicating significant market impact from recent news [3] - The recent drop in Bumble's stock price is considered a rare and significant reaction, reflecting a shift in market perception [3] Broader Market Context - The overall market sentiment was positively influenced by strong quarterly results from tech giants like Amazon and Apple, which reported significant revenue growth [5] - Amazon's AWS division saw a 20% year-over-year revenue increase to $33 billion, driven by high demand for AI-related computing power [5] - Cloudflare reported a 30.7% year-over-year revenue increase to $562 million, with billings rising nearly 40%, indicating robust future growth [6] - Coinbase also exceeded estimates with $1.87 billion in revenue and an adjusted EPS of $1.44, supported by increased trading revenue and stablecoin adoption [6]

Core Insights - Bumble Inc. reported a revenue of $246.16 million for the quarter ended September 2025, reflecting a year-over-year decline of 10% [1] - The earnings per share (EPS) for the same period was $0.35, unchanged from the previous year, but below the consensus estimate of $0.38, resulting in an EPS surprise of -7.89% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $244.56 million by 0.66% [1] Financial Performance Metrics - Bumble's total paying users were reported at 3.57 million, below the average estimate of 3.69 million [4] - Bumble App paying users totaled 2.34 million, compared to the average estimate of 2.43 million [4] - Average revenue per paying user was $22.64, surpassing the estimated $21.90 [4] - Revenue from the Badoo App and other services was $47.4 million, slightly above the estimated $46.92 million, but represented an 11.2% decline year-over-year [4] - Revenue from the Bumble App was $198.8 million, closely aligning with the estimated $198.81 million, marking a 9.7% decrease from the previous year [4] Stock Performance - Bumble's shares have returned -9.6% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

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Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $246 million, a 10% decline year-over-year [22] - Bumble app revenue was $199 million, also down 10% year-over-year [23] - Adjusted EBITDA for the quarter was $83 million, up 1%, representing a margin of 34%, up from 30% in the year-ago period [24] - Net income was $52 million [24] - Cash flow from operations was $77 million compared to $93 million in the year-ago period [25] Business Line Data and Key Metrics Changes - Badoo app and other revenue declined 11% to $47 million [23] - Cost of revenue was $69 million, representing 28% of revenue, down approximately 1 percentage point year-over-year [24] - Sales and marketing expense was $32 million, down 50% year-over-year [24] Market Data and Key Metrics Changes - Member registrations are lower in the near term due to the focus on quality over quantity, but early indicators suggest that retention is improving [6][25] - The company is seeing a 4 percentage point improvement in brand awareness among single women in the U.S. aged 22 to 45 due to the "For the Love of Love" campaign [16] Company Strategy and Development Direction - The company is transforming into the "Love Company," expanding beyond dating to build a global platform for meaningful relationships [6] - The focus is on improving member experience and quality, with a commitment to trust and safety [19] - The company is implementing a "Be High Fit" framework to measure progress against goals of building a higher quality community [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the current transformation may create near-term headwinds but is designed for healthier growth and stronger monetization over time [18] - The outlook for Q4 anticipates continued attrition in active and paying members, but improvements in retention and average revenue per paying user are expected [25][26] - The company expects total revenue in Q4 to be in the range of $216 million to $224 million, representing a year-over-year decline of approximately 17% to 14% [26] Other Important Information - A transaction to purchase all parties' outstanding tax receivable agreement rights for approximately $186 million was agreed upon, simplifying the capital structure and improving future cash flows [27] - The company ended the quarter with $308 million in cash and equivalents [25] Q&A Session Summary Question: Vision for Bumble in 2-3 years - The company aims to solve women's pain points and enhance the member experience, focusing on delivering high-quality matches [29][30] Question: Timing and magnitude of revenue growth recovery - The company needs to complete the trust and safety efforts and expects to see improvements in paying user growth beginning in early 2026 [33][34] Question: Insights on improved members - The company is focused on helping improved members transition to approved members through better profile setups and engagement tools [38][39] Question: Standalone AI product vision - The standalone AI product will provide a unique dating experience and will also integrate learnings into the core Bumble experience [44][46] Question: Key drivers for upcoming product releases - The company is prioritizing customer service improvements and addressing member pain points as key drivers for future growth [50][51]

Financial Performance - Total revenue decreased by 10% year-over-year to $246.2 million in Q3 2025[23] - Bumble App revenue decreased by 10% year-over-year to $198.8 million in Q3 2025[23] - Total paying users decreased by 16% year-over-year to 3.6 million in Q3 2025[23] - Bumble App paying users decreased by 18% year-over-year to 2.3 million in Q3 2025[23] - Total Average Revenue per Paying User (ARPPU) increased by 7% year-over-year to $22.64 in Q3 2025[23] - Adjusted EBITDA increased by 1% year-over-year to $83.1 million in Q3 2025[23] User Metrics - Bumble App paying users decreased by 57,000 quarter-over-quarter in Q3 2025[30] - Bumble App Average Revenue per Paying User (ARPPU) increased to $28.27 in Q3 2025, an 11% year-over-year increase[30] - Badoo App and Other paying users decreased by 47,000 quarter-over-quarter in Q3 2025[35] - Badoo App and Other Average Revenue per Paying User (ARPPU) decreased by 1% year-over-year to $11.91 in Q3 2025[35] Financial Outlook - The company anticipates total revenue between $216 million and $224 million[43] - The company anticipates Bumble App revenue between $176 million and $182 million[43] - The company anticipates Adjusted EBITDA between $61 million and $65 million[43]

