Bumble(US:BMBL)2023-05-04 16:00Financial Performance - For the three months ended March 31, 2023, Bumble Inc. reported a net loss of $2.3 million compared to a net income of $23.7 million for the same period in 2022, representing a significant decline in profitability [34]. - Comprehensive income attributable to Bumble Inc. shareholders for the three months ended March 31, 2023, was $423,000, down from $15.51 million in the same period of 2022 [34]. - The company reported a net loss of $2.329 million for the three months ended March 31, 2023, compared to a net loss of $1.611 million for the same period in 2022 [57]. - Net earnings attributable to Bumble Inc. shareholders for the three months ended March 31, 2023, were $(1,611), compared to $16,201 for the same period in 2022 [93]. - The company reported a net loss attributable to common stockholders of $1.614 million for the three months ended March 31, 2023, compared to a net income of $16.226 million for the same period in 2022 [110]. - Basic earnings per share attributable to common stockholders were $(0.01) for Q1 2023, down from $0.13 in Q1 2022 [110]. Revenue - Total revenue for the three months ended March 31, 2023, was $242.948 million, a 15.7% increase from $210.030 million for the same period in 2022 [127]. - Bumble App revenue was $194.277 million for the three months ended March 31, 2023, compared to $154.367 million for the same period in 2022, reflecting a growth of 25.8% [45]. - Badoo App and other revenue decreased to $48.671 million for the three months ended March 31, 2023, down from $55.663 million in the same period last year, a decline of 12.6% [45]. - Revenue from North America was $143.073 million, up from $123.465 million, while revenue from the rest of the world increased to $99.875 million from $86.565 million [127]. - Revenue outside of North America accounted for 41.1% of combined revenue for the three months ended March 31, 2023, compared to 41.2% in the same period of 2022 [248]. Cash and Assets - Cash and cash equivalents decreased to $388.96 million as of March 31, 2023, from $402.56 million as of December 31, 2022, indicating a cash outflow [31]. - The total assets of Bumble Inc. increased slightly to $3.70 billion as of March 31, 2023, compared to $3.69 billion as of December 31, 2022 [31]. - The company reported total liabilities of $1.27 billion as of March 31, 2023, up from $1.24 billion as of December 31, 2022 [31]. - As of March 31, 2023, the total shareholders' equity was $2.436696 billion, compared to $2.453579 billion as of December 31, 2022, indicating a decrease of 0.7% [57]. - The total other current assets increased to $39,248 as of March 31, 2023, from $31,882 as of December 31, 2022 [89]. Expenses - Stock-based compensation expense for the three months ended March 31, 2023, was $28.58 million, an increase from $17.56 million in the same period of 2022 [37]. - The Company recognized amortization expense related to intangible assets of $14.3 million for the three months ended March 31, 2023, down from $24.6 million in the same period of 2022, a decrease of 41.5% [75]. - The company incurred total stock-based compensation costs of 17,779,420 for the three months ended March 31, 2023, compared to 9,853,990 for the same period in 2022 [95]. - The Company’s marketing expenses for Q1 2023 were $19.3 million, a slight decrease from $19.9 million in Q1 2022, reflecting a reduction of approximately 2.9% [103]. Cash Flow - The company experienced a net cash provided by operating activities of $13.39 million for the three months ended March 31, 2023, compared to $19.36 million for the same period in 2022 [37]. - Net cash used in investing activities was $6.8 million for the three months ended March 31, 2023, a substantial decrease from $74.7 million in the same period of 2022 [74]. - The Company’s cash equivalents as of March 31, 2023, totaled $264.9 million, down from $322.4 million as of December 31, 2022, representing a decrease of approximately 17.8% [104]. Debt and Liabilities - Total long-term debt, net as of March 31, 2023, was $618,205, a slight decrease from $619,223 as of December 31, 2022 [90]. - The company has a remaining debt maturity of $140,347 scheduled for future years, with the largest portion due in 2024 at $56,795 [88]. - The interest rates for the Original Term Loan and Incremental Term Loan as of March 31, 2023, were 7.38% and 7.88%, respectively [91]. - The tax receivable agreement liability increased by $31.4 million during the three months ended March 31, 2023, primarily due to the effects of a secondary offering [67]. Stock and Equity - The company completed a secondary offering of 13.75 million shares of Class A common stock at a price of $22.80 per share on March 8, 2023 [39]. - The weighted average number of shares of Class A common stock outstanding increased to 131,924,371 in Q1 2023 from 129,233,843 in Q1 2022 [110]. - The Company did not approve an increase to the number of shares available for issuance under the 2021 Omnibus Plan for 2022 and 2023, maintaining the initial reservation of 30 million shares [100]. Legal and Regulatory - The company executed a settlement agreement for $18 million, which does not reflect an admission of wrongdoing [129]. - The company believes that the ultimate resolution of various legal proceedings will not have a material adverse effect on its financial position [251]. Foreign Exchange and Interest Rates - A hypothetical 10% change in the British Pound and Euro relative to the U.S. Dollar would have changed revenue by $1.6 million and $3.4 million for the three months ended March 31, 2023, and 2022, respectively [248]. - The average Euro and British Pound exchange rates were 4.5% and 9.5% lower against the U.S. Dollar for the three months ended March 31, 2023, compared to the same period in 2022 [248]. - The company transitioned its benchmark interest rate from LIBOR to Term SOFR effective March 31, 2023 [242].