Revenue Performance - Total Revenue for Q4 2023 increased 13.2% to $273.6 million, compared to $241.6 million in Q4 2022[4] - Bumble App Revenue rose 15.7% to $220.7 million, while Badoo App and Other Revenue increased 4.2% to $52.9 million[4] - Full Year 2023 Total Revenue increased 16.4% to $1,051.8 million, with Bumble App Revenue up 22% to $844.8 million[11] - Total revenue for the year ended December 31, 2023, reached $1.052 billion, up 16.4% from $903.5 million in 2022[52] User Metrics - Total Paying Users grew 16.4% to 4.0 million, up from 3.4 million in the previous year[4] - Total Paying Users increased to 1,253,000 in Q4 2023 from 1,093,000 in Q4 2022, representing a growth of 14.6% year-over-year[35] - Bumble App Average Revenue per Paying User (ARPPU) for the year ended December 31, 2023, was $4.054, compared to $3.819 for the year ended December 31, 2022, indicating a growth of 6.1%[35] Financial Losses and Improvements - Net loss for Q4 2023 was $32.0 million, significantly improved from a net loss of $159.2 million in Q4 2022[4] - Operating loss for Q4 2023 was $6.9 million, significantly improved from a loss of $147.4 million in Q4 2022[52] - Net loss attributable to Bumble Inc. shareholders for Q4 2023 was $26.0 million, compared to a loss of $110.6 million in Q4 2022[52] - Net earnings for the quarter ended December 31, 2023, were $(32,012) thousand, compared to $(159,246) thousand for the same quarter in 2022, showing significant improvement[55] Cash Flow and Liquidity - As of December 31, 2023, total cash and cash equivalents were $355.6 million, while total debt stood at $620.9 million[6] - Cash and cash equivalents at the end of Q4 2023 were $355.6 million, down from $402.6 million at the end of Q4 2022[54] - Operating cash flow for Q4 2023 was $63.4 million, an increase from $51.2 million in Q4 2022[54] - Free cash flow for the quarter ended December 31, 2023, was $61,251 thousand, compared to $46,150 thousand in the same quarter of 2022, indicating a 32.5% increase[55] - The company reported a net cash provided by operating activities of $63,417 thousand for the quarter ended December 31, 2023, up from $51,172 thousand in the prior year[55] Operational Efficiency - Adjusted EBITDA for Q4 2023 was $73.7 million, representing 26.9% of revenue, compared to 25.0% in Q4 2022[4] - Adjusted EBITDA for the year ended December 31, 2023, was $275,570 thousand, up from $226,919 thousand in 2022, reflecting a growth in adjusted EBITDA margin from 25.1% to 26.2%[55] - Adjusted EBITDA margin for the year ended December 31, 2023, was not specified but is calculated as Adjusted EBITDA divided by revenue, providing insight into operational performance[41] - The adjusted EBITDA margin increased by at least 300 basis points year-over-year, indicating strong operational efficiency[57] Cost Management - General and administrative expenses decreased to $52.008 million for the year ended December 31, 2023, from $63.575 million in 2022, a reduction of 18.3%[35] - Stock-based compensation expense for the year ended December 31, 2023, was $104.338 million, down from $111.008 million in 2022, a decrease of 6.0%[35] - Capital expenditures for the year ended December 31, 2023, were $(14,935) thousand, down from $(16,333) thousand in 2022, indicating a reduction in capital spending[55] Future Outlook - For Q1 2024, the company anticipates Total Revenue between $262 million and $268 million[19] - Bumble App Revenue for 2024 is expected to grow between 9% and 11%[21] - The company plans to reduce its global workforce by approximately 350 roles, expecting non-recurring charges of $20 million to $25 million[7] - The company plans to implement a global workforce reduction and restructuring of operations, which may impact future financial performance[46] - The company anticipates potential risks related to competition, user retention, and geopolitical conditions affecting future growth[46] Legal and Compliance - The company reported litigation costs net of insurance proceeds of $(71.918) million for the year ended December 31, 2023, compared to $(22.734) million in 2022, indicating increased legal expenses[35] - The company incurred litigation costs of $47,044 thousand in the quarter ended December 31, 2023, compared to $18,645 thousand in the same quarter of 2022, highlighting increased legal expenses[55] Asset Management - Total assets as of December 31, 2023, were $3.625 billion, a decrease from $3.693 billion in 2022[51] - Long-term debt as of December 31, 2023, was $615.2 million, slightly down from $619.2 million in 2022[51] - The company reported a significant increase in accounts receivable, netting $102.7 million in Q4 2023, up from $66.9 million in Q4 2022[51] Product Development - Product development expenses for the year ended December 31, 2023, were $130,565 thousand, compared to $109,020 thousand in 2022, reflecting a 19.8% increase[60] - Bumble Inc. plans to continue expanding its product offerings and market presence, focusing on user engagement and retention strategies[49]

AUSTIN, Texas--(BUSINESS WIRE)--To mark Safer Internet Day, Bumble Inc. (NASDAQ: BMBL) has announced its latest feature, Deception Detector™, building on its decade-long priority of building kind, safe, and authentic connections. Deception Detector™ uses Artificial Intelligence (AI) to help identify spam, scam and fake profiles, aiming to take action before members even see them. Within the first two months of the technology’s introduction, Bumble saw member reports of spam, scam, and fake accounts reduced ...

