Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Bumble Inc. Announces Second Quarter 2023 Results By: Bumble Inc. via Business Wire August 08, 2023 at 16:05 PM EDT Total Revenue Increased 18% to $260 Million Bumble App Revenue Increased 23% to $208 Million Bumble App Paying Users Increased 28% to 2.5 Million; Grew 139,000 Quarter Over Quarter Net Earnings of $9.3 Million, Adjusted EBITDA of $67.3 Million Bumble Inc. (NASDAQ: BMBL) today reported financial results for the second quarter ended June 30, 2023. “We believe our ability to deliver another strong quarter is a direct reflection of our commitment to creating Kind Connections for the millions of people using our products around the world,” said Whitney Wolfe Herd, Founder and CEO of Bumble Inc. “In addition to attracting a record number of paying users on Bumble, we’ve successfully launched BFF as a standalone offering, further stabilized Badoo, and expanded our portfolio of apps to meet the evolving needs of our members throughout their relationship journeys.” Second Quarter 2023 Financial and Operational Highlights: (All comparisons relative to the Second Quarter 2022) Total Revenue increased 18.5% to $259.7 million, compared to $219.2 million. This includes an unfavorable impact of $1.6 million from foreign currency movements year over year. Bumble App Revenue grew 23.4% to $208.0 million, compared to $168.5 million. This includes an unfavorable impact of $1.6 million from foreign currency movements year over year. Badoo App and Other Revenue increased 2.0% to $51.8 million, compared to $50.7 million. Total Paying Users increased to 3.6 million, compared to 3.0 million. Total Average Revenue per Paying User ("ARPPU") increased to $23.23, compared to $23.51. Net earnings were $9.3 million or 3.6% of revenue, compared to net loss of $5.0 million, or (2.3)% of revenue. Adjusted EBITDA was $67.3 million, or 25.9% of revenue, compared to $54.8 million, or 25.0% of revenue. “We exceeded our second quarter outlook by continuing to execute on our strategic priorities while maintaining strong financial discipline,” said Anu Subramanian, Chief Financial Officer of Bumble Inc. “We believe the momentum we are experiencing across our family of apps sets us up to deliver profitable 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 Months Ended June 30, 2023 Three Months Ended June 30, 2022 Bumble App Paying Users 2,457.8 1,924.5 Badoo App and Other Paying Users 1,175.5 1,096.2 Total Paying Users 3,633.3 3,020.7 Bumble App Average Revenue per Paying User $ 28.21 $ 29.18 Badoo App and Other Average Revenue per Paying User $ 12.83 $ 13.56 Total Average Revenue per Paying User $ 23.23 $ 23.51 Balance Sheet: As of June 30, 2023, total cash and cash equivalents were $381.0 million and total debt was $622.9 million. During the second quarter of 2023, we repurchased 1.3 million shares of our Class A common stock for $20.9 million under our previously announced $150.0 million share repurchase program approved by the Board of Directors. 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. Bumble anticipates Total Revenue, Adjusted EBITDA and Adjusted EBITDA margin for the third quarter ending September 30, 2023 and full year ending December 31, 2023 to be: Third quarter 2023: Total Revenue in the range of $274 million to $280 million, which includes: Bumble App Revenue of $221 million to $225 million. Adjusted EBITDA in the range of $71 million to $73 million. Full year 2023: Total Revenue in the range of $1,055 million to $1,072 million, which includes: Bumble App Revenue of $852 million to $863 million. Adjusted EBITDA margin growth of at least 100 basis points. 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. Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.” Conference Call and Webcast Information Bumble will host a live webcast of its conference call to discuss its second quarter 2023 financial results at 4:30 p.m. Eastern Time today, August 8, 2023. 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 a metric 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 app subscription plan and/or made an in-app purchase on 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 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 (excluding Fruitz) or made a purchase on one of our other apps that we owned and operated in a given month, 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 a metric 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. 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, depreciation and amortization, 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, 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. 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 and our industry 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 sanctions and 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 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, extreme weather events 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, 2022, which was filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2023, 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, Badoo, Fruitz and Official. The Bumble platform enables people to build healthy and equitable relationships, through Kind Connections. 