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Bumble Stock Tumbles 11% on Mixed Q2 Results

Story Highlights

Bumble’s results for the second quarter are marked by an improvement in revenue and operating numbers. However, the company’s share price fell as a result of worse-than-expected losses.

Online dating company Bumble Inc. (NASDAQ: BMBL) reported mixed results for the second quarter ended June 30, 2022. Although revenues surpassed estimates, earnings failed to do so. As a result, shares of the company declined by 11.3% to close at $30.59 in extended trade.

Q2 Results Snapshot

Bumble reported quarterly revenues of $220.5 million, which represents a growth of 18.4% from the previous year. Additionally, the figure surpassed the consensus estimate of $219.4 million. Year-over-year growth of 33.2% in revenues from the Bumble App was the major contributor to the overall growth in revenues.

The company’s losses narrowed from the previous year to $0.03 per share from $0.06 per share. However, EPS came in wider than the consensus estimate of a $0.01 per share loss.

Meanwhile, some of the company’s key operating metrics marked an improvement from the year-ago quarter.

While total paying users at the end of the quarter stood at 3.02 million compared to 2.93 million in the previous year, the average revenue per paying user increased by 13.3% to $23.65. Further, the company’s adjusted EBITDA improved by 5.6% from the previous year to $54.8 million.

The company’s cash-generating capabilities also grew as the company reported net cash provided by operating activities of $25.41 million, up from $14.4 million in the previous year.

Meanwhile, the company expects revenue to hover between $236 million and $240 million and $920 million to $930 million, respectively, for the third quarter and 2022.

What is Bumble’s Stock Prediction?

The Wall Street community remains optimistic about Bumble’s prospects.

The consensus among analysts for Bumble stock is a Strong Buy based on 9 Buys and three Holds. The BMBL average price target of $36.30 implies an upside potential of 5.3% from current levels. Shares have declined 27.7% over the past year.

Meanwhile, top investors also are also bullish and are accumulating the company’s stock.

TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on BMBL. Further, 12.5% of the top portfolios tracked by TipRanks, increased their exposure to BMBL stock over the past 30 days.

Key Takeaways

Although Bumble’s shares nosedived on a wider-than-expected loss per share figure, the company has reported strong top-line growth for the second quarter. With revenues rising and some of the key operating metrics showing strength, the company is still well-positioned for growth.

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