8-K
0001830043false00018300432022-08-102022-08-10

 

 

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): August 10, 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 August 10, 2022, Bumble Inc. issued a press release announcing earnings for the second quarter ended June 30, 2022. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein in its entirety.

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 August 10, 2022, announcing earnings for the second quarter ended June 30, 2022

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: August 10, 2022

 

By:

/s/ Anuradha B. Subramanian

 

 

Name:

 Anuradha B. Subramanian

 

 

Title:

 Chief Financial Officer

 

3


EX-99.1

 

Exhibit 99.1

 

 

Bumble Inc. Announces Second Quarter 2022 Results

 

Total Revenue Increased 18% to $220 million

Bumble App Revenue Increased 33% to $170 million

Bumble App Paying Users Increased 31% to 1.9 million; Grew 149,000 Quarter Over Quarter

 

AUSTIN, Texas, August 10, 2022 -­ Bumble Inc. (NASDAQ: BMBL), the parent company of Bumble, Badoo, and Fruitz, today reported financial results for the second quarter ended June 30, 2022.

"Our strong second quarter results reflect the strength of our products, the relevance of our mission and the enduring fundamental human need for love and connection," said Whitney Wolfe Herd, Founder and CEO of Bumble Inc. "With its powerful women-first approach, Bumble App drove robust paying user growth, while expanding to more markets around the globe. Across the company, we believe our focus on product innovation, underscored by our drive to create an inclusive and trusted experience for our users, continues to differentiate us from the competition while delivering profitable growth."

 

Second Quarter 2022 Financial and Operational Highlights:

(All comparisons relative to the Second Quarter 2021)

Total Revenue increased 18.4% to $220.5 million, compared to $186.2 million. This includes an unfavorable impact of $9.4 million from foreign currency movements year over year.
o
Bumble App Revenue grew 33.2% to $169.6 million.
o
Badoo App and Other Revenue declined 13.7% to $50.8 million.
Total Paying Users increased to 3.0 million, compared to 2.9 million.
Total Average Revenue per Paying User ("ARPPU") increased to $23.65, compared to $20.88.
Net loss was $6.4 million or (2.9)% of revenue, compared to net loss of $11.1 million, or (6.0)% of revenue.
Adjusted EBITDA was $54.8 million, or 24.8% of revenue, compared to $51.9 million, or 27.9% of revenue.

 

“We are encouraged by the strong momentum of our business in this dynamic operating environment,” said Anu Subramanian, CFO of Bumble Inc. “We delivered an 18% increase in total revenue and drove strong bottom-line results, with adjusted EBITDA of $55 million exceeding our Q2 outlook. As we move into the second half of the year, we remain focused on executing on our growth initiatives and are confident in our ability to drive 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, 2022

 

 

Three Months Ended June 30, 2021

 

Key Operating Metrics

 

 

 

 

 

 

Bumble App Paying Users

 

 

1,924.5

 

 

 

1,473.0

 

Badoo App and Other Paying Users

 

 

1,096.2

 

 

 

1,454.3

 

Total Paying Users

 

 

3,020.7

 

 

 

2,927.3

 

Bumble App Average Revenue per Paying User

 

$

29.38

 

 

$

28.81

 

Badoo App and Other Average Revenue per Paying User

 

$

13.60

 

 

$

12.85

 

Total Average Revenue per Paying User

 

$

23.65

 

 

$

20.88

 

 

Balance Sheet:

 

As of June 30, 2022, total cash and cash equivalents were $334.6 million and total debt was $621.6 million.

 

Financial results will not be final until Bumble files its quarterly report on Form 10-Q 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 third quarter and year ending December 31, 2022 to be:

 

Third quarter 2022:

Total Revenue in the range of $236 million to $240 million, which includes:
o
Impact from the conflict in Ukraine of $6 million, primarily in Badoo App and Other Revenue.
o
An estimated unfavorable impact of $12 million from foreign currency movements.
Bumble App Revenue of $184 million to $187 million. This includes an estimated unfavorable impact of $6 million from foreign currency movements.
Adjusted EBITDA in the range of $58 million to $60 million.

 

Full year 2022:

Total Revenue in the range of $920 million to $930 million, which includes:
o
Impact from the conflict in Ukraine of $20 million, primarily in Badoo App and Other Revenue.
o
An estimated unfavorable impact of $36 million from foreign currency movements, an increase of $8 million from our May outlook and an increase of $16 million from our March outlook.
Bumble App year over year revenue growth of 32% to 34%. This includes an estimated unfavorable impact of $18 million from foreign currency movements, an increase of $3 million from our May outlook and a $7 million increase from our March outlook.
Adjusted EBITDA margin in the range of 24.5% to 25%, including $16 million of incremental expenses the Company expects to incur from complying with the Google Play billing mandate which started on April 1, 2022.