Bumble (NASDAQ:BMBL) stock is getting a boost on Tuesday following news of activist investor Elliott Investment Management taking a stake in one of its rivals.A new report reveals that Elliott Investment Management has built up a $1 billion stake in Bumble rival Match (NASDAQ:MTCH). Insiders claim that the increased stake in the dating service will see the activist investor push for changes to improve the price of MTCH stock.Interest in dating apps has been waning over the years. The problem started when Co ...

When I think about sleeper stocks, my mind goes to fictional character Freddy Krueger. Stay with me for a second. As you may know from the film series, “A Nightmare on Elm Street,” the protagonists of this horror franchise cannot afford to fall asleep. I’m not going to get into it here but bad things happen if they snooze.And it’s the same principle with these sleeper stocks. Sure, they look ugly and perhaps downright irrelevant on the surface. And even I’ve been critical of these ideas in the past. Still, ...

Bumble Inc. (NASDAQ:BMBL) Q3 2023 Results Conference Call November 7, 2023 4:30 PM ET Company Participants Cherryl Valenzuela - VP, IR Whitney Wolfe Herd - Founder, CEO Anu Subramanian - CFO Conference Call Participants Alexandra Steiger - Goldman Sachs Cory Carpenter - JP Morgan Ygal Arounian - Citi Shweta Khajuria - Evercore ISI Justin Patterson - KeyBanc Capital Markets John Blackledge - TD Cowen Mark Kelley - Stifel Chris Kuntarich - UBS Zach Morrissey - Wolfe Research Nate Feather - Morgan Stanley Ben ...

[Part I. Financial Information](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Bumble Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and comprehensive notes on key accounting areas Condensed Consolidated Balance Sheet Data (as of September 30, 2023) | Metric | Amount (in thousands) | | :--- | :--- | | **Total Assets** | $3,733,193 | | **Total Liabilities** | $1,253,034 | | **Total Shareholders' Equity** | $2,480,159 | | Cash and cash equivalents | $439,184 | Condensed Consolidated Statements of Operations Data | Metric | Three Months Ended Sep 30, 2023 (in thousands) | Nine Months Ended Sep 30, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $275,510 | $778,193 | | **Operating Earnings** | $30,000 | $60,235 | | **Net Earnings** | $23,124 | $30,144 | | **Net Earnings Attributable to Bumble Inc. Shareholders** | $16,671 | $21,813 | Condensed Consolidated Statements of Cash Flows Data (Nine Months Ended Sep 30, 2023) | Metric | Amount (in thousands) | | :--- | :--- | | **Net cash provided by operating activities** | $118,669 | | **Net cash used in investing activities** | $(22,589) | | **Net cash used in financing activities** | $(58,355) | [Note 2 - Revenue Recognition](index=16&type=section&id=Note%202%20-%20Revenue%20Recognition) This note details the company's revenue recognition policies, primarily for recurring subscriptions and in-app purchases - Revenue is primarily from recurring subscriptions and in-app purchases, recognized straight-line over subscription periods or based on usage[38](index=38&type=chunk) Revenue by App (in thousands) | App | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Bumble App** | $221,785 | $180,641 | $624,039 | $503,482 | | **Badoo App and Other** | $53,725 | $51,998 | $154,154 | $158,393 | | **Total Revenue** | **$275,510** | **$232,639** | **$778,193** | **$661,875** | [Note 6 - Goodwill and Intangible Assets](index=19&type=section&id=Note%206%20-%20Goodwill%20and%20Intangible%20Assets%2C%20net) This note provides details on the company's goodwill and intangible assets, including changes due to acquisitions and asset composition - Goodwill increased by **$4.6 million** in 2023 to **$1.58 billion** as of September 30, 2023, primarily due to the Newel Corporation acquisition[98](index=98&type=chunk)[75](index=75&type=chunk) - Net intangible assets totaled **$1.50 billion** as of September 30, 2023, with indefinite-lived brands like Bumble and Badoo comprising **$1.37 billion**[76](index=76&type=chunk) [Note 9 - Debt](index=22&type=section&id=Note%209%20-%20Debt) This note outlines the company's debt structure and recent amendments to its credit agreement - Total long-term debt, net of current portion and unamortized costs, was **$616.2 million** as of September 30, 2023[130](index=130&type=chunk) - The company amended its credit agreement in March 