Shares of Bumble rose on Thursday as the company’s fourth quarter sales accelerated to 31% growth from 24% in the third quarter. Yahoo Finance’s Brian Sozzi shares the details.
JULIE HYMAN Well, people are getting back out there. And when I say back out there, I mean on the dating apps, at least, if Bumble’s results are any indication. Sozzi likes that one. The shares are trading higher today, and you’ve been digging into those numbers, Sozz.
BRIAN SOZZI: Let’s just be clear. For us three, we’re not getting out there. We’re all spoken for. I just want to get that out of the way. But yeah, so here’s some quick analysis on Bumble. Shares are up about 10% here in the early going, and I would say deservedly so. The company came out, first earnings report as a public company, big glitzy IPO over at the NASDAQ in early February.
And I would say Bumble, for the most part, delivered here. First and foremost, they came out, the Bumble app, 47% revenue growth. That beat Tinder’s growth in the most recent quarter of 13%. These companies are going to be compared even more now that they are both public. Of course, Tinder is owned by Match. So Bumble checked the box there. Strong outlook, pretty strong, too, at the high end, looking for 25% revenue growth this year.
If there is a knock, their operating profit margin guidance about 25%. That would be down from 26% last year. A lot of investments by Bumble is making– Bumble is making in its app. And then last but not least, revenue growth accelerated seven points in the fourth quarter versus the third quarter.
Put all that together, and I think that’s why you’re seeing the Street pretty happy with this report on a company that they can really understand. This is not GE here. This is Bumble. They are dating, and they’re getting prepared for a potentially strong rebound in their business later this year.
MYLES UDLAND: Well, we’ll know there’s a problem when Bumble Capital, I guess, gets started up inside of that 100-year wind-down of business. I just want to note, I saw one of those– I saw a Bumble bench in my neighborhood yesterday when I was walking around.
It’s like a yellow– I don’t know if you guys have seen this. It’s like a yellow plastic bench. It looks like the Bumble logo. There’s two seats six feet apart, and I guess that’s where you’re supposed to sit, and you can conduct a Bumble date. So if you’re on the Upper East Side, 83rd and 2nd I think were the coordinates on that. You can go there and hang out.
JULIE HYMAN Interesting. I wonder how many–
BRIAN SOZZI: I’m not going.
JULIE HYMAN –people actually meet up in real life, are doing that, that distance. I don’t know. All right, heartbreaker Brian Sozzi, thank you so much for giving us the update on Bum–