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Bumble Inc. Announces Third Quarter 2023 Results

11/07/2023

Total Revenue Increased 18% to $276 Million
Bumble App Revenue Increased 23% to $222 Million
Bumble App Paying Users Increased 25% to 2.6 Million; Grew 147,000 Quarter Over Quarter
Net Earnings of $23.1 Million, Adjusted EBITDA of $75.3 Million
Share Repurchase Program Increased to $300 Million

Bumble Inc. (NASDAQ: BMBL) today reported financial results for the third quarter ended September 30, 2023.

“Our strong third quarter results reflect our powerful brand, commitment to innovation, and relentless focus on helping people connect with one another,” said Whitney Wolfe Herd, Founder and CEO of Bumble Inc. “By continuing to execute successfully on growth initiatives, we are strengthening our market leadership in online dating and making progress on the sizable opportunity beyond dating.”

Third Quarter 2023 Financial and Operational Highlights:

(All comparisons relative to the Third Quarter 2022)

  • Total Revenue increased 18.4% to $275.5 million, compared to $232.6 million. This includes a favorable impact of $4.0 million from foreign currency movements year over year.
    • Bumble App Revenue increased 22.8% to $221.8 million, compared to $180.6 million. This includes a favorable impact of $1.7 million from foreign currency movements year over year.
    • Badoo App and Other Revenue increased 3.3% to $53.7 million, compared to $52.0 million. This includes a favorable impact of $2.3 million from foreign currency movements year over year.
  • Total Paying Users increased to 3.8million, compared to 3.3 million.
  • Total Average Revenue per Paying User ("ARPPU") increased to $23.42, compared to $22.96.
  • Net earnings were $23.1 million, or 8.4% of revenue, compared to net earnings of $26.4 million, or 11.4% of revenue.
  • Adjusted EBITDA was $75.3 million, or 27.3% of revenue, compared to $61.8 million, or 26.6% of revenue.

“Our business continued to perform well with strong top-line growth and better than expected Adjusted EBITDA in Q3,” said Anu Subramanian, Chief Financial Officer of Bumble Inc. “Our conviction in the long-term trajectory of our business is reflected in the increased share repurchase authorization and our commitment to return capital to shareholders.”

Key Operating Metrics:

The following metrics were calculated excluding paying users and revenue generated from Fruitz and Official. Please refer to the Definitions section for more information.

(In thousands, except ARPPU)

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

Bumble App Paying Users

 

 

2,604.9

 

 

 

2,088.1

 

Badoo App and Other Paying Users

 

 

1,215.6

 

 

 

1,202.2

 

Total Paying Users

 

 

3,820.5

 

 

 

3,290.3

 

Bumble App Average Revenue per Paying User

 

$

28.38

 

 

$

28.84

 

Badoo App and Other Average Revenue per Paying User

 

$

12.79

 

 

$

12.75

 

Total Average Revenue per Paying User

 

$

23.42

 

 

$

22.96

 

Balance Sheet:

As of September 30, 2023, total cash and cash equivalents were $439.2 million and total debt was $621.9 million.

Share Repurchase Program:

During the third quarter of 2023, there were no share repurchases under our previously announced $150.0 million share repurchase program approved by the Board of Directors. As of September 30, 2023, a total of $129.1 million remained available under the repurchase program. The Company announced today an increase in the share repurchase program authorized amount from $150.0 million to $300.0 million.

Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”

Financial Outlook:

A reconciliation of Adjusted EBITDA to GAAP net earnings (loss) and Adjusted EBITDA margin growth to GAAP net earnings (loss) margin growth which is growth in GAAP net earnings (loss) as a percentage of revenue has not been provided for the outlook included herein as the quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-GAAP adjustment for certain legal, tax and regulatory reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.