2023, transitioning the benchmark interest rate from LIBOR to SOFR[82](index=82&type=chunk) [Note 11 - Stock-based Compensation](index=25&type=section&id=Note%2011%20-%20Stock-based%20Compensation) This note details the company's stock-based compensation expenses and unrecognized compensation costs Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Cost of revenue | $542 | $2,800 | | Selling and marketing | $2,469 | $7,191 | | General and administrative | $10,352 | $44,029 | | Product development | $8,165 | $29,640 | | **Total** | **$21,528** | **$83,660** | - Total unrecognized compensation cost for Time-Vesting RSUs was **$86.2 million** as of September 30, 2023, expected to be recognized over 2.9 years[121](index=121&type=chunk) [Note 14 - Commitments and Contingencies](index=32&type=section&id=Note%2014%20-%20Commitments%20and%20Contingencies) This note describes the company's significant commitments and contingencies, including legal settlements and ongoing arbitration demands - The company reached an **$18 million** settlement in March 2023 for a class action lawsuit related to its September 2021 secondary public offering[177](index=177&type=chunk) - Over 15,000 individual arbitration demands regarding the "women message first" feature led to settlement offers after mediation, with **$14.0 million** in related costs recorded in Q3 2023[178](index=178&type=chunk) [Management's Discussion and Analysis (MD&A)](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's financial performance, highlighting **18.4%** YoY revenue growth in Q3 2023 to **$275.5 million**, driven by Bumble App user growth, and noting increased G&A expenses [Key Operating and Financial Metrics](index=36&type=section&id=Key%20Operating%20and%20Financial%20Metrics) This section presents key operating metrics, including total paying users and average revenue per paying user (ARPPU) for Bumble and Badoo apps Key Operating Metrics | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Total Paying Users (in thousands)** | 3,820.5 | 3,290.3 | | - Bumble App Paying Users | 2,604.9 | 2,088.1 | | - Badoo App and Other Paying Users | 1,215.6 | 1,202.2 | | **Total ARPPU** | $23.42 | $22.96 | | - Bumble App ARPPU | $28.38 | $28.84 | | - Badoo App and Other ARPPU | $12.79 | $12.75 | [Results of Operations](index=41&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's revenue and expense trends, highlighting key drivers and significant changes - Q3 2023 Bumble App revenue grew **22.8%** YoY to **$221.8 million**, driven by a **24.7%** increase in paying users, despite a **1.6%** decline in ARPPU[229](index=229&type=chunk) - Q3 2023 Badoo App and Other revenue increased **3.3%** YoY to **$53.7 million**, driven by modest increases in paying users and ARPPU[230](index=230&type=chunk) - General and administrative expense for Q3 2023 rose **78.2%** YoY to **$48.6 million**, primarily due to a smaller gain from contingent earn-out liabilities and a **$15.2 million** increase in legal fees[210](index=210&type=chunk)[260](index=260&type=chunk) - Depreciation and amortization expense decreased **13.3%** YoY in Q3 2023, primarily due to the full amortization of the legacy Badoo user base intangible asset[235](index=235&type=chunk) [Non-GAAP Financial Measures](index=46&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, to their most comparable GAAP measures Reconciliation of Net Earnings to Adjusted EBITDA (in thousands) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Earnings (loss)** | $23,124 | $26,405 | $30,144 | $45,122 | | **Adjusted EBITDA** | $75,281 | $61,837 | $201,862 | $166,421 | | **Net Earnings Margin** | 8.4% | 11.4% | 3.9% | 6.8% | | **Adjusted EBITDA Margin** | 27.3% | 26.6% | 25.9% | 25.1% | Reconciliation of Net Cash from Operating Activities to Free Cash Flow (in thousands) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $118,669 | $81,769 | | Less: Capital expenditures | $(12,769) | $(11,311) | | **Free cash flow** | **$105,900** | **$70,458** | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, primary liquidity sources, and share repurchase program - As of September 30, 2023, the company had **$439.2 million** in cash and cash equivalents, with liquidity primarily from cash on hand and operations[268](index=268&type=chunk) - The Board approved a share repurchase program, initially **$150.0 million** and later increased to **$300.0 