Bumble Inc (NASDAQ: BMBL) stock surged over 9.7% in the pre-market session of March 11th, 2021 (Source: Google finance). The company had reported the adjusted revenue growth of 31.1 percent to $165.6 million in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $163.3 million. Total paying users grew 32% to 2.7 million, with an average revenue per user of $20.02, almost unchanged compared to the last year. This is Bumble’s first earnings release after its $2.15 billion initial public offering last month. The company was launched in 2014, as it gained market share in the U.S., which has traditionally been dominated by Match Group, the owner of Tinder. Currently, the company’s two apps, Bumble and Badoo, are segmented by geography; Bumble’s primary user base is in North America and Badoo is focused on Europe. The revenue rose 46.6% on the Bumble app in the fourth quarter, far outpacing the 10.5% pace at Badoo. The average monthly users in Germany were 150% higher in the fourth quarter compared with the last year, and Bumble saw a usage bump in neighboring countries. The CEO pointed to South East Asia, Latin America, and Western Europe as targets for expansion.
Moreover, for the fourth quarter, the Total Paying Users grew 32.5% to 2.7 million, compared to 2.0 million. Total ARPPU has increased to $20.02 during the period, compared to $19.99. The company’s adjusted EBITDA has increased to $44.1 million, or 26.6% of revenue, compared to $21.9 million, or 17.3% of revenue. During fiscal 2020, the Total Paying Users rose 22.2% to 2.5 million, compared to 2.1 million and the total ARPPU was $18.89, compared to $19.22.
The company is predicting revenue to be in the range of $163 million to $165 million in the first quarter 2021, while Wall Street was forecasting $163 million, according to data compiled by Bloomberg. For the full year, Bumble expects the sales to be in the range of $716 million to $726 million, also ahead of expectations. For the first quarter of 2021, the company expects Adjusted EBITDA to be in the range of $41 to $42 million and full year of 2021, the company expects Adjusted EBITDA to be in the range of $173 to $178 million.