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. Official is an app for couples that promotes open and honest communication between partners and was founded in 2020. Bumble Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share information) (Unaudited) June 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 381,019 $ 402,559 Accounts receivable, net 98,520 66,930 Other current assets 47,406 31,882 Total current assets 526,945 501,371 Right-of-use assets 16,741 17,419 Property and equipment, net 15,654 14,467 Goodwill 1,585,281 1,579,770 Intangible assets, net 1,508,036 1,524,428 Deferred tax assets, net 31,507 24,050 Other noncurrent assets 8,133 31,116 Total assets $ 3,692,297 $ 3,692,621 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 8,372 $ 3,367 Deferred revenue 48,110 46,108 Accrued expenses and other current liabilities 124,309 156,443 Current portion of long-term debt, net 5,750 5,750 Total current liabilities 186,541 211,668 Long-term debt, net 617,189 619,223 Deferred tax liabilities, net 10,718 8,077 Payable to related parties pursuant to a tax receivable agreement 416,754 385,486 Other long-term liabilities 14,763 14,588 Total liabilities 1,245,965 1,239,042 Commitments and contingencies Shareholders’ Equity: Class A common stock (par value $0.01 per share, 6,000,000,000 shares authorized; 137,771,696 shares issued and 136,451,324 shares outstanding as of June 30, 2023; 129,774,299 shares issued and outstanding as of December 31, 2022, respectively) 1,378 1,298 Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 20 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively) — — Preferred stock (par value $0.01; authorized 600,000,000 shares; no shares issued and outstanding as of June 30, 2023, and December 31, 2022, respectively) — — Additional paid-in capital 1,735,792 1,691,911 Treasury stock (1,320,372 and no shares as of June 30, 2023 and December 31, 2022, respectively) (15,743 ) — Accumulated deficit (134,729 ) (139,871 ) Accumulated other comprehensive income 78,606 74,477 Total Bumble Inc. shareholders’ equity 1,665,304 1,627,815 Noncontrolling interests 781,028 825,764 Total shareholders’ equity 2,446,332 2,453,579 Total liabilities and shareholders’ equity $ 3,692,297 $ 3,692,621 Bumble Inc. Condensed Consolidated Statements of Operations (In thousands, except per share information) (Unaudited) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Revenue $ 259,735 $ 219,206 $ 502,683 $ 429,236 Operating costs and expenses: Cost of revenue 76,737 61,509 147,317 117,121 Selling and marketing expense 65,329 59,483 128,919 116,312 General and administrative expense 43,298 48,943 93,129 72,796 Product development expense 36,233 24,888 69,385 52,676 Depreciation and amortization expense 16,967 27,151 33,698 54,080 Total operating costs and expenses 238,564 221,974 472,448 412,985 Operating earnings (loss) 21,171 (2,768 ) 30,235 16,251 Interest income (expense) (6,110 ) (5,989 ) (11,329 ) (11,580 ) Other income (expense), net (2,969 ) 4,954 (6,530 ) 18,184 Income (loss) before income taxes 12,092 (3,803 ) 12,376 22,855 Income tax benefit (provision) (2,743 ) (1,228 ) (5,356 ) (4,138 ) Net earnings (loss) 9,349 (5,031 ) 7,020 18,717 Net earnings (loss) attributable to noncontrolling interests 2,596 (1,591 ) 1,878 5,956 Net earnings (loss) attributable to Bumble Inc. shareholders $ 6,753 $ (3,440 ) $ 5,142 $ 12,761 Net earnings (loss) per share attributable to Bumble Inc. shareholders Basic earnings (loss) per share $ 0.05 $ (0.03 ) $ 0.04 $ 0.10 Diluted earnings (loss) per share $ 0.05 $ (0.03 ) $ 0.04 $ 0.10 Bumble Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cash flows from operating activities: Net earnings (loss) $ 9,349 $ (5,031 ) $ 7,020 $ 18,717 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 16,967 27,151 33,698 54,080 Impairment loss — 4,388 — 4,388 Changes in fair value of interest rate swaps 1,000 (2,813 ) 5,233 (13,630 ) Changes in fair value of contingent earn-out liability (12,287 ) 1,314 (12,933 ) (19,395 ) Non-cash lease expense 885 1,204 1,747 2,373 Deferred income tax (2,795 ) (1,414 ) (5,516 ) (3,893 ) Stock-based compensation expense 33,548 22,447 62,132 40,004 Net foreign exchange difference 1,663 (5,340 ) (327 ) (13,162 ) Research and development tax credit (301 ) (302 ) (593 ) (625 ) Other, net 11,146 (1,858 ) 23,293 8,655 Changes in assets and liabilities: Accounts receivable (4,947 ) (4,237 ) (30,981 ) (3,743 ) Other current assets 4,804 27,065 (2,256 ) 21,076 Accounts payable (803 ) 1,198 5,234 (9,157 ) Deferred revenue 933 3,791 1,954 3,897 Legal liabilities (18,250 ) (6,668 ) (18,250 ) (7,418 ) Lease liabilities (1,023 ) (1,141 ) (1,982 ) (2,342 ) Accrued expenses and other current liabilities 2,835 (34,347 ) (11,329 ) (35,065 ) Other, net (13 ) 2 (44 ) 7 Net cash provided by (used in) operating activities 42,711 25,409 56,100 44,767 Cash flows from investing activities: Capital expenditures (2,399 ) (3,053 ) (9,210 ) (8,049 ) Acquisition of business, net of cash acquired (9,877 ) — (9,877 ) (69,720 ) Net cash provided by (used in) investing activities (12,276 ) (3,053 ) (19,087 ) (77,769 ) Cash flows from financing activities: Repayment of term loan (1,437 ) (1,437 ) (2,875 ) (2,875 ) Distributions paid to noncontrolling interest holders (13,832 ) — (19,241 ) — Share repurchases (20,890 ) — (20,890 ) — Withholding tax paid on behalf of employees on stock-based awards (2,373 ) (486 ) (11,694 ) (6,194 ) Net cash provided by (used in) financing activities (38,532 ) (1,923 ) (54,700 ) (9,069 ) Effects of exchange rate changes on cash and cash equivalents (275 ) 5,424 (4,536 ) 7,541 Net increase (decrease) in cash and cash equivalents and restricted cash (8,372 ) 25,857 (22,223 ) (34,530 ) Cash and cash equivalents and restricted cash, beginning of the period 393,191 308,788 407,042 369,175 Cash and cash equivalents and restricted cash, end of the period 384,819 334,645 384,819 334,645 Less restricted cash (3,800 ) — (3,800 ) — Cash and cash equivalents, end of the period $ 381,019 $ 334,645 $ 381,019 $ 334,645 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 Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Net earnings (loss) $ 9,349 $ (5,031 ) $ 7,020 $ 18,717 Add back: Income tax (benefit) provision 2,743 1,228 5,356 4,138 Interest (income) expense 6,110 5,989 11,329 11,580 Depreciation and amortization 16,967 27,151 33,698 54,080 Stock-based compensation expense 33,548 22,447 62,132 40,004 Employer costs related to stock-based compensation (1) 463 125 3,022 1,197 Litigation costs, net of insurance reimbursements (2) 7,018 1,023 8,551 3,841 Foreign exchange (gain) loss (3) 2,034 (2,104 ) 1,465 (4,499 ) Changes in fair value of interest rate swaps(4) 1,000 (2,813 ) 5,233 (13,630 ) Transaction and other costs(5) 234 1,055 1,531 4,164 Changes in fair value of contingent earn-out