million**, with **1.3 million** shares repurchased for **$20.9 million** during the nine months ended September 30, 2023[268](index=268&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company faces market risks from foreign currency fluctuations and interest rate changes, with **43.8%** of Q3 2023 revenue from outside North America, mitigated by interest rate swaps - Revenue from outside North America accounted for **43.8%** of combined revenue in Q3 2023, an increase from **39.0%** in Q3 2022, with a hypothetical **10%** change in British Pound and Euro impacting revenue by **$6.1 million** for the first nine months of 2023[1](index=1&type=chunk) - The company mitigates interest rate risk on its variable-rate debt through two interest rate swaps with a total notional amount of **$350 million**, effectively fixing the variable rate element on that portion of the debt[276](index=276&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management evaluated disclosure controls and procedures as effective, with no material changes to internal control over financial reporting during the quarter - There were no changes in the company's internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[3](index=3&type=chunk) [Part II. Other Information](index=52&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in various legal proceedings, including class action lawsuits, a settled secondary public offering case, and mass arbitration demands related to product features - The company is subject to various legal proceedings, including claims related to general commercial matters, product liability, intellectual property, and employment, with specific trademark proceedings ongoing for the BUMBLE, BADOO, and FRUITZ marks[4](index=4&type=chunk) [Issuer Purchases of Equity Securities](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The Board authorized a share repurchase program, initially **$150.0 million** and later increased to **$300.0 million**, with **$129.1 million** remaining available as of September 30, 2023 - The Board of Directors approved a share repurchase program of up to **$150.0 million** in May 2023, which was increased to **$300.0 million** on November 7, 2023[254](index=254&type=chunk) Issuer Purchases of Equity Securities (Three Months Ended Sep 30, 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | July 2023 | 0 | N/A | $129,110,016 | | August 2023 | 0 | N/A | $129,110,016 | | September 2023 | 0 | N/A | $129,110,016 | | **Total** | **0** | **N/A** | **$129,110,016** | [Exhibits](index=54&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the quarterly report, including certifications from the Principal Executive and Financial Officers - The report includes various exhibits, such as certifications from the Principal Executive Officer and Principal Financial Officer pursuant to the Sarbanes-Oxley Act of 2002[256](index=256&type=chunk)[289](index=289&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Bumble Inc. in Q2 2023 was $260 million, representing an 18% year-over-year increase, driven by Bumble app revenue growth of 23% [75][115] - Total paying users increased by 20% to reach 3.6 million, with both Bumble and Badoo showing sequential and year-over-year growth [75][115] - Adjusted EBITDA was $67 million, reflecting a 26% margin, up from a net loss of $5 million in the same period last year [38][115] Business Line Data and Key Metrics Changes - Bumble app revenue grew 23% to $208 million, primarily due to a 28% increase in paying users to 2.5 million [3][9] - Badoo app and other revenue totaled $52 million in Q2, up 2% year-over-year, marking the first quarter of year-on-year growth since the first half of 2021 [33][86] - Bumble app's ARPU was $28.21, down 3% year-over-year but up 1% sequentially [9] Market Data and Key Metrics Changes - Strong growth was observed in international markets, particularly in Germany, Italy, Portugal, and Latin America, contributing to positive download data and MAU growth [64][109] - The company maintained its number two spot in Germany and successfully expanded marketing efforts in newer markets [64] Company Strategy and Development Direction - The company aims to strengthen its ecosystem of connections beyond dating, focusing on friendships and community through the launch of Bumble for Friends [7][34] - A new stand-alone product, Official, was acquired to enhance