Bumble Inc (NASDAQ: BMBL) stock fell over 9% on 13th may, 2021 (as of 11:11:55 UTC-4 · USD; Source: Google finance) despite decent performance. The company’s namesake app increased sales by 61% in the first quarter as the pandemic began to wane in North America, which is its primary market.
The total paying users grew 30% to 2.8 million, with an average revenue per user of $19.99, which represents a more than $2 increase over last year. After the successful public offering in Q1, the company used part of the IPO proceeds to repay $200 million of the incremental term loan in March, and the company ended Q1 with a total cash of $246 million.
The company had reported the adjusted revenue growth of 43 percent to $170.7 million in the first quarter of FY 21, beating the analysts’ estimates for revenue of $164.6 million, according to Refinitiv IBES data. The revenue in Q1 2020 was affected by a $9 million decline in deferred revenue recorded in purchase accounting. Bumble app revenue was $113 million for the quarter, which represents the growth of 61% year over year. This growth was driven due to a healthy combination of increase in paying users as well as ARPPU. Bumble app paying users rose 44% year over year. Bumble apps ARPPU increased 12% year over year.
The company continued the rollout of Bumble Premium for Android in Q1, and it continues to see a positive impact on the ARPPU in these launch countries. Badoo app and other revenue was $58 million in Q1, which was up 18% year over year. This growth was driven by strong improvements in payer penetration with paying users up 19% year over year with strong contributions from countries, such as Brazil, Russia and the United States.
The Austin-based company is predicting sales to be in the range of $175 million to $178 million in the second quarter. For Q2, the company expects adjusted EBITDA to be in the range of $42 million to $44 million. For fiscal 2021, the company expects revenue in the range of $724 million to $734 million. For adjusted EBITDA, the company expects $177 million to $182 million, which represents an EBITDA margin of 25% at the midpoint.