Bumble Sinks 9.4% Despite Upbeat Q3 Results

Online dating application Bumble Inc. (BMBL) has reported better-than-expected results for the third quarter ended September 30, 2021. The robust results were on the back of strong growth in revenues. However, following the earnings, shares of the company declined 9.4% to close at $43.25 in the extended trade.

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Revenue & Earnings

Bumble reported quarterly revenues of $200.5 million, which denotes a year-over-year rise of 24%. Moreover, the figure topped the consensus estimate of $199.75 million. A year-over-year increase of 39% in Bumble App revenue to $142 million boosted the overall revenues of the company.

The company reported a quarterly loss per share of $0.06, wider than the loss of $0.01 per share reported in the same quarter last year. The figure was slightly narrower than the consensus estimate of a loss of $0.07 per share.

Other Operating Metrics

Bumble’s total paying users increased 4.6% from the previous year to 2.9 million. Average Revenue per Paying User rose 18.5% year-over-year.

Outlook

For the fourth quarter, the company forecasts revenue to be between $208 million and $211 million against the consensus estimate of $205.96 million.

For full-year 2021, the company expects revenue to be in the range of $765 million to $768 million.

Management Commentary

The CEO of Bumble, Whitney Wolfe Herd, said, “In the third quarter, we delivered strong revenue growth and successful execution across our strategic priorities including driving user engagement, expanding into new markets, launching innovative product and safety features, and improving our overall monetization.”

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Price Target

Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average Bumble price target of $67 implies upside potential of 40.3% from current levels. Shares have declined 32.1% over the past year.

TipRanks Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Bumble’s performance this quarter.

According to the tool, the Bumble website recorded a 13.47% monthly rise in global visits in October. Further, year-to-date, website traffic increased 44.99%.