liability (12,287 ) 1,314 (12,933 ) (19,395 ) Changes in fair value of investments in equity securities 76 — 177 — Impairment loss(6) — 4,388 — 4,388 Adjusted EBITDA $ 67,255 $ 54,772 $ 126,581 $ 104,585 Net earnings (loss) margin 3.6 % (2.3 )% 1.4 % 4.4 % Adjusted EBITDA margin 25.9 % 25.0 % 25.2 % 24.4 % Net cash provided by (used in) operating activities $ 42,711 $ 25,409 $ 56,100 $ 44,767 Less: Capital expenditures (2,399 ) (3,053 ) (9,210 ) (8,049 ) Free cash flow $ 40,312 $ 22,356 $ 46,890 $ 36,718 Operating cash flow conversion 456.9 % (505.0 )% 799.1 % 239.2 % Free cash flow conversion 59.9 % 40.8 % 37.0 % 35.1 % (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) loss on interest rate swaps. (5) Represents transaction costs related to acquisitions and our offerings 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 and advisory fees. (6) Represents impairment loss of a right-of-use asset related to our Moscow office. Supplementary Information (Unaudited) Stock-Based Compensation Expense (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cost of revenue $ 1,120 $ 971 $ 2,258 $ 1,919 Selling and marketing expense 1,195 2,091 4,723 769 General and administrative expense 18,860 11,690 33,676 21,497 Product development expense 12,373 7,695 21,475 15,819 Total stock-based compensation expense $ 33,548 $ 22,447 $ 62,132 $ 40,004 Reconciliation of GAAP costs and expenses to non-GAAP costs and expenses by function (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cost of revenue GAAP $ 76,737 $ 61,509 $ 147,317 $ 117,121 Stock-based compensation expense (1,120 ) (971 ) (2,258 ) (1,919 ) Payroll tax expense related to stock-based compensation (21 ) (11 ) (155 ) (62 ) Transaction and other costs — (56 ) — (139 ) Cost of revenue non-GAAP $ 75,596 $ 60,471 $ 144,904 $ 115,001 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Selling and marketing expense GAAP $ 65,329 $ 59,483 $ 128,919 $ 116,312 Stock-based compensation expense (1,195 ) (2,091 ) (4,723 ) (769 ) Payroll tax expense related to stock-based compensation (53 ) (17 ) (237 ) (170 ) Transaction and other costs — 55 — (34 ) Selling and marketing expense non-GAAP $ 64,081 $ 57,430 $ 123,959 $ 115,339 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 General and administrative expense GAAP $ 43,298 $ 48,943 $ 93,129 $ 72,796 Changes in fair value of contingent earn-out liability 12,287 (1,314 ) 12,933 19,395 Litigation costs, net of insurance proceeds (7,018 ) (1,023 ) (8,551 ) (3,841 ) Stock-based compensation expense (18,860 ) (11,690 ) (33,676 ) (21,497 ) Payroll tax expense related to stock-based compensation (165 ) (41 ) (1,047 ) (357 ) Transaction and other costs (234 ) (1,063 ) (1,531 ) (2,775 ) Impairment loss — (4,388 ) — (4,388 ) General and administrative expense non-GAAP $ 29,308 $ 29,424 $ 61,257 $ 59,333 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Product development expense GAAP $ 36,233 $ 24,888 $ 69,385 $ 52,676 Stock-based compensation expense (12,373 ) (7,695 ) (21,475 ) (15,819 ) Payroll tax expense related to stock-based compensation (225 ) (56 ) (1,584 ) (608 ) Transaction and other costs — 9 — (1,216 ) Product development expense non-GAAP $ 23,635 $ 17,146 $ 46,326 $ 35,033 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Total operating costs and expenses GAAP $ 238,564 $ 221,974 $ 472,448 $ 412,985 Depreciation and amortization expense (16,967 ) (27,151 ) (33,698 ) (54,080 ) Changes in fair value of contingent earn-out liability 12,287 (1,314 ) 12,933 19,395 Litigation costs, net of insurance proceeds (7,018 ) (1,023 ) (8,551 ) (3,841 ) Stock-based compensation expense (33,548 ) (22,447 ) (62,132 ) (40,004 ) Payroll tax expense related to stock-based compensation (464 ) (125 ) (3,023 ) (1,197 ) Transaction and other costs (234 ) (1,055 ) (1,531 ) (4,164 ) Impairment loss — (4,388 ) — (4,388 ) Total operating costs and expenses non-GAAP $ 192,620 $ 164,471 $ 376,446 $ 324,706 View source version on businesswire.com: https://www.businesswire.com/news/home/20230808446856/en/Contacts Investor Contact ir@team.bumble.com Media Contact press@team.bumble.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Bumble Inc. Announces Second Quarter 2023 Results By: Bumble Inc. via Business Wire August 08, 2023 at 16:05 PM EDT Total Revenue Increased 18% to $260 Million Bumble App Revenue Increased 23% to $208 Million Bumble App Paying Users Increased 28% to 2.5 Million; Grew 139,000 Quarter Over Quarter Net Earnings of $9.3 Million, Adjusted EBITDA of $67.3 Million Bumble Inc. (NASDAQ: BMBL) today reported financial results for the second quarter ended June 30, 2023. “We believe our ability to deliver another strong quarter is a direct reflection of our commitment to creating Kind Connections for the millions of people using our products around the world,” said Whitney Wolfe Herd, Founder and CEO of Bumble Inc. “In addition to attracting a record number of paying users on Bumble, we’ve successfully launched BFF as a standalone offering, further stabilized Badoo, and expanded our portfolio of apps to meet the evolving needs of our members throughout their relationship journeys.” Second Quarter 2023 Financial and Operational Highlights: (All comparisons relative to the Second Quarter 2022) Total Revenue increased 18.5% to $259.7 million, compared to $219.2 million. This includes an unfavorable impact of $1.6 million from foreign currency movements year over year. Bumble App Revenue grew 23.4% to $208.0 million, compared to $168.5 million. This includes an unfavorable impact of $1.6 million from foreign currency movements year over year. Badoo App and Other Revenue increased 2.0% to $51.8 million, compared to $50.7 million. Total Paying Users increased to 3.6 million, compared to 3.0 million. Total Average Revenue per Paying User ("ARPPU") increased to $23.23, compared to $23.51. Net earnings were $9.3 million or 3.6% of revenue, compared to net loss of $5.0 million, or (2.3)% of revenue. Adjusted EBITDA was $67.3 million, or 25.9% of revenue, compared to $54.8 million, or 25.0% of