8-K
0001830043false00018300432022-03-082022-03-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 8, 2022

 

Bumble Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

001-40054

85-3604367

(State or other jurisdiction

of incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

1105 West 41st Street, Austin, Texas

 

78756

(Address of principal executive offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (512) 696-1409

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol

 

Name of each exchange on which registered

Class A common stock, par value $0.01 per share

 

BMBL

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On March 8, 2022, Bumble Inc. issued a press release announcing earnings for the fourth quarter and full year ended December 31, 2021. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Number

 

Description of Exhibit

99.1

 

Press release of Bumble Inc., dated March 8, 2022, announcing earnings for the fourth quarter and full year ended December 31, 2021

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

BUMBLE INC.

 

 

 

 

 Date: March 8, 2022

 

By:

/s/ Anuradha B. Subramanian

 

 

Name:

 Anuradha B. Subramanian

 

 

Title:

 Chief Financial Officer

 

3


EX-99.1

 

Exhibit 99.1

 

 

Bumble Inc. Announces Fourth Quarter and Full Year 2021 Results

 

Total Revenue in 2021 Increased to $765.7 million

Fourth Quarter Bumble App Revenue Increased 42% to $150.5 million

Fourth Quarter Bumble App Paying Users Increased 29% to 1.6 million; Grew 108,000 Quarter Over Quarter

 

Austin, Texas, Mar. 8, 2022 -­ Bumble Inc. (NASDAQ: BMBL), the parent company of Bumble, Badoo, and Fruitz, today reported financial results for the fourth quarter and full year ended December 31, 2021.

 

"We are pleased to deliver another quarter of strong revenue and adjusted EBITDA growth and are excited to add Fruitz to our family of global, market-leading apps,” said Whitney Wolfe Herd, Founder and CEO of Bumble. “In our first year as a public company, and with our mission at the forefront of everything we do, we successfully executed on our core strategic priorities: driving scale and engagement, increasing monetization, and improving profitability."

 

In addition to announcing its fourth quarter and full year 2021 results, Bumble Inc. has also announced that it is discontinuing its operations in Russia, as well as removing all of its apps from the Apple App Store and Google Play Store in Russia and Belarus. The combined revenue from Russia, Ukraine, and Belarus was approximately 2.8% of total Bumble Inc. annual revenue in 2021, almost all in Badoo App and Other revenue. Russia, Belarus, and Ukraine contribute less than 0.1% of Bumble App revenue.

 

Fourth Quarter 2021 Operational and Financial Highlights:

(All comparisons relative to the Fourth Quarter 2020)

 

Revenue increased 25.7% to $208.2 million, compared to $165.6 million. This includes an unfavorable impact of $1.5 million from foreign currency movements year over year.
Bumble App revenue increased 42.2% to $150.5 million, compared to $105.8 million.
Badoo App and Other revenue decreased (3.5)% to $57.7 million, compared to $59.8 million.
Total paying users increased 10.6% to 3.0 million, compared to 2.7 million.
Total average revenue per paying user (ARPPU) was $22.83, compared to $20.02.
Net loss was $14.7 million, or (7.0)% of revenue, compared to net loss of $26.1 million, or (15.8)% of revenue.
Adjusted EBITDA was $54.8 million, or 26.3% of revenue, compared to $44.1 million, or 26.6% of revenue.

 

Full Year 2021 Operational and Financial Highlights:

(All comparisons relative to the Full Year 2020)

 

Revenue was $765.7 million for the year ended December 31, 2021, compared to $542.2 million for the period from January 29, 2020 to December 31, 2020 and $40.0 million for the period from January 1, 2020 to January 28, 2020.
Bumble App revenue was $532.9 million for the year ended December 31, 2021, compared to $337.2 million for the period from January 29, 2020 to December 31, 2020 and $23.3 million for the period from January 1, 2020 to January 28, 2020.
Badoo App and Other revenue was $232.8 million for the year ended December 31, 2021, compared to $205.0 million for the period from January 29, 2020 to December 31, 2020 and $16.7 million for the period from January 1, 2020 to January 28, 2020.
Total paying users increased 15.5% to 2.9 million, compared to 2.5 million.
Total ARPPU was $21.68, compared to $18.89.
Net earnings (loss) was $286.9 million, or 37.5% of revenue, for the year ended December 31, 2021, compared to $(110.2) million, or (20.3)% of revenue, for the period from January 29, 2020 to December 31, 2020 and $(32.6) million, or (81.4)% of revenue, for the period from January 1, 2020 to January 28, 2020.

