Bumble(US:BMBL)2025-05-07 21:30Financial Data and Key Metrics Changes - In Q1 2025, total revenue for Bumble Inc. was $247 million, with a foreign exchange impact of approximately $6 million [30] - Bumble app revenue was $200 million, including a foreign exchange headwind of about $4 million [30] - Adjusted EBITDA for Q1 was $64 million, representing 26% of revenue [31] - The company reported GAAP net earnings of $20 million [31] - Cash flow for Q1 was strong at $43 million, ending the quarter with $200 million in cash and cash equivalents [31] Business Line Data and Key Metrics Changes - Total paying users in Q1 were 4 million, with Bumble app paying users at 2.7 million [30] - Vadu app and other revenue totaled $45 million, with 1.3 million paying users [30] Market Data and Key Metrics Changes - The company anticipates a revenue decrease of 10% to 13% year-over-year for Q2, translating to total revenue between $235 million and $243 million [34] - Bumble app revenue for Q2 is expected to be between $193 million and $199 million, representing a year-over-year decrease of 11% to 19% [34] Company Strategy and Development Direction - The company is focusing on quality over quantity, aiming to improve member experience and match quality [5][11] - Bumble is modernizing its personalized matching algorithm using AI and machine learning to enhance match relevancy [12] - The company is reducing marketing spend by $20 million in Q2 to focus on organic marketing strategies [16] - Bumble aims to create a verified and trusted community by removing low-quality profiles and enhancing member profiles [11][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the online dating industry is at an inflection point and emphasizes the need for a return to quality matches [5][23] - The company believes that the demand for love is robust and global, indicating significant growth potential [44][100] - Management is committed to improving member engagement and success metrics rather than focusing solely on paying user numbers [24][34] Other Important Information - The company has identified $15 million in near-term operating cost savings and expects to continue finding efficiencies [31][32] - Bumble is not pursuing growth in international markets until product issues are resolved, with a focus on 2026 for international expansion [106] Q&A Session Summary Question: Changes in performance marketing and addressable market - Management emphasized that the focus is on quality, not just scaling for growth, and that the total addressable market remains significant [41][42] Question: Key metrics for measuring success - Management highlighted the importance of member engagement quality, including match success and user experience [53][57] Question: AI investments and productivity gains - Management discussed leveraging AI for safety, verification, and enhancing the matching algorithm to improve user experience [61][62] Question: User behavior in international markets - Management noted that user complaints are similar across markets, focusing on fulfilling matches and safety [102][104]