Bumble Inc. (NASDAQ: BMBL), the parent company of Bumble, Badoo,
and Fruitz, today reported financial results for the third quarter
ended September 30, 2022.
"Our third quarter results support our view that
love and connection are fundamental and enduring human needs,” said
Whitney Wolfe Herd, Founder and CEO of Bumble Inc. “We continue to
see resilient usage and engagement trends across our family of
apps. Bumble App continued to gain share across most major markets
while driving record paying user additions and we also made
encouraging progress with Badoo. We remain confident that we are
well positioned to capitalize on the long term-opportunity ahead of
us."
Third Quarter 2022 Financial and Operational
Highlights:(All comparisons relative to the Third
Quarter 2021)
- Total Revenue
increased 16.8% to $232.6 million, compared to $199.1 million. This
includes an unfavorable impact of $14.0 million from foreign
currency movements year over year.
- Bumble App Revenue grew 27.9% to
$180.6 million. This includes an unfavorable impact of $7.0
million from foreign currency movements year over year.
- Badoo App and Other Revenue declined
10.2% to $52.0 million. This includes an unfavorable impact of
$7.0 million from foreign currency movements year over year.
- Total Paying Users
increased to 3.3 million, compared to 2.9 million.
- Total Average
Revenue per Paying User ("ARPPU") increased to $22.96, compared to
$22.81.
- Net earnings was
$26.4 million or 11.4% of revenue, compared to net loss of $10.4
million, or (5.2)% of revenue.
- Adjusted EBITDA
was $61.8 million, or 26.6% of revenue, compared to $54.5
million, or 27.4% of revenue.
“Our business continued to perform well, even as
the macro environment became more challenging,” said Anu
Subramanian, Chief Financial Officer of Bumble Inc. “We delivered
solid top-line growth, while exceeding our adjusted EBITDA outlook
in the third quarter. We will continue to operate with discipline
as we strive to deliver profitable long-term growth for our
shareholders.”
Key Operating Metrics:
The following metrics were calculated excluding paying users and
revenue generated from Fruitz. Please refer to the Definitions
section for more information.
(In thousands, except
ARPPU) |
Three MonthsEndedSeptember 30, 2022 |
|
|
Three MonthsEndedSeptember 30, 2021 |
|
Key Operating
Metrics |
|
|
|
|
|
Bumble App Paying Users |
|
2,088.1 |
|
|
|
1,532.6 |
|
Badoo App and Other Paying
Users |
|
1,202.2 |
|
|
|
1,333.4 |
|
Total Paying Users |
|
3,290.3 |
|
|
|
2,866.0 |
|
Bumble App Average Revenue per
Paying User |
$ |
28.84 |
|
|
$ |
30.71 |
|
Badoo App and Other Average
Revenue per Paying User |
$ |
12.75 |
|
|
$ |
13.73 |
|
Total Average Revenue per Paying
User |
$ |
22.96 |
|
|
$ |
22.81 |
|
Balance Sheet:
As of September 30, 2022, total cash and cash equivalents
were $365.1 million and total debt was $626.0 million.
Information about Bumble's use of non-GAAP financial measures is
provided below under “Non-GAAP Financial Measures.”
Financial Outlook:
The company anticipates total revenue and
adjusted EBITDA for the fourth quarter ending December 31, 2022 to
be:
Fourth quarter 2022:
- Total Revenue in
the range of $232 million to $237 million, which includes:
- An estimated
unfavorable impact of $16 million from foreign currency movements,
an increase of $6 million since the prior earnings call.
- Impact from the
conflict in Ukraine of $5 million, primarily in Badoo App and Other
Revenue.
- Bumble App Revenue
of $184 million to $187 million. This includes an estimated
unfavorable impact of $9 million from foreign currency movements,
an increase of $4 million since the prior earnings call.
- Adjusted EBITDA in
the range of $57 million to $59 million.
Actual results may differ materially from
Bumble’s financial outlook as a result of, among other things, the
factors described under “Forward-Looking Statements” below.
With regards to the adjusted EBITDA outlook
provided above, a reconciliation to GAAP net earnings (loss) has
not been provided as the quantification of certain items included
in the calculation of GAAP net earnings (loss) cannot be calculated
or predicted at this time without unreasonable efforts. For
example, the non-GAAP adjustment for stock-based compensation
expense requires additional inputs such as number of shares granted
and market price that are not currently ascertainable, and the
non-GAAP adjustment for certain legal, tax and regulatory reserves
and expenses depends on the timing and magnitude of these expenses
and cannot be accurately forecasted. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information, which could have a potentially
unpredictable, and potentially significant, impact on its future
GAAP financial results.