 


 

Adjusted EBITDA was $207.2 million, or 27.1% of revenue, for the year ended December 31, 2021, compared to $143.1 million, or 26.4% of revenue, for the period from January 29, 2020 to December 31, 2020 and $9.4 million, or 23.4% of revenue, for the period from January 1, 2020 to January 28, 2020.

 

“We finished 2021 with a strong fourth quarter, highlighted by Bumble App's 42% year over year revenue growth and increase of 108,000 paying users quarter over quarter,” added Anu Subramanian, CFO of Bumble. “We expect Bumble App to have another strong year in 2022 and grow revenue 34% to 36% year over year, driven by continued international expansion and product innovation."

 

Key Operating Metrics:

 

(in thousands, except ARPPU)

 

Quarter
Ended
December
31, 2021

 

 

Quarter
Ended
December
31, 2020

 

 

Year Ended
December 31,
2021

 

 

Year Ended
December 31,
2020

 

Bumble App Paying Users

 

 

1,640.7

 

 

 

1,268.7

 

 

 

1,499.8

 

 

 

1,142.1

 

Badoo App and Other Paying Users

 

 

1,338.2

 

 

 

1,424.6

 

 

 

1,394.1

 

 

 

1,363.4

 

Total Paying Users

 

 

2,978.9

 

 

 

2,693.3

 

 

 

2,893.9

 

 

 

2,505.5

 

Bumble App Average Revenue per Paying User

 

$

30.57

 

 

$

27.79

 

 

$

29.61

 

 

$

26.30

 

Badoo App and Other Average Revenue per Paying User

 

$

13.33

 

 

$

13.10

 

 

$

13.16

 

 

$

12.69

 

Total Average Revenue per Paying User

 

$

22.83

 

 

$

20.02

 

 

$

21.68

 

 

$

18.89

 

 

Balance Sheet:

 

As of December 31, 2021, total cash and cash equivalents were $369.2 million and total debt was $622.9 million.

 

Financial results will not be final until Bumble files its Annual Report on Form 10-K for the period. Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”

 

Financial Outlook:

 

Bumble anticipates total revenue and adjusted EBITDA for the quarter ending March 31, 2022 and year ending December 31, 2022 to be:

 

First quarter 2022

Total revenue in the range of $207 to $210 million.
Adjusted EBITDA in the range of $47 to $49 million.

 

The revenue outlook for first quarter 2022 is based on the following considerations:

Bumble App revenue of $152 to $153 million.
A loss of approximately $2 million of revenue from Russia, Ukraine, and Belarus, due to the conflict and the company's subsequent decision to remove all of its apps from the Apple App Store and Google Play Store in Russia and Belarus. This will predominantly impact Badoo App and Other revenue.
An unfavorable impact of approximately $5 million from foreign currency movements.

 

Full year 2022

Total revenue in the range of $934 to $944 million.
Adjusted EBITDA margin in the range of 26.5% to 27%.

 

The revenue outlook for full year 2022 is based on the following considerations:

Bumble App year over year revenue growth of 34% to 36%.
A loss of approximately $20 million in revenue from Russia, Ukraine, and Belarus, due to the conflict and the company's subsequent decision to remove all of its apps from the Apple App Store and Google Play Store in Russia and Belarus. This will predominantly impact Badoo App and Other revenue.
An unfavorable impact of approximately $20 million from foreign currency movements.

 


 

 

The adjusted EBITDA outlook for full year 2022 is based on the following considerations:

The outlook range incorporates the flow-through impact of the loss of approximately $20 million in revenue from the Russia-Ukraine situation and modest dilution from Fruitz due to investments in its integration and growth.
The outlook range does not assume additional costs we would incur if Google mandates Google Play Billing starting in April 1, 2022. If it were to be enforced, it would result in incremental costs of $16 million for the remainder of the year. The range also does not factor in additional savings from further app store changes that may have a favorable impact.

 

Please note that following its recent acquisition on January 31, 2022, revenue from Fruitz will be recognized and reported in Badoo App and Other revenue.

 

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.