The Company anticipates Total Revenue and Adjusted EBITDA for the fourth quarter ending December 31, 2023 to be:

Fourth quarter 2023:

  • Total Revenue in the range of $272 million to $278 million, which includes:
    • Total foreign currency benefit $6 million lower than previously estimated
    • Estimated unfavorable impact of approximately $1 million from the crisis in the Middle East, primarily in Bumble App Revenue
    • Bumble App Revenue of $221 million to $225 million, which includes foreign currency benefit $4 million lower than previously estimated
  • Adjusted EBITDA in the range of $72 million to $75 million.

Actual results may differ materially from Bumble’s financial outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Conference Call and Webcast Information

Bumble will host a live webcast of its conference call to discuss its third quarter 2023 financial results at 4:30 p.m. Eastern Time today, November 7, 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 or Total ARPPU is a metric calculated based on Total Revenue in any measurement period (excluding any revenue generated from Fruitz and Official, 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 or Bumble For Friends app subscription plan and/or in-app purchases on Bumble app or Bumble For Friends app in the relevant period.

Bumble App Paying User is a user that has purchased or renewed a Bumble app or Bumble For Friends app subscription plan and/or made an in-app purchase on Bumble app or Bumble For Friends app in a given month. We calculate Bumble App Paying Users as a monthly average, by counting the number of Bumble App Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Bumble App Average Revenue per Paying User or Bumble App ARPPU is a metric calculated based on Bumble App Revenue in any measurement period, divided by Bumble App Paying Users in such period divided by the number of months in the period.

Badoo App and Other Revenue is revenue derived from purchases or renewals of a Badoo app subscription plan and/or in-app purchases on Badoo app in the relevant period, purchases on one of our other apps that we owned and operated in the relevant period, purchases on other third party apps that used our technology in the relevant period and advertising, partnerships or affiliates revenue in the relevant period.

Badoo App and Other Paying User is a user that has purchased or renewed a subscription plan and/or made an in-app purchase on Badoo app in a given month or made a purchase on one of our other apps that we owned and operated in a given month (excluding Fruitz and Official), or made a purchase on other third-party apps that used our technology in the relevant period. We calculate Badoo App and Other Paying Users as a monthly average, by counting the number of Badoo App and Other Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Badoo App and Other Average Revenue per Paying User or Badoo App and Other ARPPU is a metric calculated based on Badoo App and Other Revenue in any measurement period (excluding any revenue generated from Fruitz and Official, 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, net, 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, net, 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 the current views of management of Bumble Inc. 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 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, geopolitical events, political unrest, armed conflicts, including conflicts in Eastern Europe and the Middle East, 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, Bumble For Friends, 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 For Friends) 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)

 

 

 

September 30, 2023

 

 

December 31, 2022

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

439,184

 

 

$

402,559

 

Accounts receivable, net

 

 

102,007

 

 

 

66,930

 

Other current assets

 

 

42,952

 

 

 

31,882

 

Total current assets

 

 

584,143

 

 

 

501,371

 

Right-of-use assets

 

 

15,537

 

 

 

17,419

 

Property and equipment, net

 

 

13,589

 

 

 

14,467

 

Goodwill

 

 

1,584,062

 

 

 

1,579,770

 

Intangible assets, net

 

 

1,495,791

 

 

 

1,524,428

 

Deferred tax assets, net

 

 

32,379

 

 

 

24,050

 

Other noncurrent assets

 

 

7,692

 

 

 

31,116

 

Total assets

 

$

3,733,193

 

 

$

3,692,621

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Accounts payable

 

$

5,351

 

 

$

3,367

 

Deferred revenue

 

 

49,305

 

 

 

46,108

 

Accrued expenses and other current liabilities

 

 

136,471

 

 

 

156,443

 

Current portion of long-term debt, net

 

 

5,750

 

 

 

5,750

 

Total current liabilities

 

 

196,877

 

 

 

211,668

 

Long-term debt, net

 

 

616,179

 

 

 

619,223

 

Deferred tax liabilities, net

 

 

8,766

 

 

 

8,077

 