revenue. “We exceeded our second quarter outlook by continuing to execute on our strategic priorities while maintaining strong financial discipline,” said Anu Subramanian, Chief Financial Officer of Bumble Inc. “We believe the momentum we are experiencing across our family of apps sets us up to deliver profitable 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 Months Ended June 30, 2023 Three Months Ended June 30, 2022 Bumble App Paying Users 2,457.8 1,924.5 Badoo App and Other Paying Users 1,175.5 1,096.2 Total Paying Users 3,633.3 3,020.7 Bumble App Average Revenue per Paying User $ 28.21 $ 29.18 Badoo App and Other Average Revenue per Paying User $ 12.83 $ 13.56 Total Average Revenue per Paying User $ 23.23 $ 23.51 Balance Sheet: As of June 30, 2023, total cash and cash equivalents were $381.0 million and total debt was $622.9 million. During the second quarter of 2023, we repurchased 1.3 million shares of our Class A common stock for $20.9 million under our previously announced $150.0 million share repurchase program approved by the Board of Directors. 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. Bumble anticipates Total Revenue, Adjusted EBITDA and Adjusted EBITDA margin for the third quarter ending September 30, 2023 and full year ending December 31, 2023 to be: Third quarter 2023: Total Revenue in the range of $274 million to $280 million, which includes: Bumble App Revenue of $221 million to $225 million. Adjusted EBITDA in the range of $71 million to $73 million. Full year 2023: Total Revenue in the range of $1,055 million to $1,072 million, which includes: Bumble App Revenue of $852 million to $863 million. Adjusted EBITDA margin growth of at least 100 basis points. 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. Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.” Conference Call and Webcast Information Bumble will host a live webcast of its conference call to discuss its second quarter 2023 financial results at 4:30 p.m. Eastern Time today, August 8, 2023. 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 a metric 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 app subscription plan and/or made an in-app purchase on 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 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 (excluding Fruitz) or made a purchase on one of our other apps that we owned and operated in a given month, 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 a metric 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. 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, depreciation and amortization, 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, 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. 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 and our industry 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 sanctions and 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 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, extreme weather events 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, 2022, which was filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2023, 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, Badoo, Fruitz and Official. The Bumble platform enables people to build healthy and equitable relationships, through Kind Connections. 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. Official is an app for couples that promotes open and honest communication between partners and was founded in 2020. Bumble Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share information) (Unaudited) June 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 381,019 $ 402,559 Accounts receivable, net 98,520 66,930 Other current assets 47,406 31,882 Total current assets 526,945 501,371 Right-of-use assets 16,741 17,419 Property and equipment, net 15,654 14,467 Goodwill 1,585,281 1,579,770 Intangible assets, net 1,508,036 1,524,428 Deferred tax assets, net 31,507 24,050 Other noncurrent assets 8,133 31,116 Total assets $ 3,692,297 $ 3,692,621 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 8,372 $ 3,367 Deferred revenue 48,110 46,108 Accrued expenses and other current liabilities 124,309 156,443 Current portion of long-term debt, net 5,750 5,750 Total current liabilities 186,541 211,668 Long-term debt, net 617,189 619,223 Deferred tax liabilities, net 10,718 8,077 Payable to related parties pursuant to a tax receivable agreement 416,754 385,486 Other long-term liabilities 14,763 14,588 Total liabilities 1,245,965 1,239,042 Commitments and contingencies Shareholders’ Equity: Class A common stock (par value $0.01 per share, 6,000,000,000 shares authorized; 137,771,696 shares issued and 136,451,324 shares outstanding as of June 30, 2023; 129,774,299 shares issued and outstanding as of December 31, 2022, respectively) 1,378 1,298 Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 20 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively) — — Preferred stock (par value $0.01; authorized 600,000,000 shares; no shares issued and outstanding as of June 30, 2023, and December 31, 2022, respectively) — — Additional paid-in capital 1,735,792 1,691,911 Treasury stock (1,320,372 and no shares as of June 30, 2023 and December 31, 2022, respectively) (15,743 ) — Accumulated deficit (134,729 ) (139,871 ) Accumulated other comprehensive income 78,606 74,477 Total Bumble Inc. shareholders’ equity 1,665,304 1,627,815 Noncontrolling interests 781,028 825,764 Total shareholders’ equity 2,446,332 2,453,579 Total liabilities and shareholders’ equity $ 3,692,297 $ 3,692,621 Bumble Inc. Condensed Consolidated Statements of Operations (In thousands, except per share information) (Unaudited) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Revenue $ 259,735 $ 219,206 $ 502,683 $ 429,236 Operating costs and expenses: Cost of revenue 76,737 61,509 147,317 117,121 Selling and marketing expense 65,329 59,483 128,919 116,312 General and administrative expense 43,298 48,943 93,129 72,796 Product development expense 36,233 24,888 69,385 52,676 Depreciation and