 

Amounts included in our balance sheet for the “tax receivable agreement liability” and “additional paid-in capital” as of December 31, 2021 are subject to change and final amounts will be disclosed within our to be filed Annual Report on Form 10-K for the year ended December 31, 2021.

 

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

 

Conference Call and Webcast Information

 

Bumble will host a conference call and live webcast to discuss its fourth quarter and full year 2021 financial results at 4:30 p.m. Eastern Time today, March 8, 2022. To listen to the live conference call, please dial toll free (833) 362-0206 or international (914) 987-7675, access code 3783656, approximately 10 minutes prior to the start of the call. 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

 

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

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

Badoo App and Other Average Revenue per Paying User is calculated based on Badoo App and Other Revenue in any measurement period, excluding any revenue generated from 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.

Badoo App and Other Paying User is a user that has purchased or renewed a subscription plan and/or made an in-app purchase on the Badoo app in a given month (or made a purchase on one of our other apps that we owned and operated in a given month, 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.

 

Predecessor refers to Worldwide Vision Limited and its consolidated subsidiaries. Worldwide Vision Limited operated the trade of Bumble Inc. prior to the consummation of the acquisition (the “Sponsor Acquisition”) on January 29, 2020 of a majority stake in Worldwide Vision Limited by a group of investment funds managed by Blackstone Inc.

 

 


 

Successor refers to Buzz Holdings L.P. and its consolidated subsidiaries from the Sponsor Acquisition to the initial public offering on February 16, 2021 and to Bumble Inc. and its consolidated subsidiaries after the initial public offering.

 

Total Average Revenue per Paying User or Total ARPPU is calculated based on total revenue in any measurement period, excluding any revenue generated from advertising and partnerships or affiliates, divided by the Total Paying Users in such period divided by the number of months in the period.

 

Total Paying Users is the sum of Bumble App Paying Users and Badoo App and Other Paying Users.

 

Non-GAAP Financial Measures

 

We report our financial results in accordance with GAAP, however, management believes that certain non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. These measures include: adjusted EBITDA, adjusted EBITDA margin, free cash flow and free cash flow conversion. We believe adjusted EBITDA and adjusted EBITDA margin provide visibility to the underlying continuing operating performance by excluding the impact of certain expenses, including income tax (benefit) provision, interest (income) expense, depreciation and amortization, stock-based compensation expense, employer costs related to stock-based compensation, foreign exchange (gain) loss, changes in fair value of contingent earn-out liability, interest rate swaps and investments, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business, tax receivable agreement liability remeasurement expense and impairment loss, as management does not believe these expenses are representative of our core earnings. In addition to adjusted EBITDA and adjusted EBITDA margin, we believe free cash flow and free cash flow conversion provide useful information regarding how cash provided by operating activities compares to the capital expenditures required to maintain and grow our business, and our available liquidity, after funding such capital expenditures, to service our debt, fund strategic initiatives and strengthen our balance sheet, as well as our ability to convert our earnings to cash. Additionally, we believe such metrics are widely used by investors, securities analysis, ratings agencies and other parties in evaluating liquidity and debt-service capabilities. We calculate free cash flow and free cash flow conversion using methodologies that we believe can provide useful supplemental information to help investors better understand underlying trends in our business.

 

Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP.

 

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) is defined as net earnings (loss) excluding income tax (benefit) provision, interest (income) expense, depreciation and amortization, stock-based compensation expense, employer costs related to stock-based compensation, foreign exchange (gain) loss, changes in fair value of contingent earn-out liability, interest rate swaps and investments, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business, tax receivable agreement liability remeasurement expense and impairment loss.

 

Adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

 

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures.

 

Free cash flow conversion represents free cash flow as a percentage of adjusted EBITDA.

 

Operating cash flow conversion represents net cash provided by (used in) operating activities as a percentage of net earnings (loss).