Revenue Performance - Total revenue decreased by 10.0% to $246.2 million, compared to $273.6 million in Q3 2024[7] - Bumble App revenue decreased by 9.7% to $198.8 million, compared to $220.2 million in Q3 2024[7] - Revenue for the three months ended September 30, 2025, was $246.2 million, a decrease of 10% compared to $273.6 million for the same period in 2024[40] User Metrics - Total paying users decreased by 16.0% to 3.6 million, compared to 4.3 million in Q3 2024[7] - Total average revenue per paying user (ARPPU) increased by 6.9% to $22.64, compared to $21.17 in Q3 2024[7] Earnings and Profitability - Net earnings were $51.6 million, or 21.0% of revenue, compared to a net loss of $849.3 million in Q3 2024[7] - Operating earnings for the three months ended September 30, 2025, were $63.7 million, compared to an operating loss of $838.2 million in the same period of 2024[40] - Net earnings attributable to Bumble Inc. shareholders for the three months ended September 30, 2025, were $37.3 million, a significant improvement from a loss of $613.2 million in the same period of 2024[40] Cash Flow and Assets - Cash and cash equivalents increased to $307.9 million as of September 30, 2025, up from $204.3 million as of December 31, 2024[38] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $191,300, an increase from $128,839 in the same period of 2024[44] - The company experienced a net increase in cash and cash equivalents of $45,573 for the three months ended September 30, 2025[42] Expenses - Selling and marketing expenses for the three months ended September 30, 2025, were $32.8 million, a decrease of 48% from $63.5 million in the same period of 2024[40] - General and administrative expenses increased to $46.3 million for the three months ended September 30, 2025, compared to $33.3 million in the same period of 2024[40] - Non-GAAP selling and marketing expense for Q3 2025 was $31,678,000, down 0.6% from $63,037,000 in Q3 2024[47] Impairment and Liabilities - The company reported an impairment loss of $408.5 million for the nine months ended September 30, 2025, compared to an impairment loss of $892.2 million for the same period in 2024[40] - Total liabilities decreased to $1.16 billion as of September 30, 2025, compared to $1.18 billion as of December 31, 2024[38] - The company has substantial indebtedness, with long-term debt net of $583.6 million as of September 30, 2025[38] Future Outlook - The company anticipates fourth quarter revenue in the range of $216 million to $224 million, including Bumble App revenue of $176 million to $182 million[14] - The transaction is expected to enhance cash flow and provide strategic flexibility for future growth initiatives[15] - The company is focusing on improving member base quality and embedding innovation and AI into its platform[2]

Core Insights - Bumble Inc. reported a 10% decrease in total revenue for Q3 2025, amounting to $246 million, compared to $273.6 million in Q3 2024 [9] - The Bumble app revenue also saw a decline of 9.7%, totaling $199 million, while Badoo app and other revenue decreased by 11.3% to $47.4 million [9] - The company is focusing on improving member engagement and quality, integrating innovation and AI into its platform, and enhancing its brand narrative [2][4] Financial Performance - Total revenue decreased by 10% to $246.2 million from $273.6 million year-over-year [9] - Bumble app revenue decreased by 9.7% to $198.8 million from $220.2 million [9] - Badoo app and other revenue decreased by 11.3% to $47.4 million from $53.4 million [9] - Total paying users decreased by 16% to 3.6 million from 4.3 million [9] - Average revenue per paying user (ARPPU) increased by 6.9% to $22.64 from $21.17 [9] - Net earnings were $51.6 million, representing 21% of revenue, compared to a net loss of $849.3 million in the previous year [9] Operational Highlights - Bumble app paying users decreased to 2,344.1 thousand from 2,869.3 thousand [6] - Badoo app and other paying users decreased to 1,230.8 thousand from 1,386.2 thousand [6] - Total average revenue per paying user increased to $22.64 from $21.17 [6] Balance Sheet - As of September 30, 2025, total cash and cash equivalents were $307.9 million, while total debt stood at $589.4 million [7] Strategic Initiatives - The company is prioritizing profitability and financial flexibility while investing in innovation for sustainable long-term growth [4] - Bumble has reached an agreement for an early termination and settlement of the Tax Receivable Agreement (TRA) for approximately $186 million, which is over 50% less than the carrying value of the TRA liability [12][13] - The transaction is expected to enhance cash flow and provide strategic flexibility for future growth initiatives [21]