Bumble Inc. Q3 FY2025 earnings call

Brand and Strategy

• Bumble's success is built on trusting women, creating a healthier member base. The focus is on quality over quantity, with product updates, AI investments, and marketing tied to improving the women's experience.

Product Updates

• Launched August update to Bumble Date focused on trust and safety, including richer profiles, verification features, and a coaching hub.

AI and Platform

• AI-first cloud-native platform expected in mid-2026 to personalize, enhance safety, and drive innovation. Stand-alone AI product in development, leveraging human connection and data.

Bumble BFF

• Expanding ecosystem with Bumble BFF, combining friend matching, group management, and event planning, performing well with increased retention.

Financial Discipline

• Focus on improving member experience, maintaining financial discipline, with Q3 results near high end of guidance range for revenue and adjusted EBITDA.

Total revenue for the third quarter was $246 million, a 10% decline from a year ago. Bumble App revenue was $199 million, also down 10% year-over-year. Badoo App and Other revenue declined 11% to $47 million. Adjusted EBITDA for the quarter was $83 million, up 1%, representing a margin of 34%, up from 30% in the year ago period.

Q4 Outlook

• Expected total revenue $216M-$224M (down 17%-14% YOY), Bumble App revenue $176M-$182M (down 17%-14% YOY). Adjusted EBITDA $61M-$65M (margin 28%-29%).

Future Trends

• Anticipate improved retention and ARPPU as quality-first initiatives progress, with Q4 reflecting full impact of August initiatives. Plan to refine direct billing offerings in Q4.

• Near-term attrition of targeted member segments due to quality-first initiatives.
• Paused performance marketing led to reduced registrations, active members, and payers, though targeted marketing showing encouraging results.
• Termination of tax receivable agreement reduces liabilities but impacts cash flow and strategic flexibility.

Q: Vision for Bumble in 2-3 years and revenue growth timing A: Whitney Herd emphasized solving women's pain points with AI, modern tech stack enabling quick product changes. Kevin Cook noted Q3 payer decline from trust/safety work and marketing reduction, seeing early signs of retention improvement.

Q: Improved members and ARPPU A: Whitney Herd explained improved members can become approved with simple tweaks like better profiles, leading to higher engagement and monetization. Kevin Cook mentioned direct billing initiatives and cost of revenue improvements.

Q: Stand-alone AI product and overlap with core Bumble A: Whitney Herd discussed unique AI product with precise search, overlapping with core products via tech stack improvements, enabling faster feature development and integration of learnings.