Revision of Previously Issued Financial
Statements:
Certain prior period amounts included in this
release have been revised. During the current reporting period, the
Company identified certain prior period adjustments, including with
respect to the recognition and presentation of debt issuance costs
and refunds from third-party aggregators, for the 2020 annual
financial statements, 2021 quarterly and annual financial
statements and quarterly financial statements for the three months
ended June 30, 2022 and March 31, 2022. These revisions were not
material to the prior periods and do not affect the ongoing
operations of the Company or adjusted EBITDA. A quantification of
the impact of these adjustments on each financial statement line
item will be included in the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 2022.
Conference Call and Webcast Information
Bumble will host a live webcast of its
conference call to discuss its third quarter 2022 financial results
at 4:30 p.m. Eastern Time today, November 9, 2022. A webcast of the
call and other information related to the call will be accessible
on the Investors section of the Company’s website at
https://ir.bumble.com. A webcast replay will be available
approximately two hours after the conclusion of the live event.
Definitions
Total Revenue is the sum of Bumble App Revenue and Badoo App and
Other Revenue.
Total Paying Users is the sum of Bumble App
Paying Users and Badoo App and Other Paying Users.
Total Average Revenue per Paying User is
calculated based on Total Revenue in any measurement period,
excluding any revenue generated from Fruitz, advertising and
partnerships or affiliates, divided by the Total Paying Users in
such period divided by the number of months in the period.
Bumble App Revenue is revenue derived from
purchases or renewals of a Bumble app subscription plan and/or
in-app purchases on Bumble app in the relevant period.
Bumble App Paying User is a user that has
purchased or renewed a Bumble subscription plan and/or made an
in-app purchase on the Bumble app in a given month. We calculate
Bumble App Paying Users as a monthly average, by counting the
number of Bumble App Paying Users in each month and then dividing
by the number of months in the relevant measurement period.
Bumble App Average Revenue per Paying User is
calculated based on Bumble App Revenue in any measurement period,
divided by Bumble App Paying Users in such period divided by the
number of months in the period.
Badoo App and Other Revenue is revenue derived
from purchases or renewals of a Badoo app subscription plan and/or
in-app purchases on Badoo app in the relevant period, purchases on
one of our other apps that we owned and operated in the relevant
period, purchases on other third party apps that used our
technology in the relevant period and advertising, partnerships or
affiliates revenue in the relevant period.
Badoo App and Other Paying User is a user that
has purchased or renewed a subscription plan and/or made an in-app
purchase on the Badoo app in a given month (or made a purchase on
one of our other apps that we owned and operated in a given month
(excluding Fruitz), or purchase on other third-party apps that used
our technology in the relevant period). We calculate Badoo App and
Other Paying Users as a monthly average, by counting the number of
Badoo App and Other Paying Users in each month and then dividing by
the number of months in the relevant measurement period.
Badoo App and Other Average Revenue per Paying
User is calculated based on Badoo App and Other Revenue in any
measurement period, excluding any revenue generated from Fruitz,
advertising and partnerships or affiliates, divided by Badoo App
and Other Paying Users in such period divided by the number of
months in the period.
Non-GAAP Financial Measures
We report our financial results in accordance
with GAAP, however, management believes that certain non-GAAP
financial measures provide users of our financial information with
useful supplemental information that enables a better comparison of
our performance across periods. These measures include: adjusted
EBITDA, adjusted EBITDA margin, free cash flow and free cash flow
conversion. We believe adjusted EBITDA and adjusted EBITDA margin
provide visibility to the underlying continuing operating
performance by excluding the impact of certain expenses, including
income tax (benefit) provision, interest (income) expense,
depreciation and amortization, stock-based compensation expense,
employer costs related to stock-based compensation, foreign
exchange (gain) loss, changes in fair value of contingent earn-out
liability, interest rate swaps and investments in equity
securities, transaction and other costs, litigation costs net of
insurance reimbursements that arise outside of the ordinary course
of business, tax receivable agreement liability remeasurement
(benefit) expense and impairment loss, as management does not
believe these expenses are representative of our core earnings. In
addition to adjusted EBITDA and adjusted EBITDA margin, we believe
free cash flow and free cash flow conversion provide useful
information regarding how cash provided by operating activities
compares to the capital expenditures required to maintain and grow
our business, and our available liquidity, after funding such
capital expenditures, to service our debt, fund strategic
initiatives and strengthen our balance sheet, as well as our
ability to convert our earnings to cash. Additionally, we believe
such metrics are widely used by investors, securities analysis,
ratings agencies and other parties in evaluating liquidity and
debt-service capabilities. We calculate free cash flow and free
cash flow conversion using methodologies that we believe can
provide useful supplemental information to help investors better
understand underlying trends in our business.
Our non-GAAP financial measures may not be
comparable to similarly titled measures used by other companies,
have limitations as analytical tools and should not be considered
in isolation, or as substitutes for analysis of our operating
results as reported under GAAP. Additionally, we do not consider
our non-GAAP financial measures as superior to, or a substitute
for, the equivalent measures calculated and presented in accordance
with GAAP.
