Total Revenue in 2023 Increased 16% to $1,051.8
Million
Full Year Bumble App Revenue Increased 22% to
$844.8 Million
Fourth Quarter Bumble App Paying Users
Increased 21% to 2.7 Million; Grew 83,000 Quarter Over Quarter
Bumble Inc. (NASDAQ: BMBL) today reported financial results for
the fourth quarter and full year ended December 31, 2023.
“Today, we announced solid full-year results and a bold plan to
transform Bumble and lead the company to its next phase of growth
and innovation,” said Lidiane Jones, CEO of Bumble Inc. “We are
taking significant and decisive actions that ensure our customers
remain at the center of everything we do as we relaunch Bumble App,
transform our organization and accelerate our product roadmap. We
believe these actions will strengthen our foundational capabilities
and enable us to continue delivering new and engaging user
experiences that create healthy and equitable relationships. I am
confident in our team’s ability to deliver Bumble’s next chapter of
growth as we sharpen our focus on execution.”
Fourth Quarter 2023 Financial and Operational
Highlights:
(All comparisons relative to the Fourth Quarter 2022)
- Total Revenue increased 13.2% to $273.6 million, compared to
$241.6 million. This includes a favorable impact of $3.4 million
from foreign currency movements year over year.
- Bumble App Revenue increased 15.7% to $220.7 million, compared
to $190.8 million. This includes a favorable impact of $1.6 million
from foreign currency movements year over year.
- Badoo App and Other Revenue increased 4.2% to $52.9 million,
compared to $50.8 million. This includes a favorable impact of $1.8
million from foreign currency movements year over year.
- Total Paying Users increased 16.4% to 4.0 million, compared to
3.4 million.
- Total Average Revenue per Paying User ("ARPPU") decreased to
$22.64, compared to $23.01.
- Net loss was $32.0 million, or (11.7)% of revenue, compared to
net loss of $159.2 million, or (65.9)% of revenue.
- Adjusted EBITDA was $73.7 million, or 26.9% of revenue,
compared to $60.5 million, or 25.0% of revenue.
Full Year 2023 Operational and Financial Highlights:
(All comparisons relative to the Full Year 2022)
- Revenue increased 16.4% to $1,051.8 million, compared to $903.5
million. This includes an unfavorable impact of $1.4 million from
foreign currency movements year over year.
- Bumble App Revenue Increased 21.7% to $844.8 million, compared
to $694.3 million. This includes an unfavorable impact of $2.9
million from foreign currency movements year over year.
- Badoo App and Other Revenue decreased 1.0% to $207.1 million,
compared to $209.2 million. This includes a favorable impact of
$1.5 million from foreign currency movements year over year.
- Total Paying Users increased 16.9% to 3.7 million, compared to
3.2 million.
- Total ARPPU did not change at $23.03.
- Net loss was $1.9 million, or (0.2)% of revenue, compared to
net loss of $114.1 million, or (12.6)% of revenue.
- Adjusted EBITDA was $275.6 million, or 26.2% of revenue,
compared to $226.9 million, or 25.1% of revenue.
“We surpassed $1 billion in revenue for 2023 and delivered on
our outlook for revenue and Adjusted EBITDA,” said Anu Subramanian,
Chief Financial Officer of Bumble Inc. “As we look to the year
ahead, we are focused on execution and setting the stage for the
next phase of growth. We are implementing a clear plan designed to
drive product velocity and reduce operational friction, which we
believe will enable us to invest in our key growth initiatives
while strengthening our margin profile and cash flow potential for
the years ahead.”
Key Operating Metrics:
The following metrics were calculated excluding paying users and
revenue generated from Official, advertising and partnerships or
affiliates and, for periods prior to the fourth quarter of 2023,
excluding paying users and revenue generated from Fruitz. Beginning
in the fourth quarter of 2023, paying users and revenue generated
from Fruitz are included in our key operating metrics. Prior period
information and key operating metrics have not been recast to
include paying users and revenue generated from Fruitz. Please
refer to the Definitions section for more information.