amortization expense 16,967 27,151 33,698 54,080 Total operating costs and expenses 238,564 221,974 472,448 412,985 Operating earnings (loss) 21,171 (2,768 ) 30,235 16,251 Interest income (expense) (6,110 ) (5,989 ) (11,329 ) (11,580 ) Other income (expense), net (2,969 ) 4,954 (6,530 ) 18,184 Income (loss) before income taxes 12,092 (3,803 ) 12,376 22,855 Income tax benefit (provision) (2,743 ) (1,228 ) (5,356 ) (4,138 ) Net earnings (loss) 9,349 (5,031 ) 7,020 18,717 Net earnings (loss) attributable to noncontrolling interests 2,596 (1,591 ) 1,878 5,956 Net earnings (loss) attributable to Bumble Inc. shareholders $ 6,753 $ (3,440 ) $ 5,142 $ 12,761 Net earnings (loss) per share attributable to Bumble Inc. shareholders Basic earnings (loss) per share $ 0.05 $ (0.03 ) $ 0.04 $ 0.10 Diluted earnings (loss) per share $ 0.05 $ (0.03 ) $ 0.04 $ 0.10 Bumble Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cash flows from operating activities: Net earnings (loss) $ 9,349 $ (5,031 ) $ 7,020 $ 18,717 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 16,967 27,151 33,698 54,080 Impairment loss — 4,388 — 4,388 Changes in fair value of interest rate swaps 1,000 (2,813 ) 5,233 (13,630 ) Changes in fair value of contingent earn-out liability (12,287 ) 1,314 (12,933 ) (19,395 ) Non-cash lease expense 885 1,204 1,747 2,373 Deferred income tax (2,795 ) (1,414 ) (5,516 ) (3,893 ) Stock-based compensation expense 33,548 22,447 62,132 40,004 Net foreign exchange difference 1,663 (5,340 ) (327 ) (13,162 ) Research and development tax credit (301 ) (302 ) (593 ) (625 ) Other, net 11,146 (1,858 ) 23,293 8,655 Changes in assets and liabilities: Accounts receivable (4,947 ) (4,237 ) (30,981 ) (3,743 ) Other current assets 4,804 27,065 (2,256 ) 21,076 Accounts payable (803 ) 1,198 5,234 (9,157 ) Deferred revenue 933 3,791 1,954 3,897 Legal liabilities (18,250 ) (6,668 ) (18,250 ) (7,418 ) Lease liabilities (1,023 ) (1,141 ) (1,982 ) (2,342 ) Accrued expenses and other current liabilities 2,835 (34,347 ) (11,329 ) (35,065 ) Other, net (13 ) 2 (44 ) 7 Net cash provided by (used in) operating activities 42,711 25,409 56,100 44,767 Cash flows from investing activities: Capital expenditures (2,399 ) (3,053 ) (9,210 ) (8,049 ) Acquisition of business, net of cash acquired (9,877 ) — (9,877 ) (69,720 ) Net cash provided by (used in) investing activities (12,276 ) (3,053 ) (19,087 ) (77,769 ) Cash flows from financing activities: Repayment of term loan (1,437 ) (1,437 ) (2,875 ) (2,875 ) Distributions paid to noncontrolling interest holders (13,832 ) — (19,241 ) — Share repurchases (20,890 ) — (20,890 ) — Withholding tax paid on behalf of employees on stock-based awards (2,373 ) (486 ) (11,694 ) (6,194 ) Net cash provided by (used in) financing activities (38,532 ) (1,923 ) (54,700 ) (9,069 ) Effects of exchange rate changes on cash and cash equivalents (275 ) 5,424 (4,536 ) 7,541 Net increase (decrease) in cash and cash equivalents and restricted cash (8,372 ) 25,857 (22,223 ) (34,530 ) Cash and cash equivalents and restricted cash, beginning of the period 393,191 308,788 407,042 369,175 Cash and cash equivalents and restricted cash, end of the period 384,819 334,645 384,819 334,645 Less restricted cash (3,800 ) — (3,800 ) — Cash and cash equivalents, end of the period $ 381,019 $ 334,645 $ 381,019 $ 334,645 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 Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Net earnings (loss) $ 9,349 $ (5,031 ) $ 7,020 $ 18,717 Add back: Income tax (benefit) provision 2,743 1,228 5,356 4,138 Interest (income) expense 6,110 5,989 11,329 11,580 Depreciation and amortization 16,967 27,151 33,698 54,080 Stock-based compensation expense 33,548 22,447 62,132 40,004 Employer costs related to stock-based compensation (1) 463 125 3,022 1,197 Litigation costs, net of insurance reimbursements (2) 7,018 1,023 8,551 3,841 Foreign exchange (gain) loss (3) 2,034 (2,104 ) 1,465 (4,499 ) Changes in fair value of interest rate swaps(4) 1,000 (2,813 ) 5,233 (13,630 ) Transaction and other costs(5) 234 1,055 1,531 4,164 Changes in fair value of contingent earn-out liability (12,287 ) 1,314 (12,933 ) (19,395 ) Changes in fair value of investments in equity securities 76 — 177 — Impairment loss(6) — 4,388 — 4,388 Adjusted EBITDA $ 67,255 $ 54,772 $ 126,581 $ 104,585 Net earnings (loss) margin 3.6 % (2.3 )% 1.4 % 4.4 % Adjusted EBITDA margin 25.9 % 25.0 % 25.2 % 24.4 % Net cash provided by (used in) operating activities $ 42,711 $ 25,409 $ 56,100 $ 44,767 Less: Capital expenditures (2,399 ) (3,053 ) (9,210 ) (8,049 ) Free cash flow $ 40,312 $ 22,356 $ 46,890 $ 36,718 Operating cash flow conversion 456.9 % (505.0 )% 799.1 % 239.2 % Free cash flow conversion 59.9 % 40.8 % 37.0 % 35.1 % (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) loss on interest rate swaps. (5) Represents transaction costs related to acquisitions and our offerings 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 and advisory fees. (6) Represents impairment loss of a right-of-use asset related to our Moscow office. Supplementary Information (Unaudited) Stock-Based Compensation Expense (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cost of revenue $ 1,120 $ 971 $ 2,258 $ 1,919 Selling and marketing expense 1,195 2,091 4,723 769 General and administrative expense 18,860 11,690 33,676 21,497 Product development expense 12,373 7,695 21,475 15,819 Total stock-based compensation expense $ 33,548 $ 22,447 $ 62,132 $ 40,004 Reconciliation of GAAP costs and expenses to non-GAAP costs and expenses by function (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cost of revenue GAAP $ 76,737 $ 61,509 $ 147,317 $ 117,121 Stock-based compensation expense (1,120 ) (971 ) (2,258 ) (1,919 ) Payroll tax expense related to stock-based compensation (21 ) (11 ) (155 ) (62 ) Transaction and other costs — (56 ) — (139 ) Cost of revenue non-GAAP $ 75,596 $ 60,471 $ 144,904 $ 115,001 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Selling and marketing expense GAAP $ 65,329 $ 59,483 $ 128,919 $ 116,312 Stock-based