Adjusted earnings before interest, taxes,
depreciation and amortization (“adjusted EBITDA”) is defined as net
earnings (loss) excluding income tax (benefit) provision, interest
(income) expense, depreciation and amortization, stock-based
compensation expense, employer costs related to stock-based
compensation, foreign exchange (gain) loss, changes in fair value
of contingent earn-out liability, interest rate swaps and
investments in equity securities, transaction and other costs,
litigation costs net of insurance reimbursements that arise outside
of the ordinary course of business and tax receivable agreement
liability remeasurement (benefit) expense and impairment loss.
Adjusted EBITDA margin represents adjusted
EBITDA as a percentage of revenue.
Free cash flow is defined as net cash provided
by (used in) operating activities less capital expenditures.
Free cash flow conversion represents free cash
flow as a percentage of adjusted EBITDA.
Operating cash flow conversion represents net
cash provided by (used in) operating activities as a percentage of
net earnings (loss).
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include,
without limitation, statements reflecting our current views with
respect to, among other things, our operations, our financial
performance, our industry, and on our business and other
non-historical statements, including without limitation the
statements in the “Financial Outlook” section of this press
release. In some cases, you can identify these forward-looking
statements by the use of words such as “outlook,” “believe(s),”
“expect(s),” “potential,” “continue(s),” “may,” “will,” “should,”
“could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,”
“plan(s),” “estimate(s),” “anticipates,” “projection,” “will likely
result” and or the negative version of these words or other
comparable words of a future or forward-looking nature. Such
forward-looking statements are subject to various risks and
uncertainties. Accordingly, there are or will be important factors
that could cause actual outcomes or results to differ materially
from those indicated in these statements. These factors include,
but are not limited to, the following:
- our ability to
retain existing users or attract new users and to convert users to
paying users
- competition and
changes in the competitive landscape of our market
- our ability to
distribute our dating products through third parties, such as Apple
App Store or Google Play Store, and offset related fees
- the impact of
data security breaches or cyber attacks on our systems and the
costs of remediation related to any such incidents
- the continued
development and upgrading of our technology platform and our
ability to adapt to rapid technological developments and changes in
a timely and cost-effective manner
- our ability to
obtain, maintain, protect and enforce intellectual property rights
and successfully defend against claims of infringement,
misappropriation or other violations of third-party intellectual
property
- our ability to
comply with complex and evolving U.S. and international laws and
regulations relating to our business, including data privacy
laws
- foreign currency
exchange rate fluctuations
- risks relating
to certain of our international operations, including geopolitical
conditions and successful expansion into new markets
- the impact of
current developments in Russia, Ukraine and surrounding countries
on our business and users, including the impact of our decision to
discontinue our operations in Russia and remove our apps from the
Apple App Store and Google Play Store in Russia and Belarus
- affiliates of
Blackstone Inc.’s (“Blackstone”) and our Founder’s control of
us
- the outsized
voting rights of affiliates of Blackstone and our Founder
- the inability to
attract hire and retain a highly qualified and diverse workforce,
or maintain our corporate culture
- changes in
business or macroeconomic conditions, including the impact of the
Coronavirus Disease 2019 ("COVID-19") (and other widespread health
emergencies or pandemics) and measures taken in response, lower
consumer confidence in our business or in the online dating
industry generally, recessionary conditions, increased unemployment
rates, stagnant or declining wages, changes in inflation or
interest rates, political unrest, armed conflicts or natural
disasters
For additional information on these and other
factors that could cause Bumble’s actual results to differ
materially from expected results, please see our Annual Report on
Form 10-K for the year ended December 31, 2021, which was filed
with the Securities and Exchange Commission (the “SEC”) on March
16, 2022, as such factors may be updated from time to time in our
subsequent filings with the SEC, which are accessible on the SEC’s
website at www.sec.gov. The forward-looking statements included in
this press release are made only as of the date of this press
release, and we undertake no obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required
by law.
About Bumble
Bumble Inc. is the parent company of Bumble,
Badoo, and Fruitz. The Bumble platform enables people to connect
and build equitable and healthy relationships. Founded by CEO
Whitney Wolfe Herd in 2014, Bumble was one of the first dating apps
built with women at the center and connects people across dating
(Bumble Date), friendship (Bumble BFF) and professional networking
(Bumble Bizz). Badoo, which was founded in 2006, is one of the
pioneers of web and mobile dating products. Fruitz, founded in
2017, encourages open and honest communication of dating intentions
through playful fruit metaphors. For more information about Bumble,
please visit www.bumble.com and follow @Bumble on social
platforms.
Source: Bumble Inc.