(in thousands, except ARPPU)
Quarter Ended December 31,
2023
Quarter Ended December 31,
2022
Year Ended December 31,
2023
Year Ended December 31,
2022
Bumble App Paying Users
2,687.9
2,221.1
2,517.4
2,002.2
Badoo App and Other Paying Users
1,281.2
1,188.2
1,203.3
1,179.7
Total Paying Users
3,969.1
3,409.3
3,720.7
3,181.9
Bumble App Average Revenue per Paying
User
$
27.37
$
28.64
$
27.97
$
28.90
Badoo App and Other Average Revenue per
Paying User
$
12.69
$
12.48
$
12.70
$
13.06
Total Average Revenue per Paying User
$
22.64
$
23.01
$
23.03
$
23.03
Balance Sheet:
As of December 31, 2023, total cash and cash equivalents were
$355.6 million and total debt was $620.9 million.
Share Repurchase Program:
During the fourth quarter of 2023, there was a total of $136
million in share repurchases under our previously announced $300.0
million share repurchase program. As of December 31, 2023, a total
of $143 million remained available under the share repurchase
program.
Transformation Plan:
Today, the Company announced that it intends to reduce its
global workforce by approximately 350 roles to better align its
operating model with future strategic priorities and to drive
stronger operating leverage. We expect to incur approximately $20
million to $25 million of non-recurring charges, consisting
primarily of employee severance, benefits, and related charges for
impacted employees, the majority of which will be recognized in the
first two quarters of 2024.
Information about Bumble's use of non-GAAP financial measures is
provided below under “Non-GAAP Financial Measures.”
Financial Outlook:
A reconciliation of Adjusted EBITDA to GAAP net earnings (loss)
and Adjusted EBITDA margin growth to GAAP net earnings (loss)
margin growth which is growth in GAAP net earnings (loss) as a
percentage of revenue has not been provided for the outlook
included herein 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.
The Company anticipates Total Revenue, Adjusted EBITDA and
Adjusted EBITDA margin for the quarter ending March 31, 2024 and
year ending December 31, 2024 to be:
First quarter 2024
- Total Revenue between $262 million and $268 million
- Bumble App Revenue between $211 million and $215 million
- Adjusted EBITDA between $67 million and $70 million,
representing 26% margin at the midpoint of the range
Full year 2024
- Total Revenue growth of 8% to 11%
- Bumble App Revenue growth of 9% to 11%
- Adjusted EBITDA margin growth of at least 300 basis points,
which excludes:
- Expected severance and other non-recurring charges related to
the transformation initiative of between $20 million and $25
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.
Conference Call and Webcast Information
Bumble will host a live webcast of its conference call to
discuss its fourth quarter and full year 2023 financial results at
4:30 p.m. Eastern Time today, February 27, 2024. 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
As used in this press release, unless otherwise noted or the
context requires otherwise, the following terms have the following
meanings. Our key metrics (Bumble App Paying Users, Badoo App and
Other Paying Users, Total Paying Users, Bumble App Average Revenue
per Paying User, Badoo App and Other Average Revenue per Paying
User, and Total Average Revenue per Paying User) were calculated
excluding paying users and revenue generated from Official,
advertising and partnerships or affiliates and, for periods prior
to the fourth quarter of 2023, excluding paying users and revenue
generated from Fruitz. Beginning in the fourth quarter of 2023,
paying users and revenue generated from Fruitz are included in our
key operating metrics.
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 or Total ARPPU is a metric
calculated based on Total Revenue in any measurement period 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 or Bumble For Friends app subscription plan and/or
in-app purchases on Bumble app or Bumble For Friends app in the
relevant period.
Bumble App Paying User is a user that has purchased or renewed a
Bumble app or Bumble For Friends app subscription plan and/or made
an in-app purchase on Bumble app or Bumble For Friends 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 or Bumble App ARPPU
is a metric 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 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, or made a 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 or Badoo App
and Other ARPPU is a metric calculated based on Badoo App and Other
Revenue in any measurement period 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. We believe Adjusted EBITDA provides
visibility to the underlying continuing operating performance by
excluding the impact of certain expenses, including income tax
(benefit) provision, interest (income) expense, net, depreciation
and amortization expense, stock-based compensation expenses,
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. We
also provide Adjusted EBITDA margin, which is calculated as
Adjusted EBITDA divided by revenue. 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 (used in) 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, effectuate
discretionary share repurchases 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, net, depreciation and amortization expense, 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.