Payable to related parties pursuant to a tax receivable agreement

 

 

416,754

 

 

 

385,486

 

Other long-term liabilities

 

 

14,458

 

 

 

14,588

 

Total liabilities

 

 

1,253,034

 

 

 

1,239,042

 

Commitments and contingencies

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

Class A common stock (par value $0.01 per share, 6,000,000,000 shares authorized; 138,003,587 shares issued and 136,683,215 shares outstanding as of September 30, 2023; 129,774,299 shares issued and outstanding as of December 31, 2022)

 

 

1,380

 

 

 

1,298

 

Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 20 shares issued and outstanding as of September 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 September 30, 2023 and December 31, 2022, respectively)

 

 

 

 

 

 

Additional paid-in capital

 

 

1,750,233

 

 

 

1,691,911

 

Treasury stock (1,320,372 and no shares as of September 30, 2023 and December 31, 2022, respectively)

 

 

(15,743

)

 

 

 

Accumulated deficit

 

 

(118,058

)

 

 

(139,871

)

Accumulated other comprehensive income

 

 

71,911

 

 

 

74,477

 

Total Bumble Inc. shareholders’ equity

 

 

1,689,723

 

 

 

1,627,815

 

Noncontrolling interests

 

 

790,436

 

 

 

825,764

 

Total shareholders’ equity

 

 

2,480,159

 

 

 

2,453,579

 

Total liabilities and shareholders’ equity

 

$

3,733,193

 

 

$

3,692,621

 

 

Bumble Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share information)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

Revenue

 

$

275,510

 

 

$

232,639

 

 

$

778,193

 

 

$

661,875

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

80,049

 

 

 

64,581

 

 

 

227,366

 

 

 

181,702

 

Selling and marketing expense

 

 

68,848

 

 

 

64,316

 

 

 

197,767

 

 

 

180,628

 

General and administrative expense

 

 

48,577

 

 

 

27,265

 

 

 

141,706

 

 

 

100,061

 

Product development expense

 

 

30,909

 

 

 

28,378

 

 

 

100,294

 

 

 

81,054

 

Depreciation and amortization expense

 

 

17,127

 

 

 

19,755

 

 

 

50,825

 

 

 

73,835

 

Total operating costs and expenses

 

 

245,510

 

 

 

204,295

 

 

 

717,958

 

 

 

617,280

 

Operating earnings (loss)

 

 

30,000

 

 

 

28,344

 

 

 

60,235

 

 

 

44,595

 

Interest income (expense), net

 

 

(5,256

)

 

 

(6,866

)

 

 

(16,585

)

 

 

(18,446

)

Other income (expense), net

 

 

252

 

 

 

6,545

 

 

 

(6,278

)

 

 

24,729

 

Income (loss) before income taxes

 

 

24,996

 

 

 

28,023

 

 

 

37,372

 

 

 

50,878

 

Income tax benefit (provision)

 

 

(1,872

)

 

 

(1,618

)

 

 

(7,228

)

 

 

(5,756

)

Net earnings (loss)

 

 

23,124

 

 

 

26,405

 

 

 

30,144

 

 

 

45,122

 

Net earnings (loss) attributable to noncontrolling interests

 

 

6,453

 

 

 

8,342

 

 

 

8,331

 

 

 

14,298

 

Net earnings (loss) attributable to Bumble Inc. shareholders

 

$

16,671

 

 

$

18,063

 

 

$

21,813

 

 

$

30,824

 

Net earnings (loss) per share attributable to Bumble Inc. shareholders

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

0.12

 

 

$

0.14

 

 

$

0.16

 

 

$

0.24

 

Diluted earnings (loss) per share

 

$

0.12

 

 

$

0.14

 

 

$

0.16

 

 

$

0.23

 

 

Bumble Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

23,124

 

 

$

26,405

 

 

$

30,144

 

 

$

45,122

 

Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

17,127

 

 

 

19,755

 

 

 

50,825

 

 