Investor Contactir@team.bumble.com
Media Contactpress@team.bumble.com
Bumble Inc.Condensed
Consolidated Balance Sheets(In thousands, except
share and per share
information)(Unaudited)
|
September 30, 2022 |
|
|
December 31, 2021 |
|
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
365,105 |
|
|
$ |
369,175 |
|
Accounts receivable, net of
allowances |
|
56,524 |
|
|
|
47,538 |
|
Other current assets |
|
30,384 |
|
|
|
52,751 |
|
Total current
assets |
|
452,013 |
|
|
|
469,464 |
|
Right-of-use assets |
|
19,784 |
|
|
|
26,410 |
|
Property and equipment, net |
|
12,973 |
|
|
|
14,627 |
|
Goodwill |
|
1,576,266 |
|
|
|
1,540,112 |
|
Intangible assets, net |
|
1,673,776 |
|
|
|
1,696,798 |
|
Deferred tax assets, net |
|
23,106 |
|
|
|
19,572 |
|
Other noncurrent assets |
|
34,920 |
|
|
|
10,013 |
|
Total
assets |
$ |
3,792,838 |
|
|
$ |
3,776,996 |
|
LIABILITIES AND BUMBLE
INC. SHAREHOLDERS’ / BUZZ HOLDINGS L.P. OWNERS’
EQUITY |
|
|
|
|
|
Accounts payable |
$ |
10,504 |
|
|
$ |
19,169 |
|
Deferred revenue |
|
45,253 |
|
|
|
39,924 |
|
Accrued expenses and other
current liabilities |
|
78,477 |
|
|
|
111,482 |
|
Current portion of long-term
debt, net |
|
5,750 |
|
|
|
5,750 |
|
Total current
liabilities |
|
139,984 |
|
|
|
176,325 |
|
Long-term debt, net |
|
620,239 |
|
|
|
623,231 |
|
Deferred tax liabilities,
net |
|
9,398 |
|
|
|
— |
|
Payable to related parties
pursuant to a tax receivable agreement |
|
388,980 |
|
|
|
388,780 |
|
Other long-term liabilities |
|
72,288 |
|
|
|
119,246 |
|
Total
liabilities |
|
1,230,889 |
|
|
|
1,307,582 |
|
Commitments and
contingencies |
|
|
|
|
|
Bumble Inc. Shareholders’
/ Buzz Holdings L.P. Owners’ Equity: |
|
|
|
|
|
Class A common stock (par value
$0.01 per share, 6,000,000,000 shares authorized; 129,645,692 and
129,212,949 shares issued and outstanding as of September 30, 2022
and December 31, 2021, respectively) |
|
1,297 |
|
|
|
1,292 |
|
Class B common stock (par value
$0.01 per share, 1,000,000 shares authorized; 20 shares issued and
outstanding as of September 30, 2022 and December 31, 2021,
respectively) |
|
— |
|
|
|
— |
|
Preferred stock (par value $0.01;
authorized 600,000,000 shares; no shares issued and outstanding as
of September 30, 2022 and December 31, 2021, respectively) |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
1,659,765 |
|
|
|
1,586,781 |
|
Accumulated deficit |
|
(29,656 |
) |
|
|
(60,480 |
) |
Accumulated other comprehensive
income |
|
63,832 |
|
|
|
80,360 |
|
Total Bumble Inc.
shareholders’ / Buzz Holdings L.P. owners’ equity |
|
1,695,238 |
|
|
|
1,607,953 |
|
Noncontrolling interests |
|
866,711 |
|
|
|
861,461 |
|
Total shareholders’ /
owners’ equity |
|
2,561,949 |
|
|
|
2,469,414 |
|
Total liabilities and
shareholders’ / owners’ equity |
$ |
3,792,838 |
|
|
$ |
3,776,996 |
|
Bumble Inc.Condensed
Consolidated Statements of Operations(In
thousands, except per share / unit
information)(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022 |
|
|
Three Months Ended September 30, 2021 |
|
|
Nine Months Ended September 30, 2022 |
|
|
Nine Months Ended September 30, 2021 |
|
Revenue |
$ |
232,639 |
|
|
$ |
199,147 |
|
|
$ |
661,875 |
|
|
$ |
553,865 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
64,581 |
|
|
|
55,265 |
|
|
|
181,702 |
|
|
|
151,597 |
|
Selling and marketing expense |
|
64,316 |
|
|
|
55,105 |
|
|
|
180,628 |
|
|
|
151,654 |
|
General and administrative expense |
|
29,815 |
|
|
|
45,726 |
|
|
|
107,636 |
|
|
|
215,631 |
|
Product development expense |
|
25,828 |
|
|
|
24,231 |
|
|
|
73,479 |
|
|
|
84,197 |
|
Depreciation and amortization expense |
|
19,755 |
|
|
|
27,022 |
|
|
|
73,835 |
|
|
|
80,882 |
|
Total operating costs and
