Does Bumble Have a Good Case for the Reopening Trade?
When Bumble reported its most recent quarterly results, the dating app company gave a rosy outlook about the reopening trade.
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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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