compensation expense (1,195 ) (2,091 ) (4,723 ) (769 ) Payroll tax expense related to stock-based compensation (53 ) (17 ) (237 ) (170 ) Transaction and other costs — 55 — (34 ) Selling and marketing expense non-GAAP $ 64,081 $ 57,430 $ 123,959 $ 115,339 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 General and administrative expense GAAP $ 43,298 $ 48,943 $ 93,129 $ 72,796 Changes in fair value of contingent earn-out liability 12,287 (1,314 ) 12,933 19,395 Litigation costs, net of insurance proceeds (7,018 ) (1,023 ) (8,551 ) (3,841 ) Stock-based compensation expense (18,860 ) (11,690 ) (33,676 ) (21,497 ) Payroll tax expense related to stock-based compensation (165 ) (41 ) (1,047 ) (357 ) Transaction and other costs (234 ) (1,063 ) (1,531 ) (2,775 ) Impairment loss — (4,388 ) — (4,388 ) General and administrative expense non-GAAP $ 29,308 $ 29,424 $ 61,257 $ 59,333 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Product development expense GAAP $ 36,233 $ 24,888 $ 69,385 $ 52,676 Stock-based compensation expense (12,373 ) (7,695 ) (21,475 ) (15,819 ) Payroll tax expense related to stock-based compensation (225 ) (56 ) (1,584 ) (608 ) Transaction and other costs — 9 — (1,216 ) Product development expense non-GAAP $ 23,635 $ 17,146 $ 46,326 $ 35,033 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Total operating costs and expenses GAAP $ 238,564 $ 221,974 $ 472,448 $ 412,985 Depreciation and amortization expense (16,967 ) (27,151 ) (33,698 ) (54,080 ) Changes in fair value of contingent earn-out liability 12,287 (1,314 ) 12,933 19,395 Litigation costs, net of insurance proceeds (7,018 ) (1,023 ) (8,551 ) (3,841 ) Stock-based compensation expense (33,548 ) (22,447 ) (62,132 ) (40,004 ) Payroll tax expense related to stock-based compensation (464 ) (125 ) (3,023 ) (1,197 ) Transaction and other costs (234 ) (1,055 ) (1,531 ) (4,164 ) Impairment loss — (4,388 ) — (4,388 ) Total operating costs and expenses non-GAAP $ 192,620 $ 164,471 $ 376,446 $ 324,706 View source version on businesswire.com: https://www.businesswire.com/news/home/20230808446856/en/Contacts Investor Contact ir@team.bumble.com Media Contact press@team.bumble.com
Total Revenue Increased 18% to $260 Million Bumble App Revenue Increased 23% to $208 Million Bumble App Paying Users Increased 28% to 2.5 Million; Grew 139,000 Quarter Over Quarter Net Earnings of $9.3 Million, Adjusted EBITDA of $67.3 Million
Bumble Inc. (NASDAQ: BMBL) today reported financial results for the second quarter ended June 30, 2023. “We believe our ability to deliver another strong quarter is a direct reflection of our commitment to creating Kind Connections for the millions of people using our products around the world,” said Whitney Wolfe Herd, Founder and CEO of Bumble Inc. “In addition to attracting a record number of paying users on Bumble, we’ve successfully launched BFF as a standalone offering, further stabilized Badoo, and expanded our portfolio of apps to meet the evolving needs of our members throughout their relationship journeys.” Second Quarter 2023 Financial and Operational Highlights: (All comparisons relative to the Second Quarter 2022) Total Revenue increased 18.5% to $259.7 million, compared to $219.2 million. This includes an unfavorable impact of $1.6 million from foreign currency movements year over year. Bumble App Revenue grew 23.4% to $208.0 million, compared to $168.5 million. This includes an unfavorable impact of $1.6 million from foreign currency movements year over year. Badoo App and Other Revenue increased 2.0% to $51.8 million, compared to $50.7 million. Total Paying Users increased to 3.6 million, compared to 3.0 million. Total Average Revenue per Paying User ("ARPPU") increased to $23.23, compared to $23.51. Net earnings were $9.3 million or 3.6% of revenue, compared to net loss of $5.0 million, or (2.3)% of revenue. Adjusted EBITDA was $67.3 million, or 25.9% of revenue, compared to $54.8 million, or 25.0% of revenue. “We exceeded our second quarter outlook by continuing to execute on our strategic priorities while maintaining strong financial discipline,” said Anu Subramanian, Chief Financial Officer of Bumble Inc. “We believe the momentum we are experiencing across our family of apps sets us up to deliver profitable 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 Months Ended June 30, 2023 Three Months Ended June 30, 2022 Bumble App Paying Users 2,457.8 1,924.5 Badoo App and Other Paying Users 1,175.5 1,096.2 Total Paying Users 3,633.3 3,020.7 Bumble App Average Revenue per Paying User $ 28.21 $ 29.18 Badoo App and Other Average Revenue per Paying User $ 12.83 $ 13.56 Total Average Revenue per Paying User $ 23.23 $ 23.51 Balance Sheet: As of June 30, 2023, total cash and cash equivalents were $381.0 million and total debt was $622.9 million. During the second quarter of 2023, we repurchased 1.3 million shares of our Class A common stock for $20.9 million under our previously announced $150.0 million share repurchase program approved by the Board of Directors. 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. Bumble anticipates Total Revenue, Adjusted EBITDA and Adjusted EBITDA margin for the third quarter ending September 30, 2023 and full year ending December 31, 2023 to be: Third quarter 2023: Total Revenue in the range of $274 million to $280 million, which includes: Bumble App Revenue of $221 million to $225 million. Adjusted EBITDA in the range of $71 million to $73 million. Full year 2023: Total Revenue in the range of $1,055 million to $1,072 million, which includes: Bumble App Revenue of $852 million to $863 million. Adjusted EBITDA margin growth of at least 100 basis points. 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. Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.” Conference Call and Webcast Information Bumble will host a live webcast of its conference call to discuss its second quarter 2023 financial results at 4:30 p.m. Eastern Time today, August 8, 2023. 