expenses |
|
204,295 |
|
|
|
207,349 |
|
|
|
617,280 |
|
|
|
683,961 |
|
Operating earnings
(loss) |
|
28,344 |
|
|
|
(8,202 |
) |
|
|
44,595 |
|
|
|
(130,096 |
) |
Interest income (expense) |
|
(6,866 |
) |
|
|
(5,676 |
) |
|
|
(18,446 |
) |
|
|
(18,861 |
) |
Other income (expense), net |
|
6,545 |
|
|
|
3,773 |
|
|
|
24,729 |
|
|
|
7,489 |
|
Income (loss) before
income taxes |
|
28,023 |
|
|
|
(10,105 |
) |
|
|
50,878 |
|
|
|
(141,468 |
) |
Income tax benefit
(provision) |
|
(1,618 |
) |
|
|
(280 |
) |
|
|
(5,756 |
) |
|
|
437,122 |
|
Net earnings
(loss) |
|
26,405 |
|
|
|
(10,385 |
) |
|
|
45,122 |
|
|
|
295,654 |
|
Net earnings (loss) attributable
to noncontrolling interests |
|
8,342 |
|
|
|
(3,052 |
) |
|
|
14,298 |
|
|
|
(26,603 |
) |
Net earnings (loss) attributable
to Bumble Inc. shareholders / Buzz Holdings L.P. owners |
$ |
18,063 |
|
|
$ |
(7,333 |
) |
|
$ |
30,824 |
|
|
$ |
322,257 |
|
Net earnings (loss) per
share / unit attributable to Bumble Inc. shareholders / Buzz
Holdings L.P. owners |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share /
unit |
$ |
0.14 |
|
|
$ |
(0.06 |
) |
|
$ |
0.24 |
|
|
$ |
1.57 |
|
Diluted earnings (loss) per share
/ unit |
$ |
0.14 |
|
|
$ |
(0.06 |
) |
|
$ |
0.23 |
|
|
$ |
1.53 |
|
Bumble Inc.Condensed
Consolidated Statements of Cash Flows(In
thousands)(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022 |
|
|
Three Months Ended September 30, 2021 |
|
|
Nine Months Ended September 30, 2022 |
|
|
Nine Months Ended September 30, 2021 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
$ |
26,405 |
|
|
$ |
(10,385 |
) |
|
$ |
45,122 |
|
|
$ |
295,654 |
|
Adjustments to reconcile net
earnings (loss) to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
19,755 |
|
|
|
27,022 |
|
|
|
73,835 |
|
|
|
80,882 |
|
Impairment loss |
|
— |
|
|
|
— |
|
|
|
4,388 |
|
|
|
— |
|
Loss on extinguishment of long term debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,398 |
|
Changes in fair value of interest rate swaps |
|
(4,774 |
) |
|
|
(46 |
) |
|
|
(18,404 |
) |
|
|
(2,789 |
) |
Changes in fair value of contingent earn-out liability |
|
(27,004 |
) |
|
|
5,221 |
|
|
|
(46,399 |
) |
|
|
77,659 |
|
Changes in fair value of investments in equity securities |
|
(38 |
) |
|
|
— |
|
|
|
(38 |
) |
|
|
— |
|
Non-cash lease expense |
|
1,106 |
|
|
|
1,390 |
|
|
|
3,479 |
|
|
|
4,247 |
|
Deferred income tax |
|
(2,608 |
) |
|
|
30 |
|
|
|
(6,501 |
) |
|
|
(443,096 |
) |
Stock-based compensation expense |
|
37,175 |
|
|
|
23,763 |
|
|
|
77,179 |
|
|
|
99,502 |
|
Net foreign exchange difference |
|
(8,878 |
) |
|
|
556 |
|
|
|
(14,413 |
) |
|
|
(2,257 |
) |
Other, net |
|
(1,245 |
) |
|
|
317 |
|
|
|
(1,140 |
) |
|
|
3,727 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(1,433 |
) |
|
|
20,784 |
|
|
|
(5,176 |
) |
|
|
(4,954 |
) |
Other current assets |
|
(815 |
) |
|
|
155 |
|
|
|
20,261 |
|
|
|
(5,284 |
) |
Accounts payable |
|
(684 |
) |
|
|
(4,508 |
) |
|
|
(9,841 |
) |
|
|
(13,124 |
) |
Deferred revenue |
|
782 |
|
|
|
1,713 |
|
|
|
4,679 |
|
|
|
7,773 |
|
Legal liabilities |
|
(10 |
) |
|
|
(8,004 |
) |
|
|
(7,130 |
) |
|
|
(45,631 |
) |
Accrued expenses and other current liabilities |
|
(681 |
) |
|
|
(4,095 |
) |
|
|
(38,088 |
) |
|
|
(35,721 |
) |
Other, net |
|
(51 |
) |
|
|
317 |
|
|
|
(44 |
) |
|
|
271 |
|
Net cash provided by
(used in) operating activities |
|
37,002 |
|
|
|
54,230 |
|
|
|
81,769 |
|
|
|
20,257 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(3,262 |
) |
|
|
(3,836 |
) |
|
|
(11,311 |
) |
|
|
(9,388 |
) |
Acquisition of business, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(69,720 |
) |
|
|
— |
|
Other, net |
|
— |
|
|
|
28 |
|
|
|
— |
|
|
|
