Shares of Bumble (NASDAQ:BMBL) fell about 8% on Tuesday’s extended trade after the company’s fourth-quarter results missed analysts’ expectations. BMBL offers online dating services and operates two apps, Bumble and Badoo, enabling users to connect and interact with each other.
In conjunction with its earnings announcement, BMBL announced plans to lay off about 350 employees as part of its restructuring plans. With this move, the company aims to align its operating model more closely with its future strategic priorities.
Results in Detail
Bumble reported a loss of $0.19 per share in the fourth quarter, versus earnings of $0.12 per share expected by the analysts. However, the reported figure improved from a loss of $0.85 per share in the prior year’s quarter. Meanwhile, total revenues climbed 13.2% year-over-year to $273.6 million but came below the consensus estimate of $275.3 million.
During the quarter, Bumble’s App revenue rose by 15.7% to $220.7 million, while revenues from the Badoo App increased by 4.2% to $52.9 million. Furthermore, total paying users in Q4 climbed by 600,000 to 4 million. On the other hand, the total average revenue per paying user in the fourth quarter declined to $22.64 from $23.01 in the same quarter last year.
Outlook
Looking forward, management expects first-quarter revenue to be in the range of $262 million to $268 million, representing a growth rate of 8% to 10% year-over-year. Analysts were expecting $277.8 million in revenue. Bumble expects Q1 net sequential user additions between 30,000 and 40,000.
For the full year 2024, the company expects revenue to grow in the range of 8% to 11%.
Is BMBL Stock a Good Buy?
Bumble stock has a Moderate Buy consensus rating based on two Buys and two Holds. The average BMBL stock price target of $16.50 implies 25.19% upside potential. The stock has declined 45.5% over the past year.
