Austin’s Bumble Reports Growth in Revenue and Paid Users
Austin-based dating app company Bumble saw significant growth in revenue and paid user numbers in 2020 as people turned to dating apps for social connection amid the pandemic of coronavirus.
In its first earnings report since going public with a $ 2.5 billion IPO last month, Bumble topped Wall Street projections for fourth-quarter earnings and earnings per share.
Bumble made an explosive debut on Wall Street in February, seeing its shares climb more than 80% on day one. The company closed its initial public offering on February 16 at $ 2.5 billion, making it the largest IPO in Austin’s history.
Founder and CEO Whitney Wolfe Herd started Bumble in 2014 after working for dating app company Tinder.
The company operates two apps, Bumble and Badoo. The Bumble app works the same as apps like Tinder, where users swipe left or right on preferences, except the app only allows women to initiate a conversation or contact. The company started out as a dating app, but has since expanded into a women-centric social networking platform with friends and business networks. Badoo is a dating-focused social network primarily used in Europe and Latin America.
“We are committed to our mission, our customers and the advancement of the business, which has fueled our strong fourth quarter and full year 2020 results,” Wolfe Herd said in a written statement Wednesday. “The significant increase in our revenue and paid users is a direct result of the dedication and remarkable agility of our team during a difficult pandemic. Going forward, we remain focused on growth, investing in our users and expanding internationally. Our IPO was a crucial milestone, but we are just getting started and are excited about the next chapter of our journey. “
Dating apps and other social connection platforms have seen growth amid the pandemic, as users seek ways to connect in a pandemic world. During a call with investors on Wednesday, Wolfe Herd said the company is looking at the opportunity presented by the pandemic, where users want to socialize and connect and are turning to digital options for dating and friendship. .
Bumble generates revenue through a subscription model on its apps, which offer free features and charge for additional services.
Bumble said its revenue increased 31% to $ 165.6 million in the fourth quarter. Analysts had forecast $ 163.3 million. The company reported a net loss of $ 26.1 million, or 1 cent per share, for the quarter. Analysts were forecasting a loss of 9 to 14 cents per share.
For the full year, Bumble reported revenue of $ 582.2 million, an increase of 19% from $ 488.9 million in 2019, and a net profit loss of $ 142.8 million.
“During the fourth quarter, we demonstrated our ability to continue to grow the business and quickly adapt to the pandemic,” said Anu Subramanian, chief financial officer of Bumble, in a written statement. “Looking ahead, we believe we are well positioned to drive user growth and capitalize on our significant market opportunity. “
The Bumble app generated revenue growth in the fourth quarter, grossing $ 105.8 million, while Badoo grossed $ 59.8 million, according to the company. For the full year, the Bumble app generated $ 361.02 million in revenue and Badoo $ 221.7 million.
The company said paid users rose 32.5% to 2.7 million in the fourth quarter, from 2 million the year before.
The company didn’t report the total number of users, including non-paid users, but previously said it had 42.1 million monthly active users as of September 2020.
Bumble said it has seen an increase in the number of paid users and an increase in the number of users in its North American and international market.
During a call with investors, Wolfe Herd said the pandemic is cutting back on typical in-person meetings, prompting users to try the app for relationships and friendships.
Wolfe Herd said the company expects to increase revenue and improve profitability as it grows.
“Our short-term goal is to make investments and grow our community. Our product technology is based on a significant market opportunity model characterized by a rare combination of growth and profitability in sales,” he said. she declared.
Wolfe Herd said she also expects the company to be well positioned as the economy begins to recover from the pandemic, especially as people who avoided face-to-face meetings amid the pandemic seek to return to in-person interactions.
The company said it expects revenue for the current quarter to be $ 163 million to $ 165 million, and annual revenue for 2021 to be $ 716 million to $ 726 million.
“There has never been a time in recent history that comes with such a demand to meet new people. The whole world has gone through an incredibly lonely time,” said Wolfe Herd. “We believe that the digital first approach endures in a post-pandemic world where people have found that the safety component, the accessibility and the opportunities that they get by meeting on Bumble or on Badoo have them so well. served and we believe that the digital approach will only enhance our opportunity. ”