31 |
|
Net cash provided by
(used in) investing activities |
|
(3,262 |
) |
|
|
(3,808 |
) |
|
|
(81,031 |
) |
|
|
(9,357 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of Class A common stock sold in initial
public offering, net of offering costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,358,371 |
|
Payments to purchase and retire common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,018,365 |
) |
Purchase of Common Units from Pre-IPO Common Unitholders in the
initial public offering |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(973,289 |
) |
Withholding tax paid on behalf of employees on stock-based
awards |
|
(1,158 |
) |
|
|
(9,338 |
) |
|
|
(7,352 |
) |
|
|
(9,338 |
) |
Proceeds from exercise of options |
|
— |
|
|
|
545 |
|
|
|
— |
|
|
|
545 |
|
Repayment of term loan |
|
(1,438 |
) |
|
|
(1,438 |
) |
|
|
(4,313 |
) |
|
|
(205,000 |
) |
Net cash provided by
(used in) financing activities |
|
(2,596 |
) |
|
|
(10,231 |
) |
|
|
(11,665 |
) |
|
|
152,924 |
|
Effects of exchange rate changes on cash and cash equivalents |
|
6,100 |
|
|
|
(637 |
) |
|
|
13,641 |
|
|
|
(535 |
) |
Net increase (decrease)
in cash and cash equivalents |
|
37,244 |
|
|
|
39,554 |
|
|
|
2,714 |
|
|
|
163,289 |
|
Cash and cash equivalents, beginning of the period |
|
334,645 |
|
|
|
252,021 |
|
|
|
369,175 |
|
|
|
128,286 |
|
Cash and cash equivalents
and restricted cash, end of the period |
|
371,889 |
|
|
|
291,575 |
|
|
|
371,889 |
|
|
|
291,575 |
|
Less restricted cash |
|
6,784 |
|
|
|
— |
|
|
|
6,784 |
|
|
|
— |
|
Cash and cash
equivalents, end of the period |
$ |
365,105 |
|
|
$ |
291,575 |
|
|
$ |
365,105 |
|
|
$ |
291,575 |
|
Bumble
Inc.Reconciliation of GAAP to NON-GAAP Financial
Measures(Unaudited)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA
and Reconciliation of Net Cash Provided By (Used in) Operating
Activities to Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
percentages) |
Three Months EndedSeptember 30, 2022 |
|
|
Three Months EndedSeptember 30, 2021 |
|
|
Nine Months EndedSeptember 30, 2022 |
|
|
Nine Months EndedSeptember 30, 2021 |
|
Net earnings (loss) |
$ |
26,405 |
|
|
$ |
(10,385 |
) |
|
$ |
45,122 |
|
|
$ |
295,654 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
provision |
|
1,618 |
|
|
|
280 |
|
|
|
5,756 |
|
|
|
(437,122 |
) |
Interest (income) expense |
|
6,866 |
|
|
|
5,676 |
|
|
|
18,446 |
|
|
|
18,861 |
|
Depreciation and
amortization |
|
19,755 |
|
|
|
27,022 |
|
|
|
73,835 |
|
|
|
80,882 |
|
Stock-based compensation
expense |
|
37,175 |
|
|
|
23,763 |
|
|
|
77,179 |
|
|
|
99,502 |
|
Employer costs related to
stock-based compensation(1) |
|
431 |
|
|
|
2,438 |
|
|
|
1,628 |
|
|
|
2,438 |
|
Litigation costs, net of
insurance reimbursements(2) |
|
249 |
|
|
|
2,019 |
|
|
|
4,089 |
|
|
|
3,794 |
|
Foreign exchange (gain)
loss(3) |
|
(1,551 |
) |
|
|
(2,011 |
) |
|
|
(6,050 |
) |
|
|
(6,042 |
) |
Changes in fair value of interest
rate swaps(4) |
|
(4,774 |
) |
|
|
(46 |
) |
|
|
(18,404 |
) |
|
|
(2,789 |
) |
Transaction and other
costs(5) |
|
2,705 |
|
|
|
2,208 |
|
|
|
6,869 |
|
|
|
21,630 |
|
Changes in fair value of
contingent earn-out liability |
|
(27,004 |
) |
|
|
5,221 |
|
|
|
(46,399 |
) |
|
|
77,659 |
|
Changes in fair value of
investments in equity securities |
|
(38 |
) |
|
|
(14 |
) |
|
|
(38 |
) |
|
|
(333 |
) |
Tax receivable agreement
liability remeasurement benefit(6) |
|
— |
|
|
|
(1,687 |
) |
|
|
— |
|
|
|
(1,687 |
) |
Impairment loss(7) |
|
— |
|
|
|
— |
|
|
|
4,388 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
61,837 |
|
|
$ |
54,484 |
|
|
$ |
166,421 |
|
|
$ |
152,447 |
|
Net earnings (loss)
margin(8) |
|
11.4 |
% |
|
|
(5.2 |
)% |
|
|
6.8 |
