Bumble(US:BMBL)2024-11-08 21:05Financial Performance - Total Revenue for the three months ended September 30, 2024, was $273,605,000, a slight decrease of 0.3% compared to $275,510,000 for the same period in 2023[10] - Net loss for the three months ended September 30, 2024, was $849,259,000, compared to a net income of $23,124,000 for the same period in 2023[11] - Comprehensive loss attributable to Bumble Inc. shareholders for the three months ended September 30, 2024, was $616,886,000[11] - The company reported a net loss of $(561,187) for the year ending December 31, 2023, compared to a net loss of $(144,084) for the previous year, representing a significant increase in losses[14] - For the nine months ended September 30, 2024, Bumble Inc. reported a net loss of $777,700,000 compared to a net earnings of $30,144,000 for the same period in 2023[18] - The company reported a net loss of $849.3 million for the three months ended September 30, 2024, compared to a net income of $23.1 million in the same period of 2023[106] Revenue and User Metrics - Total Average Revenue per Paying User (ARPPU) was calculated based on Total Revenue divided by Total Paying Users, reflecting the company's revenue generation efficiency[10] - Total Paying Users increased, contributing to the overall revenue despite the net loss reported[10] - Bumble App revenue for Q3 2024 was $220.2 million, down from $221.8 million in Q3 2023[30] - Average revenue per paying user for Bumble App was $25.58 in Q3 2024, down from $28.38 in Q3 2023[88] - Total Paying Users for Bumble App increased by 10.2% to 2.9 million for the three months ended September 30, 2024[110] Operating Costs and Expenses - Operating costs and expenses for the three months ended September 30, 2024, totaled $1,111,792,000, significantly higher than $245,510,000 for the same period in 2023[10] - The total operating costs and expenses for the three months ended September 30, 2024, were $1.1 billion, significantly higher than $245.5 million in the same period of 2023, primarily due to impairment losses[106] - Selling and marketing expenses for the three months ended September 30, 2024, were $63.5 million, down from $68.8 million in the same period of 2023[106] - General and administrative expenses decreased to $33.3 million for the three months ended September 30, 2024, from $48.6 million in the same period of 2023[106] Impairment Losses - The company reported an impairment loss of $892,248,000 for the three months ended September 30, 2024, with no impairment loss reported in the same period of 2023[10] - The Company recorded $197.2 million in goodwill impairment charges during the three months ended September 30, 2024[27] - The Company recognized $670.3 million in impairment charges associated with indefinite-lived intangible assets during the same period[28] - The Company recorded $24.7 million in impairment charges related to the Fruitz asset group during the three months ended September 30, 2024[29] - An impairment charge of $670.3 million for indefinite-lived intangible assets was recognized during the three and nine months ended September 30, 2024, with total impairment loss for the nine months being $892.2 million[119] Shareholder Equity and Stock Repurchases - The balance of total shareholders' equity as of September 30, 2024, was $2,297,998,000, reflecting the impact of the net loss during the period[12] - The company repurchased 14.2 million shares of Class A common stock for $89.7 million during the three months ended September 30, 2024[30] - The Company repurchased a total of 19.5 million shares of Class A common stock and 2.0 million Common Units for $174.1 million during the nine months ended September 30, 2024[32] - The Company has $119.0 million remaining available for repurchase under the share repurchase program as of September 30, 2024[32] Cash Flow and Liquidity - Net cash provided by operating activities was $128,839,000, an increase from $118,669,000 in the prior year[18] - Cash and cash equivalents at the end of the period were $252,057,000, down from $439,184,000 a year earlier[18] - Net cash used in financing activities increased significantly to $207,749,000 from $58,355,000 in the prior year[18] - Free cash flow for the nine months ended September 30, 2024, was $122.7 million, compared to $105.9 million for the same period in 2023, with a free cash flow conversion rate of 53.0%[128] Acquisitions and Strategic Initiatives - The company continues to explore acquisition opportunities to strengthen its market position and expand its user base[10] - The Company completed the acquisition of Geneva Technologies, Inc. for total cash consideration of $17.5 million, with $17.2 million allocated to developed technology[44] - The company aims to expand the Bumble For Friends experience through the acquisition of Geneva in July 2024[30] Legal Proceedings - The company is subject to various legal proceedings, which may result in liabilities that cannot be reasonably estimated at this time[74] - The company faced six shareholder derivative complaints related to the September 2021 Secondary Public Offering, alleging false and misleading statements[78] - The company is currently involved in litigation related to the California Unruh Civil Rights Act, with a class action complaint filed in April 2024[80] Restructuring and Workforce Changes - The Company announced a restructuring plan to reduce its global workforce by approximately 350 roles, incurring total non-recurring charges of approximately $20.4 million through Q3 2024[46] - As of September 30, 2024, the remaining restructuring liability is $1.3 million, primarily consisting of accrued severance costs[46] Tax and Compliance - The effective tax rate for the Company was (0.5)% for the three months ended September 30, 2024, compared to 7.5% for the same period in 2023[36] - The company expects to qualify for transitional safe harbor relief under the Pillar Two rules in most jurisdictions, but some jurisdictions may not provide this relief[123] Other Financial Metrics - Adjusted EBITDA for Q3 2024 was $82.6 million, representing an Adjusted EBITDA margin of 30.2%, up from $75.3 million and 27.3% in Q3 2023[30] - The company incurred approximately $20.4 million in total non-recurring charges related to the Restructuring Plan, which was completed in Q3 2024[129]