 

73,835

 

Impairment loss

 

 

 

 

 

 

 

 

 

 

 

4,388

 

Changes in fair value of interest rate swaps

 

 

3,796

 

 

 

(4,774

)

 

 

9,029

 

 

 

(18,404

)

Changes in fair value of contingent earn-out liability

 

 

(11,308

)

 

 

(27,004

)

 

 

(24,241

)

 

 

(46,399

)

Non-cash lease expense

 

 

893

 

 

 

1,106

 

 

 

2,640

 

 

 

3,479

 

Deferred income tax

 

 

(3,364

)

 

 

(2,608

)

 

 

(8,880

)

 

 

(6,501

)

Stock-based compensation expense

 

 

21,528

 

 

 

37,175

 

 

 

83,660

 

 

 

77,179

 

Net foreign exchange difference

 

 

(2,973

)

 

 

(14,892

)

 

 

(3,300

)

 

 

(28,054

)

Other, net

 

 

(21,460

)

 

 

4,433

 

 

 

1,240

 

 

 

12,463

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,778

)

 

 

(1,433

)

 

 

(32,759

)

 

 

(5,176

)

Other current assets

 

 

472

 

 

 

(815

)

 

 

(1,784

)

 

 

20,261

 

Accounts payable

 

 

(2,770

)

 

 

(684

)

 

 

2,464

 

 

 

(9,841

)

Deferred revenue

 

 

1,195

 

 

 

782

 

 

 

3,149

 

 

 

4,679

 

Legal liabilities

 

 

19,725

 

 

 

288

 

 

 

1,475

 

 

 

(7,130

)

Lease liabilities

 

 

(1,009

)

 

 

(895

)

 

 

(2,991

)

 

 

(3,237

)

Accrued expenses and other current liabilities

 

 

18,993

 

 

 

185

 

 

 

7,664

 

 

 

(34,880

)

Other, net

 

 

378

 

 

 

(22

)

 

 

334

 

 

 

(15

)

Net cash provided by (used in) operating activities

 

 

62,569

 

 

 

37,002

 

 

 

118,669

 

 

 

81,769

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(3,559

)

 

 

(3,262

)

 

 

(12,769

)

 

 

(11,311

)

Acquisition of business, net of cash acquired

 

 

57

 

 

 

 

 

 

(9,820

)

 

 

(69,720

)

Net cash provided by (used in) investing activities

 

 

(3,502

)

 

 

(3,262

)

 

 

(22,589

)

 

 

(81,031

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of term loan

 

 

(1,438

)

 

 

(1,438

)

 

 

(4,313

)

 

 

(4,313

)

Distributions paid to noncontrolling interest holders

 

 

(46

)

 

 

 

 

 

(19,287

)

 

 

 

Share repurchases

 

 

 

 

 

 

 

 

(20,890

)

 

 

 

Withholding tax paid on behalf of employees on stock-based awards

 

 

(2,171

)

 

 

(1,158

)

 

 

(13,865

)

 

 

(7,352

)

Net cash provided by (used in) financing activities

 

 

(3,655

)

 

 

(2,596

)

 

 

(58,355

)

 

 

(11,665

)

Effects of exchange rate changes on cash and cash equivalents

 

 

2,419

 

 

 

6,100

 

 

 

(2,117

)

 

 

13,641

 

Net increase (decrease) in cash and cash equivalents and restricted cash

 

 

57,831

 

 

 

37,244

 

 

 

35,608

 

 

 

2,714

 

Cash and cash equivalents and restricted cash, beginning of the period

 

 

384,819

 

 

 

334,645

 

 

 

407,042

 

 

 

369,175

 

Cash and cash equivalents and restricted cash, end of the period

 

 

442,650

 

 

 

371,889

 

 

 

442,650

 

 

 

371,889

 

Less restricted cash

 

 

(3,466

)

 

 

(6,784

)

 

 

(3,466

)

 

 

(6,784

)