% |
|
|
53.4 |
% |
Adjusted EBITDA margin |
|
26.6 |
% |
|
|
27.4 |
% |
|
|
25.1 |
% |
|
|
27.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
$ |
37,002 |
|
|
$ |
54,230 |
|
|
$ |
81,769 |
|
|
$ |
20,257 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(3,262 |
) |
|
|
(3,836 |
) |
|
|
(11,311 |
) |
|
|
(9,388 |
) |
Free cash flow |
$ |
33,740 |
|
|
$ |
50,394 |
|
|
$ |
70,458 |
|
|
$ |
10,869 |
|
Operating cash flow
conversion |
|
140.1 |
% |
|
|
(522.2 |
)% |
|
|
181.2 |
% |
|
|
6.9 |
% |
Free cash flow conversion |
|
54.6 |
% |
|
|
92.5 |
% |
|
|
42.3 |
% |
|
|
7.1 |
% |
(1) |
|
Represents
employer portion of Social Security and Medicare payroll taxes
domestically, National Insurance contributions in the United
Kingdom and comparable costs internationally related to the
settlement of equity awards. |
(2) |
|
Represents certain litigation costs and insurance proceeds
associated with pending litigations or settlements of
litigation. |
(3) |
|
Represents foreign exchange (gain) loss due to foreign currency
transactions. |
(4) |
|
Represents fair value gain on interest rate swaps. |
(5) |
|
Represents transaction costs related to acquisitions and our
offerings (IPO, the Reorganization and the secondary offering) such
as legal, accounting, advisory fees and other related costs. Amount
for the nine months ended September 30, 2021 also includes a loss
on debt extinguishment related to the repayment of $200.0 million
under the Incremental Term Loan Facility. Amounts for 2022 also
include employee-related restructuring costs directly associated
with our decision to discontinue our operations in Russia including
severance benefits, relocation and advisory fees. |
(6) |
|
Represents changes in tax receivable agreement liability due to
tax rate changes and unrelated to exchanges of Common Units for
Class A shares. |
(7) |
|
Represents impairment loss of a right-of-use asset related to
our Moscow office. |
(8) |
|
Net earnings margin for the nine months ended September 30,
2021 includes a $441.5 million tax benefit related to the reversal
of a deferred tax liability due to a restructuring of the Company’s
international operations. |
Supplementary Information (Unaudited)
Stock-Based Compensation Expense
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
Three Months Ended September 30, 2022 |
|
|
Three Months Ended September 30, 2021 |
|
|
Nine Months Ended September 30, 2022 |
|
|
Nine Months Ended September 30, 2021 |
|
Cost of revenue |
$ |
807 |
|
|
$ |
808 |
|
|
$ |
2,726 |
|
|
$ |
3,019 |
|
Selling and marketing
expense |
|
3,779 |
|
|
|
2,545 |
|
|
|
4,547 |
|
|
|
10,186 |
|
General and administrative
expense |
|
23,080 |
|
|
|
11,287 |
|
|
|
45,627 |
|
|
|
49,155 |
|
Product development expense |
|
9,509 |
|
|
|
9,123 |
|
|
|
24,279 |
|
|
|
37,142 |
|
Total stock-based
compensation expense |
$ |
37,175 |
|
|
$ |
23,763 |
|
|
$ |
77,179 |
|
|
$ |
99,502 |
|
Reconciliation of GAAP costs and expenses to non-GAAP
costs and expenses by function
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
Three Months Ended September 30, 2022 |
|
|
Three Months Ended September 30, 2021 |
|
|
Nine Months Ended September 30, 2022 |
|
|
Nine Months Ended September 30, 2021 |
|
Cost of revenue GAAP |
$ |
64,581 |
|
|
$ |
55,265 |
|
|
$ |
181,702 |
|
|
$ |
151,597 |
|
Stock-based compensation
expense |
|
(807 |
) |
|
|
(808 |
) |
|
|
(2,726 |
) |
|
|
(3,019 |
) |
Payroll tax expense related to
stock-based compensation |
|
(22 |
) |
|
|
(117 |
) |
|
|
(84 |
) |
|
|
(117 |
) |
Transaction and other costs |
|
14 |
|
|
|
— |
|
|
|
(125 |
) |
|
|
— |
|
Cost of revenue
non-GAAP |
$ |
63,766 |
|
|
$ |
54,340 |
|
|
$ |
178,767 |
|
|
$ |