 

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.

 

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 live webcast of its conference call to discuss its second quarter 2022 financial results at 4:30 p.m. Eastern Time today, August 10, 2022. 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 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 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.

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.

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 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 (excluding Fruitz), 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 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. 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 (benefit) 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 and 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, our industry, and 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 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 the Coronavirus Disease 2019 ("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, changes in inflation or interest rates, 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 Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2022, as such factors may be updated from time to time in our subsequent filings with the SEC, 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.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share information)

(Unaudited)

 

 

June 30, 2022

 

 

December 31, 2021

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

334,645

 

 

$

369,175

 

Accounts receivable

 

 

54,729

 

 

 

47,538

 

Other current assets

 

 

28,319

 

 

 

52,751

 

Total current assets

 

 

417,693

 

 

 

469,464

 

Right-of-use assets

 

 

20,469

 

 

 

26,410

 

Property and equipment, net

 

 

13,501

 

 

 

14,627

 

Goodwill

 

 

1,579,050

 

 

 

1,540,112

 

Intangible assets, net

 

 

1,691,881

 

 

 

1,696,798

 

Deferred tax assets, net

 

 

22,365

 

 

 

19,090

 

Other noncurrent assets

 

 

22,860

 

 

 

9,319

 

Total assets

 

$

3,767,819

 

 

$

3,775,820

 

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

 

 

 

 

 

 

Accounts payable

 

$

10,125

 

 

$

19,169

 

Deferred revenue

 

 

44,470

 

 

 

39,924

 

Accrued expenses and other current liabilities

 

 

154,676

 

 

 

111,482

 

Current portion of long-term debt, net

 

 

2,588

 

 

 

2,588

 

Total current liabilities

 

 

211,859

 

 

 

173,163

 

Long-term debt, net

 

 

619,057

 

 

 

620,351

 

Deferred tax liabilities, net

 

 

10,127

 

 

 

 

Payable to related parties pursuant to a tax receivable agreement

 

 

388,980

 

 

 

388,780

 

Other liabilities

 

 

21,282

 

 

 

119,246

 

Total liabilities

 

 

1,251,305

 

 

 

1,301,540

 

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; 129,559,112 and 129,212,949 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively)

 

 

1,296

 

 

 

1,292

 

Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 20 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively)

 

 

 

 

 

 

Preferred stock (par value $0.01; authorized 600,000,000 shares; no shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively)

 

 

 

 

 

 

Additional paid-in capital

 

 

1,621,917

 

 

 

1,586,781

 

Accumulated deficit

 

 

(40,853

)

 

 

(52,856

)

Accumulated other comprehensive income

 

 

73,667

 

 

 

80,629

 

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

 

 

1,656,027

 

 

 

1,615,846

 

Noncontrolling interests

 

 

860,487

 

 

 

858,434

 

Total shareholders’ / owners’ equity

 

 

2,516,514

 

 

 

2,474,280

 

Total liabilities and shareholders’ / owners’ equity

 

$

3,767,819

 

 

$

3,775,820

 

 

 


 

Bumble Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share / unit information)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

Revenue

 

$

220,454

 

 

$

186,217

 

 

$

431,653

 

 

$

356,930

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

62,757

 

 

 

50,797

 

 

 

119,538

 

 

 

98,544

 

Selling and marketing expense

 

 

59,483

 

 

 

49,711

 

 

 

116,312

 

 

 

96,549

 

General and administrative expense

 

 

51,375

 

 

 

43,381

 

 

 

77,821

 

 

 

169,905

 

Product development expense

 

 

22,456

 

 

 

24,921

 

 

 

47,651

 

 

 

59,966

 

Depreciation and amortization expense

 

 

27,151

 

 

 

26,905

 

 

 

54,080

 

 

 

53,860

 

Total operating costs and expenses

 

 

223,222

 

 

 

195,715

 

 

 

415,402

 

 

 

478,824

 

Operating earnings (loss)

 

 

(2,768

)

 

 

(9,498

)

 

 

16,251

 

 

 

(121,894

)

Interest income (expense)

 

 

(6,281

)

 

 

(5,921

)

 

 

(12,164

)

 

 

(13,650

)

Other income (expense), net

 

 

4,954

 

 

 

4,731

 

 

 

18,184

 

 

 

11,722

 

