Bumble(US:BMBL)2025-11-07 20:55Financial 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]