 

Forward-Looking Statements

 

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements reflecting our current views with respect to, among other things, our operations, our financial performance, our industry, our tax receivable agreement liability and additional paid-in capital as of December 31, 2021, the impact of the Coronavirus Disease 2019 (“COVID-19”) on our business and other non-historical statements, including without limitation the statements in the “Financial Outlook” section of this press release. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believe(s),” “expect(s),” “potential,” “continue(s),” “may,” “will,” “should,” “could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,” “plan(s),” “estimate(s),” “anticipates,” “projection,” “will likely result” and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause

 


 

actual outcomes or results to differ materially from those indicated in these statements. These factors include, but are not limited to, the following:

 

our ability to retain existing users or attract new users and to convert users to paying users
competition and changes in the competitive landscape of our market
our ability to distribute our dating products through third parties, such as Apple App Store or Google Play Store, and offset related fees
the impact of data security breaches or cyber attacks on our systems and the costs of remediation related to any such incidents
the continued development and upgrading of our technology platform and our ability to adapt to rapid technological developments and changes in a timely and cost-effective manner
our ability to obtain, maintain, protect and enforce intellectual property rights and successfully defend against claims of infringement, misappropriation or other violations of third-party intellectual property
our ability to comply with complex and evolving U.S. and international laws and regulations relating to our business, including 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 COVID-19 (and other widespread health emergencies or pandemics) and measures taken in response, lower consumer confidence in our business or in the online dating industry generally, recessionary conditions, increased unemployment rates, stagnant or declining wages, political unrest, armed conflicts or natural disasters

 

For additional information on these and other factors that could cause Bumble’s actual results to differ materially from expected results, please see our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2020 and 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, and Fruitz. The Bumble platform enables people to connect and build equitable and healthy relationships. Founded by CEO Whitney Wolfe Herd in 2014, Bumble was one of the first dating apps built with women at the center. Badoo, which was founded in 2006, is one of the pioneers of web and mobile dating products. Fruitz, founded in 2017, encourages open and honest communication of dating intentions through playful fruit metaphors.

 

For more information about Bumble, please visit www.bumble.com and follow @Bumble on social platforms.

 

Source: Bumble Inc.

 

Investor Contact

ir@team.bumble.com

 

Media Contact

 


 

press@team.bumble.com

 

 


 

Bumble Inc.

Consolidated Balance Sheets

(in thousands, except share and per share information)

 

 

December 31,
2021

 

 

December 31,
2020

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

369,175

 

 

$

128,029

 

Accounts receivable

 

 

47,538

 

 

 

41,595

 

Other current assets

 

 

52,751

 

 

 

81,387

 

Total current assets

 

 

469,464

 

 

 

251,011

 

Right-of-use assets

 

 

26,410

 

 

 

11,711

 

Lease receivable

 

 

 

 

 

1,069

 

Property and equipment, net

 

 

14,627

 

 

 

16,833

 

Goodwill

 

 

1,540,112

 

 

 

1,540,915

 

Intangible assets, net

 

 

1,696,798

 

 

 

1,812,410

 

Deferred tax assets, net

 

 

19,090

 

 

 

 

Other noncurrent assets

 

 

9,319

 

 

 

3,319

 

Total assets

 

$

3,775,820

 

 

$

3,637,268

 

LIABILITIES AND BUMBLE INC. SHAREHOLDERS' / BUZZ HOLDINGS L.P.
OWNERS’ EQUITY

 

 

 

 

 

 

Accounts payable

 

$

19,169

 

 

$

23,741

 

Deferred revenue

 

 

39,924

 

 

 

31,269

 

Accrued expenses and other current liabilities

 

 

111,482

 

 

 

180,986

 

Current portion of long-term debt, net

 

 

2,588

 

 

 

5,338

 

Total current liabilities

 

 

173,163

 

 

 

241,334

 

Long-term debt, net

 

 

620,351

 

 

 

820,876

 

Deferred tax liabilities, net

 

 

 

 

 

428,087

 

Tax receivable agreement liability

 

 

388,780

 

 

 

 

Other liabilities

 

 

119,246

 

 

 

62,190

 

Total liabilities

 

$

1,301,540

 

 

$

1,552,487

 

Commitments and contingencies

 

 

 

 

 

 

Bumble Inc. Shareholders’ / Buzz Holdings L.P. Owners’ Equity:

 

 

 

 

 

 

Class A common stock (par value $0.01 per share, 6,000,000,000 shares authorized; 129,212,949 and no shares issued and outstanding as of December 31, 2021 and 2020, respectively)

 

 

1,292

 

 

 

 

Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 20 and 100 shares issued and outstanding as of December 31, 2021 and 2020, respectively)

 

 

 

 

 

 

Preferred stock (par value $0.01; authorized 600,000,000 shares; no shares issued and outstanding as of December 31, 2021 and 2020, respectively)

