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'Expectations reset': Bumble tumbles on weak earnings and guidance

Stock Markets Nov 10, 2022 08:22
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By Senad Karaahmetovic

Shares of Bumble (NASDAQ:BMBL) are down more than 14% in pre-open trading after the company reported weaker-than-expected results and issued a soft outlook for the ongoing quarter.

Bumble reported a Q3 EPS of $0.14 to easily top the analyst estimate of $0.01. However. Revenue increased “only” 16% year-over-year to $232.6 million, missing the consensus estimate of $238.27M.

Bumble reported 3.29M paying users and $22.96 in average revenue per paying user, lower than the $24.31 estimate.

For this quarter, Bumble sees revenue between $232M and $237M, below the consensus of $254.46M. The adjusted Ebitda is seen at $58M (up or down $1M), again below the $64.6M average analyst estimate.

Raymond James analysts said Bumble delivered an “expectations reset” for 2023, although their long-term view on Bumble stock remains positive. The analysts cut the price target by $13 per share to $24.

“This quarter was disappointing, but we believe this expectations reset goes a long way toward clearing the deck; our view on the long-term opportunity for Bumble remains unchanged. We maintain our Outperform rating,” they said in a note.

KeyBanc analysts said the results showed “many of the issues afflicting Match, such as FX headwinds and product delays.”

“While the initial 2023 outlook is lower than expected, Bumble appears to have levers to maintain 100 bps of margin expansion,” the analysts added.

'Expectations reset': Bumble tumbles on weak earnings and guidance
 

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