Cash and cash equivalents, end of the period

 

$

439,184

 

 

$

365,105

 

 

$

439,184

 

 

$

365,105

 

 

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 September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

Net earnings (loss)

 

$

23,124

 

 

$

26,405

 

 

$

30,144

 

 

$

45,122

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) provision

 

 

1,872

 

 

 

1,618

 

 

 

7,228

 

 

 

5,756

 

Interest (income) expense, net

 

 

5,256

 

 

 

6,866

 

 

 

16,585

 

 

 

18,446

 

Depreciation and amortization

 

 

17,127

 

 

 

19,755

 

 

 

50,825

 

 

 

73,835

 

Stock-based compensation expense

 

 

21,528

 

 

 

37,175

 

 

 

83,660

 

 

 

77,179

 

Employer costs related to stock-based compensation (1)

 

 

1,003

 

 

 

431

 

 

 

4,025

 

 

 

1,628

 

Litigation costs, net of insurance reimbursements (2)

 

 

16,323

 

 

 

249

 

 

 

24,874

 

 

 

4,089

 

Foreign exchange (gain) loss (3)

 

 

(3,905

)

 

 

(1,551

)

 

 

(2,439

)

 

 

(6,050

)

Changes in fair value of interest rate swaps(4)

 

 

3,796

 

 

 

(4,774

)

 

 

9,029

 

 

 

(18,404

)

Transaction and other costs(5)

 

 

463

 

 

 

2,705

 

 

 

1,994

 

 

 

6,869

 

Changes in fair value of contingent earn-out liability

 

 

(11,308

)

 

 

(27,004

)

 

 

(24,241

)

 

 

(46,399

)

Changes in fair value of investments in equity securities

 

 

2

 

 

 

(38

)

 

 

178

 

 

 

(38

)

Impairment loss(6)

 

 

 

 

 

 

 

 

 

 

 

4,388

 

Adjusted EBITDA

 

$

75,281

 

 

$

61,837

 

 

$

201,862

 

 

$

166,421

 

Net earnings (loss) margin

 

 

8.4

%

 

 

11.4

%

 

 

3.9

%

 

 

6.8

%

Adjusted EBITDA margin

 

 

27.3

%

 

 

26.6

%

 

 

25.9

%

 

 

25.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

62,569

 

 

$

37,002

 

 

$

118,669

 

 

$

81,769

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(3,559

)

 

 

(3,262

)

 

 

(12,769

)

 

 

(11,311

)

Free cash flow

 

$

59,010

 

 

$

33,740

 

 

$

105,900

 

 

$

70,458

 

Operating cash flow conversion

 

 

270.6

%

 

 

140.1

%

 

 

393.7

%

 

 

181.2

%

Free cash flow conversion

 

 

78.4

%

 

 

54.6

%

 

 

52.5

%

 

 

42.3

%

(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 September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

Cost of revenue

 

$

542

 

 

$

807

 

 

$

2,800

 

 

$

2,726

 

Selling and marketing expense

 

 

2,469

 

 

 

3,779

 

 

 

7,191

 

 

 

4,547

 

General and administrative expense

 

 

10,352

 

 

 

22,461

 

 

 

44,029

 

 

 

43,959

 

Product development expense

 

 

8,165

 

 

 

10,128

 

 

 

29,640

 

 

 

25,947

 

Total stock-based compensation expense

 

$

21,528

 

 

$

37,175

 

 

$

83,660

 

 

$

77,179

 

 

Reconciliation of GAAP costs and expenses to non-GAAP costs and expenses by function

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

Cost of revenue GAAP

 

$

80,049

 

 

$

64,581

 

 

$

227,366

 

 

$

181,702

 

Stock-based compensation expense

 

 

(542

)

 

 

(807

)

 

 

(2,800

)

 

 

(2,726

)

Payroll tax expense related to stock-based compensation

 

 

(42

)

 

 

(22

)

 

 

(197

)