Income (loss) before income taxes

 

 

(4,095

)

 

 

(10,688

)

 

 

22,271

 

 

 

(123,822

)

Income tax benefit (provision)

 

 

(2,328

)

 

 

(459

)

 

 

(4,756

)

 

 

436,117

 

Net earnings (loss)

 

 

(6,423

)

 

 

(11,147

)

 

 

17,515

 

 

 

312,295

 

Net earnings (loss) attributable to noncontrolling interests

 

 

(2,031

)

 

 

(4,064

)

 

 

5,512

 

 

 

(22,412

)

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

 

$

(4,392

)

 

$

(7,083

)

 

$

12,003

 

 

$

334,707

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share / unit

 

$

(0.03

)

 

$

(0.06

)

 

$

0.09

 

 

$

1.67

 

Diluted earnings (loss) per share / unit

 

$

(0.03

)

 

$

(0.06

)

 

$

0.09

 

 

$

1.62

 

 

 


 

Bumble Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

(6,423

)

 

$

(11,147

)

 

$

17,515

 

 

$

312,295

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

27,151

 

 

 

26,905

 

 

 

54,080

 

 

 

53,860

 

Impairment loss

 

 

4,388

 

 

 

 

 

 

4,388

 

 

 

 

Changes in fair value of interest rate swaps

 

 

(2,813

)

 

 

201

 

 

 

(13,630

)

 

 

(2,743

)

Changes in fair value of contingent earn-out liability

 

 

1,314

 

 

 

484

 

 

 

(19,395

)

 

 

72,438

 

Non-cash lease expense

 

 

1,204

 

 

 

1,428

 

 

 

2,373

 

 

 

2,857

 

Deferred income tax

 

 

(314

)

 

 

(159

)

 

 

(3,275

)

 

 

(441,841

)

Stock-based compensation expense

 

 

22,447

 

 

 

29,916

 

 

 

40,004

 

 

 

75,739

 

Net foreign exchange difference

 

 

170

 

 

 

(5,114

)

 

 

(5,535

)

 

 

(7,421

)

Other, net

 

 

(7,676

)

 

 

1,088

 

 

 

689

 

 

 

3,875

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(4,237

)

 

 

(4,663

)

 

 

(3,743

)

 

 

(25,738

)

Other current assets

 

 

27,065

 

 

 

1,795

 

 

 

21,076

 

 

 

(5,439

)

Accounts payable

 

 

1,198

 

 

 

578

 

 

 

(9,157

)

 

 

(8,616

)

Deferred revenue

 

 

3,791

 

 

 

3,959

 

 

 

3,897

 

 

 

6,060

 

Legal liabilities

 

 

(6,370

)

 

 

(7,384

)

 

 

(7,120

)

 

 

(37,627

)

Accrued expenses and other current liabilities

 

 

(35,488

)

 

 

(23,185

)

 

 

(37,407

)

 

 

(29,092

)

Other, net

 

 

2

 

 

 

(302

)

 

 

7

 

 

 

(46

)

Net cash provided by (used in) operating activities

 

 

25,409

 

 

 

14,400

 

 

 

44,767

 

 

 

(31,439

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(3,053

)

 

 

(2,840

)

 

 

(8,049

)

 

 

(5,552

)

Acquisition of business, net of cash acquired

 

 

 

 

 

 

 

 

(69,720

)

 

 

 

Other, net

 

 

 

 

 

34

 

 

 

-

 

 

 

3

 

Net cash provided by (used in) investing activities

 

 

(3,053

)

 

 

(2,806

)

 

 

(77,769

)

 

 

(5,549

)

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

)

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

 

 

(486

)

 

 

 

 

 

(6,194

)

 

 

 

Repayment of term loan

 

 

(1,437

)

 

 

(6,096

)

 

 

(2,875

)

 

 

(206,096

)

Net cash provided by (used in) financing activities

 

 

(1,923

)

 

 

(6,096

)

 

 

(9,069

)

 

 

160,621

 

Effects of exchange rate changes on cash and cash equivalents

 

 

5,424

 

 

 

264

 

 

 

7,541

 

 

 

102

 

Net increase (decrease) in cash and cash equivalents

 

 

25,857

 

 

 

5,762

 

 

 

(34,530

)

 

 

123,735

 

Cash and cash equivalents, beginning of the period

 

 

308,788

 

 

 

246,259

 

 

 

369,175

 

 

 

128,286

 

Cash and cash equivalents, end of the period

 

$

334,645

 

 

$

252,021

 

 

$

334,645

 

 

$

252,021

 

 

 


 

