Bumble(US:BMBL)2025-05-12 20:06Financial Performance - Total revenue for the three months ended March 31, 2025, was $247.1 million, a decrease of 7.7% from $267.8 million in the same period of 2024[129] - Bumble App revenue was $201.8 million, down from $215.8 million, while Badoo App and Other revenue decreased from $52.0 million to $45.3 million[129] - Net earnings for Q1 2025 were $19.8 million, representing a net earnings margin of 8.0%, compared to $33.9 million and a margin of 12.6% in Q1 2024[129] - Adjusted EBITDA for the three months ended March 31, 2025, was $64.4 million, with an Adjusted EBITDA margin of 26.1%, down from $74.0 million and 27.6% in the prior year[129] - Net earnings attributable to Bumble Inc. shareholders for the three months ended March 31, 2025, were $13.4 million, down from $24.6 million in the same period in 2024[171] - Free cash flow for the three months ended March 31, 2025 was $40,834 thousand, compared to $(381) thousand in the same period in 2024, with a free cash flow conversion of 63.4%[200] User Metrics - Total paying users for Bumble and Badoo apps combined decreased slightly to 4,014.7 thousand from 4,024.3 thousand year-over-year[132] - Average revenue per paying user for Bumble App decreased to $24.84 from $26.34, while Badoo App's average revenue per paying user fell to $10.72 from $12.35[132] - Bumble App revenue decreased to $201.8 million, down 6.5% from $215.8 million, driven by a 5.7% decline in ARPPU to $24.84 and a 0.8% decrease in paying users to 2.7 million[175] - Badoo App and Other revenue was $45.3 million, a decline of 13.2% from $52.0 million, primarily due to a 13.2% decrease in ARPPU to $10.72, despite a 0.9% increase in paying users to 1.3 million[176] Expenses - Cost of revenue decreased by $7.9 million, or 9.8%, to $73.4 million, representing 29.7% of revenue, down from 30.4% in the prior year[177] - Selling and marketing expenses decreased by $3.9 million, or 6.1%, to $59.7 million, accounting for 24.2% of revenue, up from 23.8%[180] - General and administrative expenses increased by $0.8 million, or 3.8%, to $21.6 million, representing 8.8% of revenue, compared to 7.8% in the previous year[181] - Product development expenses decreased by $1.5 million, or 4.2%, to $34.5 million, accounting for 14.0% of revenue, up from 13.5%[182] - Depreciation and amortization expense decreased significantly by $7.6 million, or 44.3%, to $9.6 million, representing 3.9% of revenue, down from 6.4%[183] Share Repurchase and Acquisitions - The company repurchased 4.7 million shares of Class A common stock for $28.7 million during Q1 2025, with $50.1 million remaining under the repurchase program[143] - The acquisition of Geneva Technologies Inc. was completed on July 1, 2024, for a total cash consideration of $17.5 million, aimed at enhancing the Bumble For Friends experience[152] - The company plans to discontinue operations of the Fruitz and Official apps, expecting to incur approximately $1.4 million in related expenses during the first half of 2025[153] Macroeconomic Impact - Macroeconomic conditions, including geopolitical conflicts and economic fluctuations, continue to impact the company's financial results and member engagement[140] Cash Flow and Debt - As of March 31, 2025, the company had $202.2 million in cash and cash equivalents, a decrease of $2.1 million from December 31, 2024[204] - Net cash provided by operating activities for the three months ended March 31, 2025 was $43,245 thousand, compared to $2,420 thousand in the same period in 2024[207] - Net cash used in financing activities decreased to $42.5 million in Q1 2025 from $94.4 million in Q1 2024, with $28.7 million allocated for share repurchases in Q1 2025[210][211] - The company has a total contractual obligation of $654.3 million as of March 31, 2025, with long-term debt including interest amounting to $619.9 million[216] - The company expects future payments under the tax receivable agreement to aggregate to $685.5 million over the next 15 years, with annual payments ranging from approximately $4.1 million to $69.3 million[219] Interest Rates and Currency - The company entered into new interest rate swaps for a total notional amount of $350.0 million, fixing the variable interest rate element at 3.18%[226] - A hypothetical 10% change in the British Pound and Euro relative to the U.S. Dollar would have impacted revenue by $6.0 million in Q1 2025 and $6.1 million in Q1 2024, representing 2% of total revenue for both periods[222] - A hypothetical interest rate increase of 1% would have increased interest expense for the three months ended March 31, 2025, by $0.7 million[225] Internal Controls - The company identified a material weakness in internal controls related to foreign currency translation, which could have resulted in material misstatements in financial reporting[229] - The company's disclosure controls and procedures were not effective at March 31, 2025, due to the identified material weakness[227] - Management identified a material weakness in internal control related to foreign currency translation, which could have resulted in material misstatements to the consolidated financial statements[229] - The company is implementing a remediation plan that includes defining standard operating procedures and redesigning controls over intercompany loan transactions[231] - There have been no changes in internal control over financial reporting that have materially affected the company's internal control during the three months ended March 31, 2025[233]