 

 

 

 

 

 

Limited Partners’ interest

 

 

 

 

 

1,903,121

 

Additional paid-in capital

 

 

1,586,781

 

 

 

 

Accumulated deficit

 

 

(52,856

)

 

 

 

Accumulated other comprehensive income

 

 

80,629

 

 

 

180,852

 

Total Bumble Inc. shareholders’ / Buzz Holdings L.P. owners’ equity

 

 

1,615,846

 

 

 

2,083,973

 

Noncontrolling interests

 

 

858,434

 

 

 

808

 

Total owners’ / shareholders’ equity

 

 

2,474,280

 

 

 

2,084,781

 

Total liabilities and owners’ / shareholders’ equity

 

$

3,775,820

 

 

$

3,637,268

 

 

 


 

Bumble Inc.

Consolidated Statements of Operations

(in thousands, except per share / unit data)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Quarter
Ended
December
31, 2021

 

 

Quarter
Ended
December
31, 2020

 

 

Year
Ended
December 31,
2021

 

 

Period from
January 29,
through
December
31, 2020

 

 

 

Period from
January 1,
through
January
28, 2020

 

Revenue

 

$

208,221

 

 

$

165,605

 

 

$

765,660

 

 

$

542,192

 

 

 

$

39,990

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

54,750

 

 

 

44,612

 

 

 

209,921

 

 

 

146,629

 

 

 

 

10,790

 

Selling and marketing expense

 

 

60,057

 

 

 

48,077

 

 

 

211,711

 

 

 

152,588

 

 

 

 

11,157

 

General and administrative expense

 

 

50,107

 

 

 

50,495

 

 

 

265,738

 

 

 

178,615

 

 

 

 

44,907

 

Product development expense

 

 

21,720

 

 

 

17,079

 

 

 

105,917

 

 

 

46,994

 

 

 

 

4,087

 

Depreciation and amortization expense

 

 

26,174

 

 

 

26,018

 

 

 

107,056

 

 

 

91,767

 

 

 

 

408

 

Total operating costs and expenses

 

 

212,808

 

 

 

186,281

 

 

 

900,343

 

 

 

616,593

 

 

 

 

71,349

 

Operating earnings (loss)

 

 

(4,587

)

 

 

(20,676

)

 

 

(134,683

)

 

 

(74,401

)

 

 

 

(31,359

)

Interest income (expense)

 

 

(5,997

)

 

 

(7,430

)

 

 

(25,609

)

 

 

(22,134

)

 

 

 

50

 

Other income (expense), net

 

 

(4,329

)

 

 

(8,999

)

 

 

11,166

 

 

 

(5,525

)

 

 

 

(882

)

Income (loss) before income tax

 

 

(14,913

)

 

 

(37,105

)

 

 

(149,126

)

 

 

(102,060

)

 

 

 

(32,191

)

Income tax benefit (provision)

 

 

234

 

 

 

11,017

 

 

 

436,071

 

 

 

(8,126

)

 

 

 

(365

)

Net earnings (loss)

 

 

(14,679

)

 

 

(26,088

)

 

 

286,945

 

 

 

(110,186

)

 

 

 

(32,556

)

Net earnings (loss) attributable to noncontrolling interests

 

 

(4,636

)

 

 

908

 

 

 

(30,834

)

 

 

808

 

 

 

 

1,917

 

Net earnings (loss) attributable to Bumble Inc. shareholders / Buzz Holdings L.P. owners / Worldwide Vision Limited shareholders

 

$

(10,043

)

 

$

(26,996

)

 

$

317,779

 

 

$

(110,994

)

 

 

$

(34,473

)

Net earnings (loss) per share / unit attributable to Bumble Inc. shareholders / Buzz Holdings L.P. owners

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share / unit

 

$

(0.08

)

 

$

(0.01

)

 

$

1.52

 

 

$

(0.05

)

 

 

 

 

Diluted earnings (loss) per share / unit

 

$

(0.08

)

 

$

(0.01

)

 

$

1.48

 

 

$

(0.05

)

 

 

 

 

 

 


 

Bumble Inc.