existing relationships, providing date ideas and mood check-ins [113] - The company is exploring opportunities to expand its subscription offerings, including a lower-priced tier for Gen Z and a higher-priced tier for more serious dating [32][123] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of $1.055 billion to $1.072 billion, representing a growth rate of 17% to 19% [12] - The company is optimistic about the impact of AI on user experience and operational efficiency, with ongoing exploration of generative AI applications [66][110] - Management highlighted the importance of maintaining a disciplined approach to spending while investing in long-term growth [36][48] Other Important Information - The company repurchased 1.3 million shares for a total of $21 million as part of a $150 million share repurchase program [11] - Marketing campaigns, such as "Summer of Kindness," have been launched to promote new features and enhance brand awareness [111] Q&A Session Summary Question: Can you elaborate on the long-term vision of Bumble evolving into an ecosystem of relationships? - Management emphasized the integration of kinder connections and the demand for Bumble's offerings in the friendship category, aiming to retain customers through various relationship stages [14] Question: How should we think about normalized growth rates beyond 2023? - Management indicated it is too early to provide specific growth rates for 2024 but expressed excitement about the diversified portfolio and ongoing product innovations [122] Question: What is the impact of Compliments and Best Bees on revenue guidance? - Management confirmed that Compliments is performing as expected and contributing positively to revenue guidance for the full year [20] Question: Can you discuss the rationale behind recent price increases for Bumble app offerings? - Management explained that pricing optimization is based on value offered to users, with adjustments made in various markets to enhance payer penetration [22][49] Question: What are the key unlocks for attracting singles who haven't tried online dating? - Management is conducting focus groups to understand pain points and is developing products and marketing strategies to address these concerns [70]

Q2 2023 Earnings Supplemental Presentation 2 Total Revenue is the sum of Bumble App Revenue and Badoo App and Other Revenue. Total Paying Users is the sum of Bumble App Paying Users and Badoo App and Other Paying Users. Bumble App Paying User is a user that has purchased or renewed a Bumble app subscription plan and/or made an in-app purchase on Bumble pp in a given month. We calculate Bumble App Paying Users as a monthly average, by counting the number of Bumble App Paying Users in each month and then divi ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Bumble Inc.'s unaudited condensed consolidated financial statements, highlighting **$259.7 million** in quarterly revenue, **$9.3 million** net income, and **$3.69 billion** in total assets [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet details **$3.69 billion** in total assets, **$1.25 billion** in liabilities, and **$2.45 billion** in shareholders' equity as of June 30, 2023 Condensed Consolidated Balance Sheet Data (in thousands of USD) | Balance Sheet Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$3,692,297** | **$3,692,621** | | Cash and cash equivalents | $381,019 | $402,559 | | Goodwill | $1,585,281 | $1,579,770 | | Intangible assets, net | $1,508,036 | $1,524,428 | | **Total Liabilities** | **$1,245,965** | **$1,239,042** | | Long-term debt, net | $617,189 | $619,223 | | Payable to related parties (TRA) | $416,754 | $385,486 | | **Total Shareholders' Equity** | **$2,446,332** | **$2,453,579** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2023 saw total revenue of **$259.7 million**, a net income of **$9.3 million**, and diluted EPS of **$0.05**, reversing a prior-year loss Statement of Operations Highlights (in thousands of USD, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Total Revenue** | **$259,735** | **$219,206** | | Operating earnings (loss) | $21,171 | $(2,768) | | **Net earnings (loss)** | **$9,349** | **$(5,031)** | | Diluted earnings (loss) per share | $0.05 | $(0.03) | Six-Month Performance (in thousands of USD, except per share data) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Total