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Bumble (BMBL) shares are dropping by as much as 17% in extended hours (at the time of this video's posting) despite the dating app topping revenue ($261.6 million vs. estimates of $260.5 million) and paying users (4.2 million vs 4.18 million) estimates. The stock seems to be getting dragged lower due to Bumble's first quarter 2025 outlook on revenue and adjusted EBITDA.
Julie Hyman and Alexandra Canal react to Bumble's earnings report and guidance figures.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
This post was written by Luke Carberry Mogan.
Uh let's get to some earnings results here. Bumble, the online dating company, out with its latest earnings reports. The shares dropping a quick 12% or so after the revenue outlook looks like is missing what analysts had been anticipating. So Bumble coming out here said that revenue was $261.6 million. That was ahead of estimates. EBITDA for the fourth quarter also coming out ahead of estimates on an adjusted basis, $72.5 million for that. But if you look at the company's first quarter outlook, it says it will make at most $248 million in revenue. That's short of the more than $257 million that analysts had been anticipating. And in the first quarter, it says its adjusted EBITDA will again be at most $63 million, uh, whereas analysts on average had been looking for a little over $69 million. So the outlook appears to be what is sending those shares down.
Yeah, and we've seen that with a lot of companies, right? If you miss on outlook, if you miss on that forecast, that's going to be, you know, a punishment to the stock price. I'm curious on their earnings call and taking through the earnings release, what they're attributing that miss to. Uh, you know, we've been hearing from a lot of companies that a stronger dollar, if they're more exposed overseas, that could potentially be weighing on the outlook. But, I mean Bumble, it it's an interesting story, right? I mean, they introduced that premium plus subscription tier a couple of years ago that was expected to support revenue growth, and and to that point, paid subscribers did meet estimates in in the quarter, but from an analyst perspective, it seems like a lot of folks are on the sidelines, only uh, four buys, one sell, but 16 holds. So perhaps more that they want to see from this company.
Yeah, and the shares are down 40% over the past year here. So we'll get some more um details on uh the call, presumably about, as you said, what's behind that outlook. But, uh, the the company's current CEO, Lydia and Jones, talking about Whitney Wolfe Herd coming back to the company, um and also talking about a product roadmap for the year ahead um that should hopefully for them improve their performance.
Yeah, I mean, shares right now escalating losses down about 17%.
