Bumble Q2 revenue beats expectations

Yahoo Finance's Emily McCormick joined Yahoo Finance Live to break down Bumble's latest earnings.

Video Transcript

ADAM SHAPIRO: Emily McCormick's watching Bumble for us. Shares are trading higher after hours right now. Tell us about the report. And I guess people want to date.

EMILY MCCORMICK: That's right, Adam. We did see Bumble beating consensus estimates on both the top and bottom line for the second quarter. Specifically, we saw revenue coming in at $186.2 million, better than the 178.7 million that Wall Street was expecting. And that revenue growth rate is good for a 38% increase and an acceleration from the first quarter growth rates.

Now, in terms of paid users, of course, that is always closely watched on this dating app. Those growing 20% and coming in at 2.93 million in the quarter. And most optimistically here for the Street, the company also delivered a better than expected third quarter revenue forecast as well as raised its full-year revenue guidance.

Now, for the third quarter, Bumble does see revenue coming in at as much as 198 million. The Street looking for 191 million. And then for the full year, the company does see revenue up as much as $762 million. And that is an increase from as much as $734 million that it saw previously.

Now, of course, the Street was expecting to see Bumble's revenue pick up, especially now that people have been getting vaccinated, have been going back out on dates, as well as using the app to make new friends. So as we can see, a lot more user engagement, better monetization by Bumble, and all of this translating to better than expected second quarter results. And we are seeing that stock moving up on the heels of this, guys.