Bumble Inc. Q3 FY2024 earnings call

• Transformation initiatives: Leaner team, attracted top talent, data-driven decisions, increased execution velocity in engineering and product dev.
• Marketing: Rebalanced spend to focus on organic strategies in top cities, optimized growth marketing to higher quality channels; early tests in Europe showed high single-digit incremental women's registrations and increased yes votes.
• Safety/support: Improved routing models for safety issues (handling time <1 min), double-digit precision increase in photo moderation, piloting generative AI customer service agent.
• Product: Fall release with matching algorithm improvements, new interest filters, expanded opening moves; winter release planned with ID verification, trusted contacts sharing, AI-powered photo selection; Geneva live for friendships/community.

Total Bumble Inc. revenue was $274 million in Q3, down 1% YoY. Bumble app revenue was $220 million, down 1% YoY, with Bumble app paying users growing 10% to $2.9 million. Badoo app and other revenue was $53 million, 1% lower YoY, with Badoo and other paying users growing 14% to $1.4 million. Adjusted EBITDA for Q3 exceeded outlook, with adjusted EBITDA for Bumble up 10% to $83 million (30% margin).

• Full year 2024: Total revenue $1.066B - $1.072B (1.6% midpoint growth), Bumble-app revenue $861M - $865M (2% midpoint growth); adjusted EBITDA margin to expand at least 200bps.
• Q4 2024: Total revenue $256M - $262M, Bumble-app revenue $207M - $211M, adjusted EBITDA $70M - $73M; Bumble-app pair net ads expected to decline $70,000 - $80,000.

• Forward-looking statements subject to various risks/uncertainties. - Execution risks related to multi-quarter transformation and revenue growth realization. - Market/competitive risks affecting user acquisition/retention.

Q: Understanding progress and 2025 guidance, how to think about product contributions?

A: Lidiane Jones discussed focus on ecosystem, customer success, revenue strategy, optimistic on progress.

Q: Follow-up on buybacks, philosophically how thinking about capital allocation?

A: Anu Subramanian talked about capital allocation in organic growth, M&A, and returning capital to shareholders, balanced approach.

Q: Ecosystem health examples, specific actions?

A: Lidiane Jones mentioned marketing rebalance, product innovation for retaining customers.

Q: Badoo learnings, key priorities?

A: Lidiane Jones spoke about customer-centric approach to Badoo, positive engagement and ARPPU benefits.

Q: Gen Z engagement, election impact?

A: Lidiane Jones and Anu Subramanian addressed Gen Z positive engagement from marketing rebalance, no significant election impact on Q4 guidance.

Q: Free experience evolution, product rhythm?

A: Lidiane Jones and Anu Subramanian discussed free experience optimization for conversion, product innovation cadence.

Q: Marketing tests in Europe, expansion plans?

A: Lidiane Jones talked about tailored marketing strategies based on market presence for Europe and mature markets.

Q: Q4 margin outlook, reasons?

A: Anuradha Subramanian explained spend shift from Q3 to Q4 to align with product release, causing Q4 margin lower but full year outlook maintained.