Technology

Bumble beats sales estimates in its first quarterly report as a public company. Stocks rise

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Whitney Wolfe Herd speaks on stage in Dana Point, California.

Joe Scarnici | Getty Images Entertainment

Bumble posted sales of $ 165.6 million on Wednesday, beating Wall Street forecasts. In his first quarterly report since going public in February, the breakeven point was almost even. The stock rose more than 6% in extended trade.

The company behind popular dating apps Bumble and Badoo saw strong sales and subscriber growth sparked by a global pandemic that was driving data online.

The company reported for the fourth quarter, versus expectations of Wall Street analysts polled by Refinitiv:

Loss per share: 1 centRevenue: $ 165.6 million versus expected revenue of $ 163.3 million.

Wall Street was targeting a quarterly loss of 13 cents per share. CNBC does not compare reported earnings per share to expectations for a company’s first report as a publicly traded company because uncertain stock numbers can skew forecasts.

Sales increased by 31% compared to the previous year. The company’s Bumble app grossed $ 105.8 million and the Badoo app grossed $ 59.8 million during the reporting period.

Still, the company posted a net loss of $ 26.1 million after net income of $ 17.2 million for the same period last year.

Bumble reported 2.7 million paying users for both apps for the fourth quarter, up 32.5% from the fourth quarter of 2019. The company did not release updated numbers for the total number of app users, but previously reported 42.1 Millions of active monthly users by September 2020.

Bumble went public in February with an initial public offering of $ 2.2 billion and championed the online dating market with industry leader Match Group, which runs popular dating apps Tinder and Hinge.

Bumble operates its namesake app primarily in the US, UK, Australia, and Canada, and a similar offering, Badoo, operates primarily in Europe and Latin America.

Bumble’s unique pitch for its flagship app is simple: In straight games, only women can send a message first after mutual interest and men must respond within 24 hours. In gay games, either party can send a message first.

Dating apps have seen a surge in usage as Covid-19 bans held singles at home and online.

Tariq Shaukat, president of Bumble, said the company had seen evidence of pent-up demand on coronavirus lockdowns, but usage of the app varied by market.

“We’re seeing the engagement gains we’ve seen this year hold up quite well,” Shaukat said at the company’s investor conference.

Average total revenue per user for the fourth quarter was $ 20.02 compared to $ 19.99 for the fourth quarter of 2019.

For the first quarter of 2021, Bumble expects sales of $ 163 million to $ 165 million. For the full year of 2021, Bumble forecasts sales of $ 716 million to $ 726 million.

In addition to the dating service, the company also offers neighboring services, Bumble BFF and Bumble Bizz for platonic and professional connections.

CEO Whitney Wolfe Herd said the company doesn’t expect Bumble BFF to monetize until at least 2022, despite the company seeing its future in platonic relationships as an important opportunity for its first female user base.

– MacKenzie Sigalos and Sara Salinas from CNBC contributed to this report.

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Katherine Clark