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, 2022

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

Net earnings (loss)

 

$

(6,423

)

 

$

(11,147

)

 

$

17,515

 

 

$

312,295

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) provision

 

 

2,328

 

 

 

459

 

 

 

4,756

 

 

 

(436,117

)

Interest (income) expense

 

 

6,281

 

 

 

5,921

 

 

 

12,164

 

 

 

13,650

 

Depreciation and amortization

 

 

27,151

 

 

 

26,905

 

 

 

54,080

 

 

 

53,860

 

Stock-based compensation expense

 

 

22,447

 

 

 

29,916

 

 

 

40,004

 

 

 

75,739

 

Employer costs related to stock-based compensation (1)

 

 

125

 

 

 

 

 

 

1,197

 

 

 

 

Litigation costs, net of insurance reimbursements (2)

 

 

1,023

 

 

 

1,541

 

 

 

3,841

 

 

 

1,775

 

Foreign exchange (gain) loss (3)

 

 

(2,104

)

 

 

(4,796

)

 

 

(4,499

)

 

 

(8,639

)

Changes in fair value of interest rate swaps(4)

 

 

(2,813

)

 

 

201

 

 

 

(13,630

)

 

 

(2,743

)

Transaction and other costs(5)

 

 

1,055

 

 

 

2,522

 

 

 

4,164

 

 

 

16,024

 

Changes in fair value of contingent earn-out liability

 

 

1,314

 

 

 

484

 

 

 

(19,395

)

 

 

72,438

 

Changes in fair value of investments

 

 

 

 

 

(123

)

 

 

 

 

 

(319

)

Impairment loss (6)

 

 

4,388

 

 

 

 

 

 

4,388

 

 

 

 

Adjusted EBITDA

 

$

54,772

 

 

$

51,883

 

 

$

104,585

 

 

$

97,963

 

Net earnings (loss) margin(7)

 

 

(2.9

)%

 

 

(6.0

)%

 

 

4.1

%

 

 

87.5

%

Adjusted EBITDA margin

 

 

24.8

%

 

 

27.9

%

 

 

24.2

%

 

 

27.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

25,409

 

 

$

14,400

 

 

$

44,767

 

 

$

(31,439

)

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(3,053

)

 

 

(2,840

)

 

 

(8,049

)

 

 

(5,552

)

Free cash flow

 

$

22,356

 

 

$

11,560

 

 

$

36,718

 

 

$

(36,991

)

Operating cash flow conversion

 

 

(395.6

)%

 

 

(129.2

)%

 

 

255.6

%

 

 

(10.1

)%

Free cash flow conversion

 

 

40.8

%

 

 

22.3

%

 

 

35.1

%

 

 

(37.8

)%

 

(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 on interest rate swaps.
(5)
Represents transaction costs related to acquisitions and our offerings (IPO, the Reorganization and the secondary offering) such as legal, accounting, advisory fees and other related costs. Amounts for 2022 also include 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.
(7)
Net earnings margin for the six months ended June 30, 2021 includes a $441.5 million tax benefit related to the reversal of a deferred tax liability due to a restructuring of the Company’s international operations.

 

 

 


 

Supplementary Information (Unaudited)

 

Stock-Based Compensation Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended June 30, 2022

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

Cost of revenue

 

$

971

 

 

$

604

 

 

$

1,919

 

 

$

2,211

 

Selling and marketing expense

 

 

2,091

 

 

 

2,500

 

 

 

769

 

 

 

7,641

 

General and administrative expense

 

 

12,149

 

 

 

17,960

 

 

 

22,547

 

 

 

37,868

 

Product development expense

 

 

7,236

 

 

 

8,852

 

 

 

14,769

 

 

 

28,019

 

Total stock-based compensation expense

 

$

22,447

 

 

$

29,916

 

 

$

40,004

 

 

$

75,739

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended June 30, 2022

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

Cost of revenue GAAP

 

$

62,757

 

 

$

50,797

 

 

$

119,538

 

 

$

98,544

 

Stock-based compensation expense

 

 

(971

)

 

 

(604

)

 

 

(1,919

)

 

 

(2,211

)

Payroll tax expense related to stock-based compensation

 

 

(11

)

 

 

 

 

 

(62

)

 

 

 

Transaction and other costs

 

 

(56

)

 

 

 

 

 

(139

)

 

 

 

Cost of revenue non-GAAP

 

$

61,719

 

 

$

50,193

 

 

$

117,418

 

 

$

96,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Three Months Ended June 30, 2022

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2021

 

Selling and marketing expense GAAP

 

$

59,483