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 a metric 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 app subscription plan and/or made an in-app purchase on 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 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 (excluding Fruitz) or made a purchase on one of our other apps that we owned and operated in a given month, 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 a metric 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. 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, depreciation and amortization, 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, 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. 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 and our industry 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 sanctions and 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 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, extreme weather events 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, 2022, which was filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2023, 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, Badoo, Fruitz and Official. The Bumble platform enables people to build healthy and equitable relationships, through Kind Connections. 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. Official is an app for couples that promotes open and honest communication between partners and was founded in 2020. Bumble Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share information) (Unaudited) June 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 381,019 $ 402,559 Accounts receivable, net 98,520 66,930 Other current assets 47,406 31,882 Total current assets 526,945 501,371 Right-of-use assets 16,741 17,419 Property and equipment, net 15,654 14,467 Goodwill 1,585,281 1,579,770 Intangible assets, net 1,508,036 1,524,428 Deferred tax assets, net 31,507 24,050 Other noncurrent assets 8,133 31,116 Total assets $ 3,692,297 $ 3,692,621 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 8,372 $ 3,367 Deferred revenue 48,110 46,108 Accrued expenses and other current liabilities 124,309 156,443 Current portion of long-term debt, net 5,750 5,750 Total current liabilities 186,541 211,668 Long-term debt, net 617,189 619,223 Deferred tax liabilities, net 10,718 8,077 Payable to related parties pursuant to a tax receivable agreement 416,754 385,486 Other long-term liabilities 14,763 14,588 Total liabilities 1,245,965 1,239,042 Commitments and contingencies Shareholders’ Equity: Class A common stock (par value $0.01 per share, 6,000,000,000 shares authorized; 137,771,696 shares issued and 136,451,324 shares outstanding as of June 30, 2023; 129,774,299 shares issued and outstanding as of December 31, 2022, respectively) 1,378 1,298 Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 20 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively) — — Preferred stock (par value $0.01; authorized 600,000,000 shares; no shares issued and outstanding as of June 30, 2023, and December 31, 2022, respectively) — — Additional paid-in capital 1,735,792 1,691,911 Treasury stock (1,320,372 and no shares as of June 30, 2023 and December 31, 2022, respectively) (15,743 ) — Accumulated deficit (134,729 ) (139,871 ) Accumulated other comprehensive income 78,606 74,477 Total Bumble Inc. shareholders’ equity 1,665,304 1,627,815 Noncontrolling interests 781,028 825,764 Total shareholders’ equity 2,446,332 2,453,579 Total liabilities and shareholders’ equity $ 3,692,297 $ 3,692,621 Bumble Inc. Condensed Consolidated Statements of Operations (In thousands, except per share information) (Unaudited) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Revenue $ 259,735 $ 219,206 $ 502,683 $ 429,236 Operating costs and expenses: Cost of revenue 76,737 61,509 147,317 117,121 Selling and marketing expense 65,329 59,483 128,919 116,312 General and administrative expense 43,298 48,943 93,129 72,796 Product development expense 36,233 24,888 69,385 52,676 Depreciation and amortization expense 16,967 27,151 33,698 54,080 Total operating costs and expenses 238,564 221,974 472,448 412,985 Operating earnings (loss) 21,171 (2,768 ) 30,235 16,251 Interest income (expense) (6,110 ) (5,989 ) (11,329 ) (11,580 ) Other income (expense), net (2,969 ) 4,954 (6,530 ) 18,184 Income (loss) before income taxes 12,092 (3,803 ) 12,376 22,855 Income tax benefit (provision) (2,743 ) (1,228 ) (5,356 ) (4,138 ) Net earnings (loss) 9,349 (5,031 ) 7,020 18,717 Net earnings (loss) attributable to noncontrolling interests 2,596 (1,591 ) 1,878 5,956 Net earnings (loss) attributable to Bumble Inc. shareholders $ 6,753 $ (3,440 ) $ 5,142 $ 12,761 Net earnings (loss) per share attributable to Bumble Inc. shareholders Basic earnings (loss) per share $ 0.05 $ (0.03 ) $ 0.04 $ 0.10 Diluted earnings (loss) per share $ 0.05 $ (0.03 ) $ 0.04 $ 0.10 Bumble Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cash flows from operating activities: Net earnings (loss) $ 9,349 $ (5,031 ) $ 7,020 $ 18,717 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 16,967 27,151 33,698 54,080 Impairment loss — 4,388 — 4,388 Changes in fair value of interest rate swaps 1,000 (2,813 ) 5,233 (13,630 ) Changes in fair value of contingent earn-out liability (12,287 ) 1,314 (12,933 ) (19,395 ) Non-cash lease expense 885 1,204 1,747 2,373 Deferred income tax (2,795 ) (1,414 ) (5,516 ) (3,893 ) Stock-based compensation expense 33,548 22,447 62,132 40,004 Net foreign exchange difference 1,663 (5,340 ) (327 ) (13,162 ) Research and development tax credit (301 ) (302 ) (593 ) (625 ) Other, net 11,146 (1,858 ) 23,293 8,655 Changes in assets and liabilities: Accounts receivable (4,947 ) (4,237 ) (30,981 ) (3,743 ) Other current assets 4,804 27,065 (2,256 ) 21,076 Accounts payable (803 ) 1,198 5,234 (9,157 ) Deferred revenue 933 3,791 1,954 3,897 Legal liabilities (18,250 ) (6,668 ) (18,250 ) (7,418 ) Lease liabilities (1,023 ) (1,141 ) (1,982 ) (2,342 ) Accrued expenses and other current liabilities 2,835 (34,347 ) (11,329 ) (35,065 ) Other, net (13 ) 2 (44 ) 7 Net cash provided by (used in) operating activities 