What happened
Shares of Bumble (BMBL 0.60%) surged on Thursday after the digital dating platform reported impressive first-quarter results. As of 3:35 p.m. ET, the stock price was up by 25%.
So what
Revenue rose 24% year over year to $211 million, fueled by a 38% surge in Bumble App revenue to $155 million. That was partially offset by a 4% decline in sales from the company's Badoo app and other products, to $55.8 million.
People are flocking to Bumble's namesake app. Paying users jumped by 31% to 1.8 million. Those people are also spending more on in-app purchases. That helped increase the app's average revenue per paying user (ARPPU) by 5% to $29.18.
Image source: Getty Images.
"Bumble App drove substantial revenue growth across the U.S. and international markets and delivered a significant sequential increase in paying users by continuing to focus on a woman-first experience built upon trust, kindness, and safety," said founder and CEO Wolfe Herd in a press release.
All told, the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 8% to $49.8 million. Bumble also generated positive free cash flow of $14.4 million, compared to negative $48.3 million in the year-ago quarter.
Now what
Management reiterated its forecast for 2022 revenue in the range of $934 million to $944 million, though it cautioned that the final result could come in at the low end of that range due to recent fluctuations in foreign exchange rates. Still, that would amount to year-over-year growth of at least 22%.
"Our compelling brands, product leadership, and operational excellence position us well to capture a growing share of the global dating market," Wolfe said.
