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Bumble share price: What's the outlook following FY20 results?

‘Our IPO was a pivotal milestone, but we are just getting started and are excited for the next chapter of our journey.’

Bumble share price rises after-hours

The Bumble share price popped in after-hours trade on Wednesday, 10 March after the dating company reported its first set of earnings following its +$2 billion IPO in February.

While Bumble (BMBL) closed out Wednesday's session some 0.62% lower, at $62.91 per share, the stock rallied hard after its Q4 and full-year release, rising 5.71% in after-hours trade.

Overall, the company delivered strong revenue growth for both the fourth quarter and full-year, while also beating Wall Street Q1 FY21 revenue guidance expectations. The company does however, remain loss making.

Fundamentals at a glance

On the top line, Bumble delivered solid growth, posting fourth quarter revenues of $165.6 million (+31.1%), contributing to full-year revenues of $542.2 million.

Bumble app revenue saw growth accelerate even faster, with Q4 Bumble app revenue hitting $105.8 million (+46.6%) and $337.2 million for the full-year.

Impressively, fourth quarter paying users hit 2.7 million, a significant jump from the prior corresponding period where paying users stood at just 2.0 million.

Better still, average revenue per paying user (ARPPU) exhibited a positive trend in Q4, coming in higher than the overall full-year. Fourth quarter ARPPU reached $20.02, against full-year ARPPU of $18.89.

Speaking of the company's ability to convert free users to paying, Bumble's CEO and Founder, Whitney Wolfe Herd said:

‘Our significant increase in revenue and paying users is a direct result of our team’s dedication and remarkable agility during a challenging pandemic.’

Adjusted earnings (EBITDA) came in at $44.1 million in Q4 and $143.1 million for the full-year

Mind you, while earnings (EBITDA) continue to exhibit strong trends and paying user growth underscores Bumble’s popularity as a dating app, the company remains loss making, recording a net loss of $110.2 million in FY20.

The FY21 outlook in focus

Looking forward, Bumble provided the market with revenue and earnings (EBITDA) guidance for both the first quarter of FY21 and the full-year of FY21. The following guidance was provided:

Q1 FY21 Guidance

Full-year FY21 Guidance

Revenue

$163-165 million

Revenue

$716-726 million

EBITDA (adjusted)

$41-42 million

EBITDA (adjusted)

$173-$178 million

That first quarter revenue guidance was ahead of Street expectations, according to Bloomberg.

More broadly, despite weakness in the Bumble share price over the last month (a consequence of weakness across the tech sector), Bumble’s CEO remains confident in the company’s future, saying:

‘Looking ahead, we remain focused on driving scale, investing in our users and expanding internationally. Our IPO was a pivotal milestone, but we are just getting started and are excited for the next chapter of our journey.’

Analysts are similarly bullish, with Bumble carrying a Buy rating and a $68.30 price target – on average, according to MarketBeat.

How to trade Bumble with IG

Are you feeling bullish or bearish on Bumble following the Q4 release? Either way, you can trade Bumble shares and other dating stocks such as Match Group – both LONG and SHORT – through IG’s world-class trading platform now.

To buy (long) or sell (short) Bumble with CFDs, follow these simple steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘Bumble’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

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