Revenue** | **$502,683** | **$429,236** | | Operating earnings | $30,235 | $16,251 | | **Net earnings** | **$7,020** | **$18,717** | | Diluted earnings per share | $0.04 | $0.10 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$56.1 million**, while investing cash outflow decreased to **$19.1 million**, and financing cash outflow rose to **$54.7 million** Cash Flow Summary (in thousands of USD) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $56,100 | $44,767 | | Net cash used in investing activities | $(19,087) | $(77,769) | | Net cash used in financing activities | $(54,700) | $(9,069) | | **Net decrease in cash** | **$(22,223)** | **$(34,530)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, **$416.8 million** TRA liability, **$10.0 million** Newel acquisition, **$629.9 million** debt, and significant legal contingencies - Revenue primarily derives from recurring subscriptions and in-app purchases, recognized over the subscription term or estimated twelve-month period for lifetime subscriptions[53](index=53&type=chunk)[54](index=54&type=chunk) - The company acquired Newel Corporation for approximately **$10.0 million** in cash on April 26, 2023, recognizing **$4.7 million** in goodwill[65](index=65&type=chunk) - A Tax Receivable Agreement (TRA) with pre-IPO owners resulted in a **$416.8 million** liability as of June 30, 2023[62](index=62&type=chunk) - In March 2023, the company settled a shareholder class action lawsuit for **$18 million** related to its September 2021 SPO, without admitting wrongdoing[122](index=122&type=chunk) - Approximately **15,500** arbitration demands were received starting June 2023, alleging Unruh Civil Rights Act violations due to the 'women message first' feature, with mediation agreed upon[122](index=122&type=chunk) - The Board approved a **$150.0 million** share repurchase program in May 2023, with **1.3 million** shares repurchased for **$20.9 million** during the quarter[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2023 financial results, highlighting **18.5%** revenue growth to **$259.7 million**, driven by user increases, and an Adjusted EBITDA of **$67.3 million** [Key Operating and Financial Metrics](index=37&type=section&id=Key%20Operating%20and%20Financial%20Metrics) Key metrics show Total Paying Users increased to **3.63 million** in Q2 2023, led by Bumble App, despite a slight decline in Total ARPPU to **$23.23** Key Operating Metrics (Users in thousands, except ARPPU in USD) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Bumble App Paying Users | 2,457.8 | 1,924.5 | | Badoo App and Other Paying Users | 1,175.5 | 1,096.2 | | **Total Paying Users** | **3,633.3** | **3,020.7** | | Bumble App ARPPU | $28.21 | $29.18 | | Badoo App and Other ARPPU | $12.83 | $13.56 | | **Total ARPPU** | **$23.23** | **$23.51** | [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Q2 2023 total revenue grew **18.5%** to **$259.7 million**, driven by Bumble App, resulting in **$21.2 million** operating earnings despite increased costs - Bumble App revenue grew **23.5%** year-over-year in Q2 2023 to **$208.0 million**, driven by a **27.7%** increase in paying users[165](index=165&type=chunk) - Badoo App and Other revenue increased **2.0%** year-over-year in Q2 2023 to **$51.8 million**, driven by a **7.2%** increase in paying users[165](index=165&type=chunk) - Cost of revenue increased **24.8%** in Q2 2023, primarily due to higher in-app purchase fees and increased content moderation costs[167](index=167&type=chunk) - General and administrative expense decreased **11.5%** in Q2 2023, mainly due to a **$13.6 million** favorable change in contingent earn-out liabilities[170](index=170&type=chunk) - Depreciation and amortization expense decreased **37.5%** in Q2 2023, as the legacy Badoo user base intangible asset was fully amortized in July 2022[170](index=170&type=chunk) [Non-GAAP Financial Measures](index=48&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show Q2 2023 Adjusted EBITDA at **$67.3 million** (**25.9%** margin) and H1 2023 Free Cash Flow at **$46.9 million** Adjusted EBITDA Reconciliation (in thousands of USD) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net earnings (loss) | $9,349 | $(5,031) | | Adjustments (Interest, Tax, D&A, etc.) | $57,906 | $59,803 | | **Adjusted EBITDA** | **$67,255** | **$54,772** | | Net earnings (loss) margin | 3.6% | (2.3)% | | **Adjusted EBITDA