 

 

(84

)

Transaction and other costs

 

 

 

 

 

14

 

 

 

 

 

 

(125

)

Cost of revenue non-GAAP

 

$

79,465

 

 

$

63,766

 

 

$

224,369

 

 

$

178,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

Selling and marketing expense GAAP

 

$

68,848

 

 

$

64,316

 

 

$

197,767

 

 

$

180,628

 

Stock-based compensation expense

 

 

(2,469

)

 

 

(3,779

)

 

 

(7,191

)

 

 

(4,547

)

Payroll tax expense related to stock-based compensation

 

 

(72

)

 

 

(27

)

 

 

(309

)

 

 

(197

)

Transaction and other costs

 

 

 

 

 

 

 

 

 

 

 

(34

)

Selling and marketing expense non-GAAP

 

$

66,307

 

 

$

60,510

 

 

$

190,267

 

 

$

175,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

General and administrative expense GAAP

 

$

48,577

 

 

$

27,265

 

 

$

141,706

 

 

$

100,061

 

Changes in fair value of contingent earn-out liability

 

 

11,308

 

 

 

27,004

 

 

 

24,241

 

 

 

46,399

 

Litigation costs, net of insurance proceeds

 

 

(16,323

)

 

 

(249

)

 

 

(24,874

)

 

 

(4,089

)

Stock-based compensation expense

 

 

(10,352

)

 

 

(22,461

)

 

 

(44,029

)

 

 

(43,959

)

Payroll tax expense related to stock-based compensation

 

 

(193

)

 

 

(113

)

 

 

(1,239

)

 

 

(470

)

Transaction and other costs

 

 

(463

)

 

 

(2,882

)

 

 

(1,994

)

 

 

(5,657

)

Impairment loss

 

 

 

 

 

 

 

 

 

 

 

(4,388

)

General and administrative expense non-GAAP

 

$

32,554

 

 

$

28,564

 

 

$

93,811

 

 

$

87,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

Product development expense GAAP

 

$

30,909

 

 

$

28,378

 

 

$

100,294

 

 

$

81,054

 

Stock-based compensation expense

 

 

(8,165

)

 

 

(10,128

)

 

 

(29,640

)

 

 

(25,947

)

Payroll tax expense related to stock-based compensation

 

 

(696

)

 

 

(269

)

 

 

(2,280

)

 

 

(877

)

Transaction and other costs

 

 

 

 

 

163

 

 

 

 

 

 

(1,053

)

Product development expense non-GAAP

 

$

22,048

 

 

$

18,144

 

 

$

68,374

 

 

$

53,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

Nine Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2022

 

Total operating costs and expenses GAAP

 

$

245,510

 

 

$

204,295

 

 

$

717,958

 

 

$

617,280

 

Depreciation and amortization expense

 

 

(17,127

)

 

 

(19,755

)

 

 

(50,825

)

 

 

(73,835

)

Changes in fair value of contingent earn-out liability

 

 

11,308

 

 

 

27,004

 

 

 

24,241

 

 

 

46,399

 

Litigation costs, net of insurance proceeds

 

 

(16,323

)

 

 

(249

)

 

 

(24,874

)

 

 

(4,089

)

Stock-based compensation expense

 

 

(21,528

)

 

 

(37,175

)

 

 

(83,660

)

 

 

(77,179

)

Payroll tax expense related to stock-based compensation

 

 

(1,003

)

 

 

(431

)

 

 

(4,026

)

 

 

(1,628

)

Transaction and other costs

 

 

(463

)

 

 

(2,705

)

 

 

(1,994

)

 

 

(6,869

)

Impairment loss

 

 

 

 

 

 

 

 

 

 

 

(4,388

)

Total operating costs and expenses non-GAAP

 

$

200,374

 

 

$

170,984

 

 

$

576,820

 

 

$

495,691

 

 

Investor Contact
ir@team.bumble.com

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Source: Bumble Inc.

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