148,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
Three Months Ended September 30, 2022 |
|
|
Three Months Ended September 30, 2021 |
|
|
Nine Months Ended September 30, 2022 |
|
|
Nine Months Ended September 30, 2021 |
|
Selling and marketing expense GAAP |
$ |
64,316 |
|
|
$ |
55,105 |
|
|
$ |
180,628 |
|
|
$ |
151,654 |
|
Stock-based compensation
expense |
|
(3,779 |
) |
|
|
(2,545 |
) |
|
|
(4,547 |
) |
|
|
(10,186 |
) |
Payroll tax expense related to
stock-based compensation |
|
(27 |
) |
|
|
(334 |
) |
|
|
(197 |
) |
|
|
(334 |
) |
Transaction and other costs |
|
— |
|
|
|
— |
|
|
|
(34 |
) |
|
|
(11 |
) |
Selling and marketing
expense non-GAAP |
$ |
60,510 |
|
|
$ |
52,226 |
|
|
$ |
175,850 |
|
|
$ |
141,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
Three Months EndedSeptember 30, 2022 |
|
|
Three Months Ended September 30, 2021 |
|
|
Nine Months Ended September 30, 2022 |
|
|
Nine Months Ended September 30, 2021 |
|
General and administrative expense GAAP |
$ |
29,815 |
|
|
$ |
45,726 |
|
|
$ |
107,636 |
|
|
$ |
215,631 |
|
Changes in fair value of
contingent earn-out liability |
|
27,004 |
|
|
|
(5,221 |
) |
|
|
46,399 |
|
|
|
(77,659 |
) |
Litigation costs, net of
insurance proceeds |
|
(249 |
) |
|
|
(2,019 |
) |
|
|
(4,089 |
) |
|
|
(3,794 |
) |
Stock-based compensation
expense |
|
(23,080 |
) |
|
|
(11,287 |
) |
|
|
(45,627 |
) |
|
|
(49,155 |
) |
Payroll tax expense related to
stock-based compensation |
|
(113 |
) |
|
|
(699 |
) |
|
|
(470 |
) |
|
|
(699 |
) |
Transaction and other costs |
|
(2,882 |
) |
|
|
(2,208 |
) |
|
|
(5,657 |
) |
|
|
(18,221 |
) |
Impairment loss |
|
— |
|
|
|
— |
|
|
|
(4,388 |
) |
|
|
— |
|
General and
administrative expense non-GAAP |
$ |
30,495 |
|
|
$ |
24,292 |
|
|
$ |
93,804 |
|
|
$ |
66,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
Three Months EndedSeptember 30, 2022 |
|
|
Three Months EndedSeptember 30, 2021 |
|
|
Nine Months EndedSeptember 30, 2022 |
|
|
Nine Months EndedSeptember 30, 2021 |
|
Product development expense GAAP |
$ |
25,828 |
|
|
$ |
24,231 |
|
|
$ |
73,479 |
|
|
$ |
84,197 |
|
Stock-based compensation
expense |
|
(9,509 |
) |
|
|
(9,123 |
) |
|
|
(24,279 |
) |
|
|
(37,142 |
) |
Payroll tax expense related to
stock-based compensation |
|
(269 |
) |
|
|
(1,288 |
) |
|
|
(877 |
) |
|
|
(1,288 |
) |
Transaction and other costs |
|
163 |
|
|
|
— |
|
|
|
(1,053 |
) |
|
|
— |
|
Product development
expense non-GAAP |
$ |
16,213 |
|
|
$ |
13,820 |
|
|
$ |
47,270 |
|
|
$ |
45,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
Three Months EndedSeptember 30, 2022 |
|
|
Three Months EndedSeptember 30, 2021 |
|
|
Nine Months EndedSeptember 30, 2022 |
|
|
Nine Months EndedSeptember 30, 2021 |
|
Total costs and expenses GAAP |
$ |
204,295 |
|
|
$ |
207,349 |
|
|
$ |
617,280 |
|
|
$ |
683,961 |
|
Depreciation and amortization
expense |
|
(19,755 |
) |
|
|
(27,022 |
) |
|
|
(73,835 |
) |
|
|
(80,882 |
) |
Changes in fair value of
contingent earn-out liability |
|
27,004 |
|
|
|
(5,221 |
) |
|
|
46,399 |
|
|
|
(77,659 |
) |
Litigation costs, net of
insurance proceeds |
|
(249 |
) |
|
|
(2,019 |
) |
|
|
(4,089 |
) |
|
|
(3,794 |
) |
Stock-based compensation
expense |
|
(37,175 |
) |
|
|
(23,763 |
) |
|
|
(77,179 |
) |
|
|
(99,502 |
) |
Payroll tax expense related to
stock-based compensation |
|
(431 |
) |
|
|
(2,438 |
) |
|
|
(1,628 |
) |
|
|
(2,438 |
) |
Transaction and other costs |
|
(2,705 |
) |
|
|
(2,208 |
) |
|
|
(6,869 |
) |
|
|
(18,232 |
) |
Impairment loss |
|
— |
|
|
|
— |
|
|
|
(4,388 |
) |
|
|
— |
|
Total costs and expenses
non-GAAP |
$ |
170,984 |
|
|
$ |
144,678 |
|
|
$ |
495,691 |
|
|
$ |
401,454 |
|
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