margin** | **25.9%** | **25.0%** | Free Cash Flow (in thousands of USD) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $56,100 | $44,767 | | Less: Capital expenditures | $(9,210) | $(8,049) | | **Free cash flow** | **$46,890** | **$36,718** | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$381.0 million** in cash, with **$20.9 million** used for share repurchases and **$629.9 million** in long-term debt as of June 30, 2023 - The Board approved a **$150.0 million** share repurchase program, with **1.3 million** shares repurchased for **$20.9 million** in H1 2023[184](index=184&type=chunk) - Net cash from operating activities was **$56.1 million** for H1 2023, driven by net earnings adjusted for non-cash items including **$62.1 million** in stock-based compensation[186](index=186&type=chunk) - A commitment of **$12.0 million** for third-party cloud services over 18 months has **$11.5 million** remaining as of June 30, 2023[194](index=194&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency and interest rates, with **42.2%** of H1 2023 revenue from outside North America and variable-rate debt partially hedged - For H1 2023, **42.2%** of revenue was generated outside North America; a **10%** currency change would impact revenue by **$5.5 million**[197](index=197&type=chunk)[198](index=198&type=chunk) - With **$622.9 million** in debt, a **1%** interest rate increase would raise Q2 2023 interest expense by **$0.7 million**, mitigated by **$350 million** in interest rate swaps[201](index=201&type=chunk) - The company transitioned its benchmark interest rate from LIBOR to SOFR in March 2023, amending interest rate swaps in April 2023[201](index=201&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded the company's disclosure controls and procedures were effective as of June 30, 2023[202](index=202&type=chunk) - No material changes to internal control over financial reporting were identified during the most recent fiscal quarter[203](index=203&type=chunk) [PART II. OTHER INFORMATION](index=54&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company faces BIPA class actions, an **$18 million** settled shareholder lawsuit, and **15,500** arbitration demands regarding its 'women message first' feature - The company faces four putative class action lawsuits in Illinois alleging Biometric Information Privacy Act (BIPA) violations related to facial geometry scans[120](index=120&type=chunk) - A shareholder class action lawsuit related to the September 2021 SPO was settled for **$18 million** in March 2023[122](index=122&type=chunk) - Approximately **15,500** individual arbitration demands were received regarding the 'women message first' feature, alleging Unruh Civil Rights Act violations, with mediation agreed upon[122](index=122&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) This section refers to risk factors detailed in the company's 2022 Form 10-K, with no new significant risks disclosed in this report - The report refers to Part I, Item 1A of the company's 2022 Form 10-K for a discussion of risk factors[207](index=207&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased **1,320,372** shares for **$20.9 million** in Q2 2023 under a **$150.0 million** program, with **$129.1 million** remaining Issuer Purchases of Equity Securities (Q2 2023, in USD) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | May 1 - May 31, 2023 | 600,000 | $15.36 | $140,781,240 | | June 1 - June 30, 2023 | 720,372 | $16.20 | $129,110,016 | | **Total** | **1,320,372** | **$15.82** | **$129,110,016** | [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the quarterly report, including governance documents, equity award notices, and CEO/CFO certifications - The report includes exhibits such as Restricted Stock Unit Grant Notices, Director Compensation summaries, and CEO/CFO certifications[212](index=212&type=chunk)

Bumble, Inc. (NASDAQ:BMBL) Q1 2023 Earnings Conference Call May 4, 2023 4:30 PM ET Company Participants Cherryl Valenzuela - VP, IR Whitney Herd - Founder and CEO Anuradha Subramanian - CFO Tariq Shaukat - President Conference Call Participants Alexandra Steiger - Goldman Sachs Cory Carpenter - JPMorgan Shweta Khajuria - Evercore ISI Lauren Schenk - Morgan Stanley Ishant Goel - Deutsche Bank Justin Patterson - KeyBanc Capital Markets John Blackledge - Cowen Laura Champine - Loop Capital Operator Thank you f ...