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 the current views of management of Bumble
Inc. with respect to, among other things, our operations, including
the recently announced plan to implement a global workforce
reduction and restructuring of our operations and its expected
impact, our financial performance, our industry and 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:
- the risk that the costs and charges related to our recently
announced plan to implement a global workforce reduction and
restructuring of our operations may be greater than anticipated or
incurred in different periods than anticipated
- the risk that our restructuring efforts may not generate their
intended benefits to the extent or as quickly as anticipated
- 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
- our ability to maintain the value and reputation of our
brands
- risks relating to changes to our existing brands and products,
or the introduction or acquisition of new brands or products
- risks relating to certain of our international operations,
including geopolitical conditions and successful expansion into new
markets
- the impact of data security breaches or cyber attacks on our
systems and the costs of remediation related to any such
incidents
- challenges with properly managing the use of artificial
intelligence
- 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
- our substantial indebtedness
- affiliates of Blackstone Inc.’s (“Blackstone”) and our
Founder’s control of us
- the outsized voting rights of affiliates of Blackstone and our
Founder
- changes in business or macroeconomic conditions, including the
impact of 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, geopolitical events, political
unrest, armed conflicts, including conflicts in Eastern Europe and
the Middle East, extreme weather events or natural disasters
- foreign currency exchange rate fluctuations
For additional information on these and other factors that could
cause Bumble’s actual results to differ materially from expected
results, please see our filings with the Securities and Exchange
Commission (the “SEC”), including our Annual Report on Form 10-K
for the year ended December 31, 2022, as such factors may be
updated from time to time in our subsequent periodic filings, 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, Bumble For Friends,
Badoo, Fruitz and Official. The Bumble platform enables people to
build healthy and equitable relationships, through Kind
Connections. Founded by Whitney Wolfe Herd in 2014, Bumble was one
of the first dating apps built with women at the center and
connects people across dating (Date mode), friendship (BFF mode)
and professional networking (Bizz mode). Bumble For Friends app is
a friendship app where people in all stages of life can meet people
nearby and create meaningful platonic connections. Badoo, which was
founded in 2006, was one of the pioneers of web and mobile
free-to-use dating products. Fruitz, founded in 2017, encourages
honesty and transparency by sharing dating intentions from the
first touch point. Official, founded in 2020, is an app that is
intended to help couples build healthy and lasting habits in their
romantic relationships.
Bumble Inc.
Consolidated Balance
Sheets
(in thousands, except share
and per share information)
December 31, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
355,642
$
402,559
Accounts receivable, net
102,677
66,930
Other current assets
34,732
31,882
Total current assets
493,051
501,371
Right-of-use assets
15,425
17,419
Property and equipment, net
12,462
14,467
Goodwill
1,585,750
1,579,770
Intangible assets, net
1,484,290
1,524,428
Deferred tax assets, net
27,029
24,050
Other noncurrent assets
7,120
31,116
Total assets
$
3,625,127
$
3,692,621
LIABILITIES AND SHAREHOLDERS'
EQUITY
Accounts payable
$
4,611
$
3,367
Deferred revenue
48,749
46,108
Accrued expenses and other current
liabilities
185,799
156,443
Current portion of long-term debt, net
5,750
5,750
Total current liabilities
244,909
211,668
Long-term debt, net
615,176
619,223
Deferred tax liabilities, net
5,673
8,077
Payable to related parties pursuant to a
tax receivable agreement
407,389
385,486
Other long-term liabilities
14,707
14,588
Total liabilities
$
1,287,854
$
1,239,042
Commitments and contingencies
Shareholders’ equity:
Class A common stock (par value $0.01 per
share, 6,000,000,000 shares authorized; 138,520,102 shares issued
and 130,687,629 shares outstanding as of December 31, 2023;
129,774,299 shares issued and outstanding as of December 31,
2022)
1,385
1,298
Class B common stock (par value $0.01 per
share, 1,000,000 shares authorized; 20 shares issued and
outstanding as of December 31, 2023 and December 31, 2022,
respectively)
—
—
Preferred stock (par value $0.01;
600,000,000 shares authorized; no shares issued and outstanding as
of December 31, 2023 and December 31, 2022, respectively)
—
—
Treasury stock (7,832,473 and no shares as
of December 31, 2023 and December 31, 2022, respectively)
(73,764
)
—
Additional paid-in capital
1,772,449
1,691,911
Accumulated deficit
(144,084
)
(139,871
)
Accumulated other comprehensive income
79,029
74,477
Total Bumble Inc. shareholders’
equity
1,635,015
1,627,815
Noncontrolling interests
702,258
825,764
Total shareholders’ equity
2,337,273
2,453,579
Total liabilities and shareholders’
equity
$
3,625,127
$
3,692,621
Bumble Inc.