Consolidated Statements of Cash Flows

(in thousands)

 

 

Successor

 

 

 

Predecessor

 

 

 

Quarter
Ended
December
31, 2021

 

 

Quarter Ended
December
31, 2020

 

 

Year
Ended
December 31,
2021

 

 

Period from
January 29,
through
December
31, 2020

 

 

 

Period from
January 1,
through
January
28, 2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

(14,679

)

 

$

(26,088

)

 

$

286,945

 

 

$

(110,186

)

 

 

$

(32,556

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

26,174

 

 

 

26,018

 

 

 

107,056

 

 

 

91,767

 

 

 

 

408

 

Impairment loss

 

 

26,431

 

 

 

 

 

 

26,431

 

 

 

 

 

 

 

 

Change in fair value of interest swap

 

 

(3,804

)

 

 

(242

)

 

 

(6,593

)

 

 

1,586

 

 

 

 

 

Change in fair value of contingent earn-out liability

 

 

(21,759

)

 

 

8,700

 

 

 

55,900

 

 

 

27,800

 

 

 

 

 

Non-cash lease expense

 

 

1,191

 

 

 

(3,694

)

 

 

5,438

 

 

 

(109

)

 

 

 

(226

)

Deferred income tax

 

 

(4,818

)

 

 

(22,835

)

 

 

(446,629

)

 

 

(789

)

 

 

 

26

 

Stock-based compensation expense

 

 

24,408

 

 

 

14,350

 

 

 

123,910

 

 

 

27,468

 

 

 

 

4,156

 

Net foreign exchange difference

 

 

10,949

 

 

 

1,964

 

 

 

4,084

 

 

 

6,945

 

 

 

 

(198

)

Research and development tax credit

 

 

(324

)

 

 

(307

)

 

 

(1,322

)

 

 

(1,211

)

 

 

 

 

Other, net

 

 

613

 

 

 

169

 

 

 

6,093

 

 

 

3,604

 

 

 

 

31

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(4,999

)

 

 

19,933

 

 

 

(9,953

)

 

 

10,737

 

 

 

 

(17,599

)

Other current assets

 

 

29,612

 

 

 

(23,261

)

 

 

24,328

 

 

 

(46,949

)

 

 

 

(2,175

)

Accounts payable

 

 

9,594

 

 

 

9,649

 

 

 

(3,531

)

 

 

2,970

 

 

 

 

12,984

 

Deferred revenue

 

 

881

 

 

 

1,479

 

 

 

8,654

 

 

 

22,169

 

 

 

 

289

 

Legal liabilities

 

 

(746

)

 

 

(5,249

)

 

 

(46,377

)

 

 

(18,374

)

 

 

 

(521

)

Accrued expenses and other current liabilities

 

 

14,514

 

 

 

54,613

 

 

 

(30,545

)

 

 

38,806

 

 

 

 

32,075

 

Other, net

 

 

677

 

 

 

21

 

 

 

948

 

 

 

27

 

 

 

 

 

Net cash provided by (used in) operating activities

 

 

93,915

 

 

 

55,220

 

 

 

104,837

 

 

 

56,261

 

 

 

 

(3,306

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(4,265

)

 

 

(4,853

)

 

 

(13,653

)

 

 

(10,632

)

 

 

 

(1,045

)

Acquisition of business, net of cash acquired

 

 

 

 

 

(36,444

)

 

 

 

 

 

(2,837,706

)

 

 

 

 

Other, net

 

 

1,138

 

 

 

(1,866

)

 

 

1,169

 

 

 

(2,313

)

 

 

 

16

 

Net cash used in investing activities

 

 

(3,127

)

 

 

(43,163

)

 

 

(12,484

)

 

 

(2,850,651

)

 

 

 

(1,029

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of Class A common stock sold in initial public offering, net of offering costs

 

 

 

 

 

 

 

 

2,358,371

 

 

 

 

 

 

 

 

Payments to purchase and retire common stock

 

 

 

 

 

 

 

 

(1,018,365

)

 

 

 

 

 

 

 

Purchase of Common Units from Pre-IPO Common Unitholders
in the initial public offering

 

 

 

 

 

 

 

 

(973,289

)

 

 

 

 

 

 

 

Proceeds from exercise of options

 

 

 

 

 

 

 

 

545

 

 

 

 

 

 

 

 

Proceeds from repayments of loans to related companies

 

 

 

 

 

 

 

 

 

 

 

41,929

 

 

 

 

 

Debt issuance costs

 

 