42,711 25,409 56,100 44,767 Cash flows from investing activities: Capital expenditures (2,399 ) (3,053 ) (9,210 ) (8,049 ) Acquisition of business, net of cash acquired (9,877 ) — (9,877 ) (69,720 ) Net cash provided by (used in) investing activities (12,276 ) (3,053 ) (19,087 ) (77,769 ) Cash flows from financing activities: Repayment of term loan (1,437 ) (1,437 ) (2,875 ) (2,875 ) Distributions paid to noncontrolling interest holders (13,832 ) — (19,241 ) — Share repurchases (20,890 ) — (20,890 ) — Withholding tax paid on behalf of employees on stock-based awards (2,373 ) (486 ) (11,694 ) (6,194 ) Net cash provided by (used in) financing activities (38,532 ) (1,923 ) (54,700 ) (9,069 ) Effects of exchange rate changes on cash and cash equivalents (275 ) 5,424 (4,536 ) 7,541 Net increase (decrease) in cash and cash equivalents and restricted cash (8,372 ) 25,857 (22,223 ) (34,530 ) Cash and cash equivalents and restricted cash, beginning of the period 393,191 308,788 407,042 369,175 Cash and cash equivalents and restricted cash, end of the period 384,819 334,645 384,819 334,645 Less restricted cash (3,800 ) — (3,800 ) — Cash and cash equivalents, end of the period $ 381,019 $ 334,645 $ 381,019 $ 334,645 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 Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Net earnings (loss) $ 9,349 $ (5,031 ) $ 7,020 $ 18,717 Add back: Income tax (benefit) provision 2,743 1,228 5,356 4,138 Interest (income) expense 6,110 5,989 11,329 11,580 Depreciation and amortization 16,967 27,151 33,698 54,080 Stock-based compensation expense 33,548 22,447 62,132 40,004 Employer costs related to stock-based compensation (1) 463 125 3,022 1,197 Litigation costs, net of insurance reimbursements (2) 7,018 1,023 8,551 3,841 Foreign exchange (gain) loss (3) 2,034 (2,104 ) 1,465 (4,499 ) Changes in fair value of interest rate swaps(4) 1,000 (2,813 ) 5,233 (13,630 ) Transaction and other costs(5) 234 1,055 1,531 4,164 Changes in fair value of contingent earn-out liability (12,287 ) 1,314 (12,933 ) (19,395 ) Changes in fair value of investments in equity securities 76 — 177 — Impairment loss(6) — 4,388 — 4,388 Adjusted EBITDA $ 67,255 $ 54,772 $ 126,581 $ 104,585 Net earnings (loss) margin 3.6 % (2.3 )% 1.4 % 4.4 % Adjusted EBITDA margin 25.9 % 25.0 % 25.2 % 24.4 % Net cash provided by (used in) operating activities $ 42,711 $ 25,409 $ 56,100 $ 44,767 Less: Capital expenditures (2,399 ) (3,053 ) (9,210 ) (8,049 ) Free cash flow $ 40,312 $ 22,356 $ 46,890 $ 36,718 Operating cash flow conversion 456.9 % (505.0 )% 799.1 % 239.2 % Free cash flow conversion 59.9 % 40.8 % 37.0 % 35.1 % (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) loss on interest rate swaps. (5) Represents transaction costs related to acquisitions and our offerings 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 and advisory fees. (6) Represents impairment loss of a right-of-use asset related to our Moscow office. Supplementary Information (Unaudited) Stock-Based Compensation Expense (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cost of revenue $ 1,120 $ 971 $ 2,258 $ 1,919 Selling and marketing expense 1,195 2,091 4,723 769 General and administrative expense 18,860 11,690 33,676 21,497 Product development expense 12,373 7,695 21,475 15,819 Total stock-based compensation expense $ 33,548 $ 22,447 $ 62,132 $ 40,004 Reconciliation of GAAP costs and expenses to non-GAAP costs and expenses by function (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Cost of revenue GAAP $ 76,737 $ 61,509 $ 147,317 $ 117,121 Stock-based compensation expense (1,120 ) (971 ) (2,258 ) (1,919 ) Payroll tax expense related to stock-based compensation (21 ) (11 ) (155 ) (62 ) Transaction and other costs — (56 ) — (139 ) Cost of revenue non-GAAP $ 75,596 $ 60,471 $ 144,904 $ 115,001 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Selling and marketing expense GAAP $ 65,329 $ 59,483 $ 128,919 $ 116,312 Stock-based compensation expense (1,195 ) (2,091 ) (4,723 ) (769 ) Payroll tax expense related to stock-based compensation (53 ) (17 ) (237 ) (170 ) Transaction and other costs — 55 — (34 ) Selling and marketing expense non-GAAP $ 64,081 $ 57,430 $ 123,959 $ 115,339 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 General and administrative expense GAAP $ 43,298 $ 48,943 $ 93,129 $ 72,796 Changes in fair value of contingent earn-out liability 12,287 (1,314 ) 12,933 19,395 Litigation costs, net of insurance proceeds (7,018 ) (1,023 ) (8,551 ) (3,841 ) Stock-based compensation expense (18,860 ) (11,690 ) (33,676 ) (21,497 ) Payroll tax expense related to stock-based compensation (165 ) (41 ) (1,047 ) (357 ) Transaction and other costs (234 ) (1,063 ) (1,531 ) (2,775 ) Impairment loss — (4,388 ) — (4,388 ) General and administrative expense non-GAAP $ 29,308 $ 29,424 $ 61,257 $ 59,333 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Product development expense GAAP $ 36,233 $ 24,888 $ 69,385 $ 52,676 Stock-based compensation expense (12,373 ) (7,695 ) (21,475 ) (15,819 ) Payroll tax expense related to stock-based compensation (225 ) (56 ) (1,584 ) (608 ) Transaction and other costs — 9 — (1,216 ) Product development expense non-GAAP $ 23,635 $ 17,146 $ 46,326 $ 35,033 (In thousands) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Total operating costs and expenses GAAP $ 238,564 $ 221,974 $ 472,448 $ 412,985 Depreciation and amortization expense (16,967 ) (27,151 ) (33,698 ) (54,080 ) Changes in fair value of contingent earn-out liability 12,287 (1,314 ) 12,933 19,395 Litigation costs, net of insurance proceeds (7,018 ) (1,023 ) (8,551 ) (3,841 ) Stock-based compensation expense (33,548 ) (22,447 ) (62,132 ) (40,004 ) Payroll tax expense related to stock-based compensation (464 ) (125 ) (3,023 ) (1,197 ) Transaction and other costs (234 ) (1,055 ) (1,531 ) (4,164 ) Impairment loss — (4,388 ) — (4,388 ) Total operating costs and expenses non-GAAP $ 192,620 $ 164,471 $ 376,446 $ 324,706 View source version on businesswire.com: https://www.businesswire.com/news/home/20230808446856/en/