Consolidated Statements of
Operations
(in thousands, except per
share data)
Quarter Ended
December 31,
2023
Quarter Ended
December 31,
2022
Year Ended
December 31,
2023
Year Ended
December 31,
2022
Revenue
$
273,637
$
241,628
$
1,051,830
$
903,503
Operating costs and expenses:
Cost of revenue
80,469
67,788
307,835
249,490
Selling and marketing expense
72,613
68,641
270,380
249,269
General and administrative expense
79,943
208,795
221,649
308,855
Product development expense
30,271
27,965
130,565
109,020
Depreciation and amortization expense
17,203
15,878
68,028
89,713
Total operating costs and
expenses
280,499
389,067
998,457
1,006,347
Operating earnings (loss)
(6,862
)
(147,439
)
53,373
(102,844
)
Interest income (expense), net
(4,949
)
(5,617
)
(21,534
)
(24,063
)
Other income (expense), net
(20,259
)
(8,540
)
(26,537
)
16,189
Income (loss) before income
taxes
(32,070
)
(161,596
)
5,302
(110,718
)
Income tax benefit (provision)
58
2,350
(7,170
)
(3,406
)
Net earnings (loss)
(32,012
)
(159,246
)
(1,868
)
(114,124
)
Net earnings (loss) attributable to
noncontrolling interests
(5,986
)
(48,676
)
2,345
(34,378
)
Net earnings (loss) attributable to Bumble
Inc. shareholders
$
(26,026
)
$
(110,570
)
$
(4,213
)
$
(79,746
)
Net earnings (loss) per share
attributable to Bumble Inc. shareholders
Basic earnings (loss) per share
$
(0.19
)
$
(0.85
)
$
(0.03
)
$
(0.62
)
Diluted earnings (loss) per share
$
(0.19
)
$
(0.85
)
$
(0.03
)
$
(0.62
)
Bumble Inc.
Consolidated Statements of
Cash Flows
(in thousands)
Quarter Ended
December 31,
2023
Quarter Ended
December 31,
2022
Year Ended
December 31,
2023
Year Ended
December 31,
2022
Cash flows from operating
activities:
Net earnings (loss)
$
(32,012
)
$
(159,246
)
$
(1,868
)
$
(114,124
)
Adjustments to reconcile net earnings
(loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense
17,203
15,878
68,028
89,713
Impairment loss
—
141,000
—
145,388
Gain on settlement of lease
liabilities
—
(2,140
)
—
(2,140
)
Changes in fair value of interest rate
swap
4,777
1,318
13,806
(17,086
)
Changes in fair value of contingent
earn-out liability
(5,328
)
(735
)
(29,569
)
(47,134
)
Tax receivable agreement liability
remeasurement expense
10,341
5,332
10,341
5,332
Non-cash lease expense
878
1,060
3,518
4,539
Deferred income tax
1,714
1,047
(7,166
)
(5,454
)
Stock-based compensation expense
20,678
33,829
104,338
111,008
Net foreign exchange difference
4,223
24,692
923
(3,362
)
Other, net
9,825
(11,274
)
11,065
1,189
Changes in assets and liabilities:
Accounts receivable
(3,272
)
(15,547
)
(36,031
)
(20,723
)
Other current assets
(1,136
)
2,703
(2,920
)
22,964
Accounts payable
(689
)
(4,156
)
1,775
(13,997
)
Deferred revenue
(556
)
1,210
2,593
5,889
Legal liabilities
43,765
19,125
45,240
11,995
Lease liabilities
(939
)
(2,747
)
(3,930
)
(5,984
)
Accrued expenses and other current
liabilities
(6,179
)
(111
)
1,485
(34,991
)
Other, net
124
(66
)
458
(81
)
Net cash provided by (used in)
operating activities
63,417
51,172
182,086
132,941
Cash flows from investing
activities:
Capital expenditures
(2,166
)
(5,022
)
(14,935
)
(16,333
)
Acquisition of business, net of cash
acquired
—
—
(9,820
)
(69,720
)
Net cash provided by (used in)
investing activities
(2,166
)
(5,022
)
(24,755
)
(86,053
)
Cash flows from financing
activities:
Repayment of term loan
(1,437
)
(1,437
)
(5,750
)
(5,750
)
Distributions paid to noncontrolling
interest holders
(23
)
—
(19,310
)
—
Share repurchases
