Online dating platform Bumble Inc. (NASDAQ: BMBL) is scheduled to report its results for the first quarter of 2022 on May 11, after market close.
The company, known for its Badoo, Fruitz, and Bumble applications, had delivered impressive growth in key metrics such as total paying users and average revenue per paying user (ARPPU) in the fourth quarter of 2021 and provided encouraging projections for 2022 in March.
However, its results were weaker-than-expected in the fourth quarter, with a loss of $0.08 per share, coming in worse than the consensus estimate of $0.00 per share. Revenues at $208.2 million were 0.7% below the consensus estimate of $209.6 million.
With the first-quarter results now knocking on the door, a brief take on the consensus expectations and the factors that might have influenced the results will be helpful.
Consensus Estimates for Q1
For the first quarter of 2022, the consensus estimate for Bumble’s earnings is pegged at $0.01 per share. This estimate suggests an improvement over the loss of $0.08 per share reported in the fourth quarter of 2021.
Also, the consensus estimate for the company’s revenues stands at $208.4 million, slightly higher than the previous quarter’s tally of $208.2 million.
Analyst Mark Mahaney of Evercore ISI finds the consensus estimate of $208 million for revenues to be “reasonable.” The analyst has a Buy rating and a price target of $40 (99.5% upside potential) on BMBL.
Factors Influencing Q1
Bumble benefited from an increase in total paying users and ARPPU in the fourth quarter of 2021, mainly driven by its Bumble App. The continuation of such a trend in the first quarter of 2022 will be reflected in its top-line performance.
Also, the company’s efforts to expand its market presence through digital marketing, the enhancement of user experiences, and the constant development of products might have been beneficial. Further, the addition of the Fruitz dating app to its portfolio is another tailwind for the company.
For the first quarter of 2022, the company anticipates total revenues to range from $207-$210 million. Bumble App revenues are forecast within the $152-$153 million range, higher than the previous quarter’s tally of $150.5 million.
On the flip side, the foreign currency translation impact is expected to be an adverse $5 million in the quarter, while a loss of business due to the ongoing Ukraine-Russia war is predicted to hurt the top line by $2 million.
Website Traffic Growth
A look at Bumble’s website traffic points out the growing popularity of the products and services offered by the company. Per the TipRanks Website Traffic tool, traffic to bumble.com increased 28.02% in April versus March, grew 4.06% in the first quarter of 2022 versus the fourth quarter of 2021, and surged 49.67% year-to-date versus the same period last year.
Wall Street’s Take
Turning to Wall Street, the company has a Moderate Buy consensus rating based on 10 Buys and four Holds assigned in the past three months. Bumble’s price forecast of $34.07 implies 69.9% upside potential from current levels.
Over the past year, shares of Bumble have declined about 66%.
Conclusion
From the aforementioned discussion, it seems that Bumble’s results for the first quarter of 2022 will be driven by its top-line strength in its Bumble App. Hurdles in the form of forex woes and the loss of Russian business are concerning.
Discover new investment ideas with data you can trust.
Read full Disclaimer & Disclosure
Related News:
Beazley Reports Strong Q1 Results, Shares Up 5.58%
Why Did Under Armour Shares Dip 23.9%?
Spire’s Q2 Results Fall Year-Over-Year but Surpass Estimates
