Bumble shares pop despite earnings miss

Bumble shares are up despite missing on earnings for Q4.

Video Transcript

- But the earnings continue to roll in. Yahoo Finance's own Jared Blikre is also standing by with numbers from Bumble. Jared, how'd they do?

JARED BLIKRE: That's right. The stock is popping 14% in after-hours trading, as you can see there. So for their fourth-quarter results, it was actually a small miss on the top line. Revenue coming in at $208.2 million. It is up 26% year over year but short of the estimate of $209.6 million. Key stat here-- their paying users is 2.98 million.

Guess what? That's a little bit short of the estimate of 3 million as well, but it is up 10% from the prior year. Average revenue per paying user-- $22.83. That is shy of the estimate of $23.36. Adjusted EBITDA coming in at $54.8 million, up 24% year over year. It's just a slight beat over the estimate of 54.2%. And then adjusted EBITDA margin-- 26.3% versus the estimate of 25.8%, so a bit of a beat right there. And also looking at their loss per share-- that number came in at $0.08 versus a loss per share of $0.01 one year ago.

I've got one more stat here I want to bring-- operating loss of $4.59 million. That is down 78% year over year. Estimated profit-- that is what the Street expected, a profit of $0.56 million. So a little bit of a disappointment the numbers here, but not being reflected in the share price, as you can see on your screen there. It's been cut in half this year.

But if we put a max chart on, from its IPO date, it is down three quarters, 76%. And as one of our fellow Yahoo Finance producers said to me earlier, our editor, this is the saddest chart I've seen since Robinhood. Anyway, nice to see a little bit of a positive reaction here. But the numbers-- kind of just a little bit of a disappointment from what I'm seeing, guys.

- Yeah, Jared, it's really interesting. One of the areas of the business that we were discussing with an analyst who covers Bumble earlier in today's show was [? Baidu, ?] particularly the exposure that it has in Ukraine and amid the Russia and Ukraine conflict, [? Baidu ?] and their other revenue in that segment. That decreased 3.5% to $57.7 million. That's compared to the $59.8 million. So it's already starting to show up in some of their most recent quarter's results in spite of the conflict being very much present in the current quarter.

So they're already starting to see that show up in some of the figures. You mentioned the total average revenue per paying user, though, that $22.83 versus the $20.02 previously. That's some significant growth there. We'll see what more detail and granularity that the investors get around where that's coming in from, whether that's around finding a new best friend or whether that's around finding a new business contact on Bumble or finding-- just finding love on the platform. And so with all of those different lines of business that Bumble has, it'll be interesting to see how they break that out and if they offer some clarity and transparency on the call too.