(91,940
)
—
(112,830
)
—
Purchase of Common Units
(44,309
)
—
(44,309
)
—
Withholding tax paid on behalf of
employees on stock-based awards
(2,827
)
(1,852
)
(16,692
)
(9,204
)
Net cash provided by (used in)
financing activities
(140,536
)
(3,289
)
(198,891
)
(14,954
)
Effects of exchange rate changes on cash
and cash equivalents
(4,163
)
(7,708
)
(6,280
)
5,933
Net increase (decrease) in cash and
cash equivalents and restricted cash
(83,448
)
35,153
(47,840
)
37,867
Cash and cash equivalents and restricted
cash, beginning of the period
442,650
371,889
407,042
369,175
Cash and cash equivalents and
restricted cash, end of the period
$
359,202
$
407,042
$
359,202
$
407,042
Less restricted cash
(3,560
)
(4,483
)
(3,560
)
(4,483
)
Cash and cash equivalents, end of the
period
$
355,642
$
402,559
$
355,642
$
402,559
Bumble Inc.
Reconciliation of GAAP to
NON-GAAP Financial Measures
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)
Quarter Ended
December 31,
2023
Quarter Ended
December 31,
2022
Year Ended
December 31,
2023
Year Ended
December 31,
2022
Net earnings (loss)
$
(32,012
)
$
(159,246
)
$
(1,868
)
$
(114,124
)
Add back:
Income tax (benefit) provision
(58
)
(2,350
)
7,170
3,406
Interest (income) expense, net
4,949
5,617
21,534
24,063
Depreciation and amortization expense
17,203
15,878
68,028
89,713
Stock-based compensation expense
20,678
33,829
104,338
111,008
Employer costs related to stock-based
compensation(1)
510
426
4,535
2,054
Litigation costs, net of insurance
reimbursements(2)
47,044
18,645
71,918
22,734
Foreign exchange (gain) loss (3)
4,624
2,371
2,185
(3,679
)
Changes in fair value of interest rate
swaps(4)
4,777
1,318
13,806
(17,086
)
Transaction and other costs(5)
315
(1,643
)
2,309
5,226
Changes in fair value of contingent
earn-out liability
(5,328
)
(735
)
(29,569
)
(47,134
)
Changes in fair value of investments
665
56
843
18
Tax receivable agreement liability
remeasurement expense(6)
10,341
5,332
10,341
5,332
Impairment loss(7)
—
141,000
—
145,388
Adjusted EBITDA
$
73,708
$
60,498
$
275,570
$
226,919
Net earnings (loss) margin
(11.7
)%
(65.9
)%
(0.2
)%
(12.6
)%
Adjusted EBITDA margin
26.9
%
25.0
%
26.2
%
25.1
%
Net cash provided by operating
activities
$
63,417
$
51,172
$
182,086
$
132,941
Less:
Capital expenditures
(2,166
)
(5,022
)
(14,935
)
(16,333
)
Free cash flow
$
61,251
$
46,150
$
167,151
$
116,608
Operating cash flow conversion
(198.1
)%
(32.1
)%
*
(116.5
)%
Free cash flow conversion
83.1
%
76.3
%
60.7
%
51.4
%
* Not meaningful
(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. Includes amounts accrued with respect to
the litigation related to the Biometric Information Privacy Act,
the mass arbitrations and the Company’s class action lawsuit
related to the secondary public stock offering, representing
management’s then-current estimated probable loss for this
matter.
(3)
Represents foreign exchange (gain) loss
due to foreign currency transactions.
(4)
Represents fair value (gain) loss on
interest rate swaps.
(5)
Represents transaction costs related to
acquisitions, secondary offerings, and share repurchases such as
legal, accounting, advisory fees and other related costs. Amount in
2022 also includes employee-related restructuring costs directly
associated with our decision to discontinue our operations in
Russia including severance benefits, relocation costs and advisory
fees.
(6)
Represents recognized adjustments to the
tax receivable agreement liability.
