Q1 2024 Earnings Summary
- Bumble anticipates reacceleration of growth in the second half of 2024 due to the relaunch of the Bumble App and new product features, which have shown positive early data, including increased engagement, adoption of new features, and an increase in users getting matches. This gives the company confidence in achieving improved trends later in the year.
- Bumble is leveraging innovation, including generative AI, to enhance user experiences, aiming to make dating easier and more personalized. The company is integrating AI into features such as profile creation and enhancing customer service, which may lead to improved engagement and growth.
- Badoo, Bumble's other app, has shown continued positive momentum, achieving four consecutive quarters of year-over-year positive revenue growth. This success allows for cross-pollination of learnings between Badoo and Bumble, potentially enhancing growth across their portfolio.
- The company's revenue growth is expected to slow down significantly in Q2 2024, with Bumble App revenue projected to grow between 5% and 7%, down from 11% growth in Q1. This slowdown is due to continued challenges with user acquisition, particularly among younger users in the U.S.
- The anticipated reacceleration of growth in the second half of 2024 is heavily reliant on the success of the Bumble App relaunch and future product updates. However, the positive early data is based on only one week since launch, introducing uncertainty to the company's growth projections.
- Unfavorable foreign exchange trends have intensified, potentially causing an incremental revenue headwind of at least 50 basis points, which could negatively impact the company's financial performance.
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Revenue Guidance and Growth Trajectory
Q: Why is revenue growth expected to dip in Q2 and then rebound?
A: Revenue growth is expected to slow slightly in Q2 due to continued softness in top-of-funnel trends, especially among younger users in the U.S.. However, we anticipate improvements in the second half as a result of new product features, the Bumble app relaunch, and strong marketing efforts. -
Marketing Strategy and ARPPU Impact
Q: How will the marketing strategy and pricing optimizations affect ARPPU?
A: Our broad marketing approach, including the recent Bumble app relaunch, aims to engage a wide customer base, especially younger users. We introduced new capabilities for Premium+, focused on helping customers get matches faster, which is aimed at increasing conversion and ARPPU across tiers. -
Conviction in Back Half Acceleration
Q: What gives you confidence in accelerating growth in the second half?
A: Early data from the relaunch shows promising engagement and adoption of new features. Upcoming product innovations and strong brand moments are expected to drive user growth and reacceleration of trends in the second half. -
Badoo's Growth and Outlook
Q: Has Badoo turned a corner, and what does success look like?
A: Badoo has a loyal customer base, and our targeted marketing campaign has resonated with users. We continue to fine-tune the product based on feedback, leveraging learnings across our portfolio to drive growth. -
Share Buyback and Capital Allocation
Q: Can you elaborate on your share buyback strategy?
A: With a strong balance sheet and cash flow, we're committed to investing in our business and considering opportunistic M&A. We also believe investing in ourselves through our buyback program is a good use of cash and will continue to be opportunistic in deploying it. -
Strategy Shift for Bumble BFF
Q: How is the strategy for BFF changing?
A: We're reapproaching BFF to help users find groups with similar interests to meet in real life, addressing feelings of loneliness among Gen Z. Our vision is to bring authentic human connections beyond dating. -
M&A Criteria and Opportunities
Q: What are your criteria for pursuing M&A opportunities?
A: We have a principled approach, focusing on seamless integration to create value across customers' lives. We consider whether opportunities align with and accelerate our long-term mission. -
Impact of Offering More Options to Women
Q: How has giving women more control impacted interactions?
A: Women still make the first move but now have more control in how they do it. This change has been positively received by women and has also benefited men, leading to more engaged conversations and increased matches. -
Plans for Generative AI
Q: How are you planning to use generative AI in your apps?
A: We're excited about using AI to enhance profile creation and matching. AI can help users build better profiles effortlessly and improve compatibility matching, leading to more successful connections. -
Stock-Based Compensation Expectations
Q: What are your expectations for stock-based compensation this year?
A: Following an unusual Q1 due to workforce changes, we anticipate overall stock-based compensation levels will be lower than historically seen. We'll provide better visibility once we finalize workforce transformations.
Research analysts covering Bumble.