 

 

 

(4,824

)

 

 

 

 

 

(21,105

)

 

 

 

 

Limited Partners’ interest

 

 

 

 

 

25,626

 

 

 

 

 

 

2,360,412

 

 

 

 

 

Proceeds from term loan

 

 

 

 

 

275,000

 

 

 

 

 

 

850,000

 

 

 

 

 

Repayment of term loan

 

 

(1,438

)

 

 

(2,125

)

 

 

(206,438

)

 

 

(5,000

)

 

 

 

 

Issuance of loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

 

 

 

(360,000

)

 

 

 

 

 

(360,000

)

 

 

 

 

Withholding tax paid on behalf of employees on stock based awards

 

 

(9,338

)

 

 

 

 

 

(9,338

)

 

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(10,776

)

 

 

(66,323

)

 

 

151,486

 

 

 

2,866,236

 

 

 

 

 

Effects of exchange rate changes on cash and cash equivalents

 

 

(2,412

)

 

 

6,199

 

 

 

(2,950

)

 

 

2,513

 

 

 

 

813

 

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

 

 

77,600

 

 

 

(48,067

)

 

 

240,889

 

 

 

74,359

 

 

 

 

(3,522

)

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

 

 

291,575

 

 

 

176,353

 

 

 

128,286

 

 

 

53,927

 

 

 

 

57,449

 

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

 

$

369,175

 

 

$

128,286

 

 

$

369,175

 

 

$

128,286

 

 

 

$

53,927

 

Less restricted cash

 

 

 

 

 

257

 

 

 

 

 

 

257

 

 

 

 

 

Cash and cash equivalents, end of the period

 

$

369,175

 

 

$

128,029

 

 

$

369,175

 

 

$

128,029

 

 

 

$

53,927

 

 

 


 

Bumble Inc.

Reconciliation of GAAP to NON-GAAP Financial Measures

 

 

Reconciliation of Net Earnings (Loss) to Adjusted EBITDA and Reconciliation of Net Cash Provided By (Used in) Operating Activities to Free Cash Flow

 

 

 

Successor

 

 

 

Predecessor

 

(in thousands, except percentages)

 

Quarter
Ended
December
31, 2021

 

 

Quarter
Ended
December 31,
2020

 

 

Year
Ended
December 31,
2021

 

 

Period from
January 29,
through
December 31,
2020

 

 

 

Period from
January 1,
through
January 28,
2020

 

Net earnings (loss)

 

$

(14,679

)

 

$

(26,088

)

 

$

286,945

 

 

$

(110,186

)

 

 

$

(32,556

)

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) provision

 

 

(234

)

 

 

(11,017

)

 

 

(436,071

)

 

 

8,126

 

 

 

 

365

 

Interest (income) expense

 

 

5,997

 

 

 

7,430

 

 

 

25,609

 

 

 

22,134

 

 

 

 

(50

)

Depreciation and amortization

 

 

26,174

 

 

 

26,018

 

 

 

107,056

 

 

 

91,767

 

 

 

 

408

 

Stock-based compensation expense

 

 

24,408

 

 

 

14,350

 

 

 

123,910

 

 

 

27,468

 

 

 

 

336

 

Employer costs related to stock-based compensation(1)

 

 

 

 

 

 

 

 

2,438

 

 

 

 

 

 

 

 

Litigation costs, net of insurance reimbursements(2)

 

 

3,149

 

 

 

1,357

 

 

 

6,943

 

 

 

(6,008

)

 

 

 

 

Foreign exchange (gain) loss (3)

 

 

6,174

 

 

 

9,212

 

 

 

(4,476

)

 

 

14,133

 

 

 

 

523

 

Changes in fair value of interest rate swaps(4)

 

 

(3,804

)

 

 

(242

)

 

 

(6,593

)

 

 

1,586

 

 

 

 

 

Transaction and other costs(5)

 

 

861

 

 

 

14,403

 

 

 

19,093

 

 

 

66,251

 

 

 

 

40,345

 

Changes in fair value of contingent earn-out liability

 

 

(21,759

)

 

 

8,700

 

 

 

55,900

 

 

 

27,800

 

 

 

 

 

Changes in fair value of investments

 

 

(767

)

 

 

 

 

 

(1,100

)

 

 

 

 

 

 

 

Tax receivable agreement liability