(7)
Represents impairment loss of the Badoo
brand and a right-of-use asset related to our Moscow office in
2022.
Supplementary Information
Stock-Based Compensation Expense
(in thousands)
Quarter Ended
December 31, 2023
Quarter Ended
December 31, 2022
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Cost of revenue
$
1,253
$
1,093
$
4,054
$
3,819
Selling and marketing expense
2,611
3,517
9,803
8,064
General and administrative expense
7,980
19,616
52,008
63,575
Product development expense
8,834
9,603
38,473
35,550
Total stock-based compensation
expense
$
20,678
$
33,829
$
104,338
$
111,008
Reconciliation of GAAP costs and expenses to non-GAAP costs
and expenses by function
(In thousands)
Quarter Ended
December 31, 2023
Quarter Ended
December 31, 2022
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Cost of revenue GAAP
$
80,469
$
67,788
$
307,835
$
249,490
Stock-based compensation expense
(1,253
)
(1,093
)
(4,054
)
(3,819
)
Payroll tax expense related to stock-based
compensation
(24
)
(17
)
(221
)
(101
)
Transaction and other costs
—
6
—
(119
)
Cost of revenue non-GAAP
$
79,192
$
66,684
$
303,560
$
245,451
(In thousands)
Quarter Ended
December 31, 2023
Quarter Ended
December 31, 2022
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Selling and marketing expense
GAAP
$
72,613
$
68,641
$
270,380
$
249,269
Stock-based compensation expense
(2,611
)
(3,517
)
(9,803
)
(8,064
)
Payroll tax expense related to stock-based
compensation
(33
)
(37
)
(343
)
(230
)
Transaction and other costs
—
—
—
(34
)
Selling and marketing expense
non-GAAP
$
69,969
$
65,087
$
260,234
$
240,941
(In thousands)
Quarter Ended
December 31, 2023
Quarter Ended
December 31, 2022
Year Ended
December 31, 2023
Year Ended
December 31, 2022
General and administrative expense
GAAP
$
79,943
$
208,795
$
221,649
$
308,855
Changes in fair value of contingent
earn-out liability
5,328
735
29,569
47,134
Litigation costs, net of insurance
proceeds
(47,044
)
(18,645
)
(71,918
)
(22,734
)
Stock-based compensation expense
(7,980
)
(19,616
)
(52,008
)
(63,575
)
Payroll tax expense related to stock-based
compensation
(168
)
(179
)
(1,406
)
(649
)
Transaction and other costs
(315
)
1,602
(2,309
)
(4,055
)
Impairment loss
—
(141,000
)
—
(145,388
)
General and administrative expense
non-GAAP
$
29,764
$
31,692
$
123,577
$
119,588
(In thousands)
Quarter Ended
December 31, 2023
Quarter Ended
December 31, 2022
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Product development expense
GAAP
$
30,271
$
27,965
$
130,565
$
109,020
Stock-based compensation expense
(8,834
)
(9,603
)
(38,473
)
(35,550
)
Payroll tax expense related to stock-based
compensation
(285
)
(193
)
(2,565
)
(1,074
)
Transaction and other costs
—
35
—
(1,018
)
Product development expense
non-GAAP
$
21,152
$
18,204
$
89,527
$
71,378
(In thousands)
Quarter Ended
December 31, 2023
Quarter Ended
December 31, 2022
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Total operating costs and expenses
GAAP
$
280,499
$
389,067
$
998,457
$
1,006,347
Depreciation and amortization expense
(17,203
)
(15,878
)
(68,028
)
(89,713
)
Changes in fair value of contingent
earn-out liability
5,328
735
29,569
47,134
Litigation costs, net of insurance
proceeds
(47,044
)
(18,645
)
(71,918
)
(22,734
)
Stock-based compensation expense
(20,678
)
(33,829
)
(104,338
)
(111,008
)
Payroll tax expense related to stock-based
compensation
(510
)
(426
)
(4,535
)
(2,054
)
Transaction and other costs
(315
)
1,643
(2,309
)
(5,226
)
Impairment loss
—
(141,000
)
—
(145,388
)
Total operating costs and expenses
non-GAAP
$
200,077
$
181,667
$
776,898
$
677,358
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version on businesswire.com: https://www.businesswire.com/news/home/20240227354984/en/
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