Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $246 million, a 10% decline year-over-year [22] - Bumble app revenue was $199 million, also down 10% year-over-year [23] - Adjusted EBITDA for the quarter was $83 million, up 1%, representing a margin of 34%, up from 30% in the year-ago period [24] - Net income was $52 million [24] - Cash flow from operations was $77 million compared to $93 million in the year-ago period [25] Business Line Data and Key Metrics Changes - Badoo app and other revenue declined 11% to $47 million [23] - Cost of revenue was $69 million, representing 28% of revenue, down approximately 1 percentage point year-over-year [24] - Sales and marketing expense was $32 million, down 50% year-over-year [24] Market Data and Key Metrics Changes - Member registrations are lower in the near term due to the focus on quality over quantity, but early indicators suggest that retention is improving [6][25] - The company is seeing a 4 percentage point improvement in brand awareness among single women in the U.S. aged 22 to 45 due to the "For the Love of Love" campaign [16] Company Strategy and Development Direction - The company is transforming into the "Love Company," expanding beyond dating to build a global platform for meaningful relationships [6] - The focus is on improving member experience and quality, with a commitment to trust and safety [19] - The company is implementing a "Be High Fit" framework to measure progress against goals of building a higher quality community [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the current transformation may create near-term headwinds but is designed for healthier growth and stronger monetization over time [18] - The outlook for Q4 anticipates continued attrition in active and paying members, but improvements in retention and average revenue per paying user are expected [25][26] - The company expects total revenue in Q4 to be in the range of $216 million to $224 million, representing a year-over-year decline of approximately 17% to 14% [26] Other Important Information - A transaction to purchase all parties' outstanding tax receivable agreement rights for approximately $186 million was agreed upon, simplifying the capital structure and improving future cash flows [27] - The company ended the quarter with $308 million in cash and equivalents [25] Q&A Session Summary Question: Vision for Bumble in 2-3 years - The company aims to solve women's pain points and enhance the member experience, focusing on delivering high-quality matches [29][30] Question: Timing and magnitude of revenue growth recovery - The company needs to complete the trust and safety efforts and expects to see improvements in paying user growth beginning in early 2026 [33][34] Question: Insights on improved members - The company is focused on helping improved members transition to approved members through better profile setups and engagement tools [38][39] Question: Standalone AI product vision - The standalone AI product will provide a unique dating experience and will also integrate learnings into the core Bumble experience [44][46] Question: Key drivers for upcoming product releases - The company is prioritizing customer service improvements and addressing member pain points as key drivers for future growth [50][51]

Core Insights - ODDITY Tech Ltd. reported strong Q2 2025 results, with net sales and earnings exceeding estimates and showing year-over-year growth [1][3] - The company raised its full-year outlook, driven by robust top-line growth and strategic investments in innovation [2] Financial Performance - Adjusted EPS for Q2 was 92 cents, beating the estimate of 88 cents, and increased by 12.2% year-over-year [3] - Net sales reached $241.1 million, surpassing the estimate of $239 million, and grew by 25.1% from $192.8 million in the prior year [3] - Online DTC sales rose by 29.6% to $235.2 million, constituting 98% of total sales, up from 94% in the previous year [4] Margin and Cost Analysis - Gross profit was $174.4 million, a 25.3% increase from $139.1 million last year, with a gross margin of 72.3% [5] - SG&A expenses increased by 36.3% to $117.3 million, representing 48.6% of net sales, up 200 basis points year-over-year [5] - Operating income was $57.1 million, a 7.6% increase, while the operating margin declined to 23.7% [6] Strategic Developments - ODDITY's core brands, IL MAKIAGE and SpoiledChild, achieved double-digit online sales growth, supported by AI-driven personalization [10] - The company is on track to launch Brand 3 in Q4 2025, targeting the medical-grade dermatology segment, and Brand 4 is expected to launch in 2026 [11] - ODDITY raised $600 million through its first exchangeable note offering, indicating strong investor confidence [12] Future Guidance - For FY25, ODDITY expects net sales between $799 million and $804 million, reflecting 23-24% year-over-year growth [13] - Adjusted EBITDA is projected between $160 million and $162 million, with adjusted EPS expected between $2.06 and $2.09 [14] - For Q3 2025, net sales are anticipated to be between $144 million and $146 million, indicating year-over-year growth of 21-23% [14] Financial Health - As of June 30, 2025, ODDITY had cash and cash equivalents of $656.8 million, no long-term debt, and shareholders' equity of $351.2 million [9]

Group 1: Market Overview - The Russell 2000 index rose by +1% as small-cap stocks benefited from the fastest stock market rebound in history following a correction of over 10% in March [1] - Many underperforming stocks are attracting investor attention as the market exits a favorable Q2 [1] Group 2: Bumble (BMBL) - Bumble's stock has rebounded over +50% in the last three months but remains more than 30% below its 52-week high of $10 per share [3] - The company operates two of the highest-grossing dating apps, Badoo and Bumble, and is already profitable since going public in 2021 [3] - Bumble trades at 7X forward earnings, with expected high-double-digit EPS growth in fiscal 2025 and 10% EPS growth in FY26 [3] Group 3: Earnings Estimates for Bumble - Current quarter EPS estimate is $0.31, with a year-over-year growth estimate of 40.91% [4] - Next quarter EPS estimate is $0.26, with a year-over-year decline of 25.71% [4] - Current year EPS estimate is $0.91, with a significant year-over-year growth of 119.74% [4] Group 4: Creative Realities (CREX) - Creative Realities has seen its stock surge over +50% in the last three months, trading at $3 per share [5] - The company is expected to cross into profitability this year after an adjusted loss of -$0.34 per share in 2024 [5] - Total sales are projected to rise by 10% in FY25 and another 13% in FY26, reaching $63.3 million [5] Group 5: Lyft (LYFT) and Crexendo (CXDO) - Lyft's stock, with a Zacks Rank 2 (Buy), has posted +20% gains in the last three months and is expected to grow over 10% in FY25 and FY26 [6] - Lyft shares trade under $20 at 14.3X forward earnings, while Crexendo trades at $6 with a P/E multiple of 21.3X [7] Group 6: Investment Sentiment - The extended rally in top-rated internet stocks like Bumble, Creative Realities, Lyft, and Crexendo is expected to continue amid the stock market's historic rebound [8]

Core Insights - Bumble Inc. announced a 30% workforce reduction, equating to approximately 240 job losses, to realign its operating structure and optimize execution on strategic priorities [1][5][6] - CEO Whitney Wolfe Herd emphasized the need for decisive restructuring to build a resilient organization prepared for future challenges [2][4] - The company aims to become more agile and prioritize core product innovation while focusing on member health and experience [4] Financial Implications - Bumble expects to incur $13-18 million in charges related to severance and benefits due to the layoffs, primarily in Q3 and Q4 of this year [5] - The job cuts are projected to yield annual savings of up to $40 million, which will be redirected towards strategic initiatives, including product and technology development [11] - For Q2, Bumble anticipates revenue between $244 million and $249 million, with an EBITDA forecast of $88 million to $93 million [8] User Metrics - As of the end of Q1, Bumble had a total of four million paying users [12] - The company reported a year-over-year revenue decline to $247.1 million in Q1 [9] Strategic Adjustments - Bumble is shutting down two of its apps, Fruitz and Official, as part of its strategy to streamline operations [10]