Services

Does Bumble Have a Good Case for the Reopening Trade?

Bumble Inc. (NASDAQ: BMBL) reported its most recent quarterly results after the markets closed on Wednesday, and this the dating app company also gave a rosy outlook about the reopening trade. Earlier this week analysts finally had a chance to weigh in on the stock after the post-IPO quiet period had ended.

During the fourth quarter, Bumble claimed about 12.7% of the U.S. dating market, with about 5.5 million average monthly users and 2.2 million downloads in the United States alone.

The company went public last month, raising $2.2 billion in its initial public offering, as well as making Whitney Wolfe Herd the youngest female chief executive to bring a company public.

Bumble posted a 31% increase in revenue to $165.6 million from $126.3 million in the same period last year. Analysts had expected $163.3 million in revenue. The Bumble app revenue increased 46.6% to $105.8 million, and Badoo app revenue increased 10.5% to $59.8 million.

Total paying users increased 32.5% year over year to 2.7 million, compared to 2.0 million. Total Average revenue per paying user was $20.02, compared to $19.99 last year.

Looking ahead, Bumble has forecast revenue in the range of $163 million to $165 million and adjusted EBITDA of $41 million to $42 million for the first quarter.

The company went on to say that it expects pent-up demand from people who had been avoiding dating in person due to the COVID-19 pandemic. While dating apps have benefitted from social distancing, people are still eager to get back to “normal” life.

Here’s what a few analysts said about Bumble stock this week:

  • JPMorgan: Neutral with a $60 price target
  • Jefferies: Buy with an $80 price target
  • Cowen: Outperform with a $70 price target
  • Raymond James: Market Perform
  • Morgan Stanley: Equal Weight with a $56 target
  • Citigroup: Buy with a $75 price target
  • BMO Capital Markets: Market Perform with a $65 target
  • Goldman Sachs: Neutral with a $46 price target
  • Stifel: Buy with a $75 price target

Bumble stock traded up about 10% to $69.54 on Thursday and has a post-IPO range of $57.53 to $84.80.