What To Expect From Bumble’s (BMBL) Q1 Earnings

Jabin Bastian /
2023/05/03 3:32 am EDT
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Online dating app Bumble (NASDAQ:BMBL) will be reporting results tomorrow after market close. Here's what to expect.

Last quarter Bumble reported revenues of $241.6 million, up 16.7% year on year, beating analyst revenue expectations by 2.45%. It was a mixed quarter for the company, with growing number of users but an underwhelming revenue guidance for the next quarter. The company reported 3.41 million active buyers, up 14.4% year on year.

Is Bumble buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Bumble's revenue to grow 14.1% year on year to $240.9 million, slowing down from the 23.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Bumble Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing two upward and three downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Bumble's peers in the consumer subscription segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Netflix delivered top-line growth of 3.73% year on year, missing analyst estimates by 0.2% and Coursera reported revenues up 22.6% year on year, exceeding estimates by 6.39%. Netflix traded down 3.21% on the results, Coursera was up 18.7%. Read our full analysis of Netflix's results here and Coursera's results here.

The whole tech sector has been facing a sell-off since November 2021 and while some of the consumer subscription stocks have fared somewhat better, they have not been spared, with share price declining 6.67% over the last month. Bumble is down 7.45% during the same time, and is heading into the earnings with analyst price target of $25.7, compared to share price of $17.4.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.