Bumble Inc. Announces Fourth Quarter and Full Year 2022 Results

Rhea-AI Summary

Bumble Inc. (NASDAQ: BMBL) announced its fourth quarter and full year 2022 financial results, reporting a total revenue of $903.5 million, up 19% year-over-year. The fourth quarter saw a 16.7% revenue increase to $241.6 million, despite a $12.7 million adverse impact from foreign currency. Bumble App revenue surged 27.7% to $190.8 million with paying users increasing 35% to 2.2 million. However, net loss widened to $159.2 million, compared to a loss of $13.9 million in Q4 2021. The company anticipates Q1 2023 revenue between $238 million and $243 million amid ongoing foreign currency challenges.

Positive

• Total revenue for 2022 increased by 19% to $903.5 million.
• Fourth quarter Bumble App revenue rose by 27.7% to $190.8 million.
• Bumble App paying users grew by 35% to 2.2 million, adding 133,000 users quarter over quarter.
• Adjusted EBITDA for 2022 was $226.9 million, or 25.1% of revenue.

Negative

• Net loss widened to $159.2 million, or (65.9)% of revenue, from $13.9 million in Q4 2021.
• Badoo App and Other revenue declined by 11.9% to $50.8 million in Q4 2022.

Total Revenue in 2022 Increased 19% to $903.5 million

Fourth Quarter Bumble App Revenue Increased 28% to $190.8 million

Fourth Quarter Bumble App Paying Users Increased 35% to 2.2 million; Grew 133,000 Quarter Over Quarter

AUSTIN, Texas--(BUSINESS WIRE)-- Bumble Inc. (NASDAQ: BMBL), the parent company of Bumble, Badoo, and Fruitz, today reported financial results for the fourth quarter and full year ended December 31, 2022.

“We achieved strong results in 2022 by advancing our powerful products, technology and mission to create kind connections,” said Whitney Wolfe Herd, Founder and CEO of Bumble Inc. “By delivering unique and engaging product experiences built upon a foundation of trust and safety, our team is realizing the tremendous potential of our brands. The momentum of our business continues to strengthen our confidence in our long term opportunity.“

Fourth Quarter 2022 Financial and Operational Highlights:

(All comparisons relative to the Fourth Quarter 2021)

• Total Revenue increased 16.7% to $241.6 million, compared to $207.0 million. This includes an unfavorable impact of $12.7 million from foreign currency movements year over year.
  • Bumble App revenue grew 27.7% to $190.8 million, compared to $149.4 million. This includes an unfavorable impact of $7.1 million from foreign currency movements year over year.
  • Badoo App and Other revenue declined (11.9)% to $50.8 million, compared to $57.6 million. This includes an unfavorable impact of $5.6 million from foreign currency movements year over year.
• Total Paying Users increased 14.4% to 3.4 million, compared to 3.0 million.
• Total Average Revenue per Paying User ("ARPPU") increased to $23.01, compared to $22.69.
• Net loss was $159.2 million or (65.9)% of revenue, compared to net loss of $13.9 million, or (6.7)% of revenue.
• Adjusted EBITDA was $60.5 million, or 25.0% of revenue, compared to $54.8 million, or 26.4% of revenue.

Full Year 2022 Operational and Financial Highlights:

(All comparisons relative to the Full Year 2021)

• Revenue increased 18.7% to $903.5 million, compared to $760.9 million. This includes an unfavorable impact of $41.1 million from foreign currency movements year over year.
  • Bumble App revenue grew 31.4% to $694.3 million, compared to $528.6 million. This includes an unfavorable impact of $20.9 million from foreign currency movements year over year.
  • Badoo App and Other revenue declined (10.0)% to $209.2 million, compared to $232.3 million. This includes an unfavorable impact of $20.2 million from foreign currency movements year over year.
• Total Paying Users increased 10.0% to 3.2 million, compared to 2.9 million.
• Total ARPPU was $23.03, compared to $21.55.
• Net loss was $(114.1) million, or (12.6)% of revenue, compared to net earnings of $281.7 million, or 37.0% of revenue.
• Adjusted EBITDA was $226.9 million, or 25.1% of revenue, compared to $207.2 million, or 27.2% of revenue.

“We delivered total revenue growth of 19% and an adjusted EBITDA margin of 25% in 2022,” said Anu Subramanian, Chief Financial Officer of Bumble Inc. “The resilience of our business is underscored by Bumble App’s half a million paying user net additions and healthy 31% revenue increase for the full year. By meaningfully expanding our offerings and extending our reach across the globe, we believe we are on a path to scale our business and deliver profitable growth again in 2023.”

Key Operating Metrics:

The following metrics were calculated excluding paying users and revenue generated from Fruitz. Please refer to the Definitions section for more information.

(in thousands, except ARPPU)		Quarter Ended December 31, 2022			Quarter Ended December 31, 2021			Year Ended December 31, 2022			Year Ended December 31, 2021
Bumble App Paying Users			2,221.1			1,640.7			2,002.2			1,499.8
Badoo App and Other Paying Users			1,188.2			1,338.2			1,179.7			1,394.1
Total Paying Users			3,409.3			2,978.9			3,181.9			2,893.9
Bumble App Average Revenue per Paying User		$	28.64		$	30.36		$	28.90		$	29.37
Badoo App and Other Average Revenue per Paying User		$	12.48		$	13.30		$	13.06		$	13.13
Total Average Revenue per Paying User		$	23.01		$	22.69		$	23.03		$	21.55

Balance Sheet:

As of December 31, 2022, total cash and cash equivalents were $402.6 million and total debt was $625.0 million.

Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”

Financial results will not be final until Bumble files its Annual Report on Form 10-K for the period.

Financial Outlook:

A reconciliation of Adjusted EBITDA to GAAP net earnings (loss) and Adjusted EBITDA margin growth to GAAP net earnings (loss) margin growth which is growth in GAAP net earnings (loss) as a percentage of revenue has not been provided for the outlook included herein as the quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-GAAP adjustment for certain legal, tax and regulatory reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.

Bumble anticipates total revenue, adjusted EBITDA and adjusted EBITDA margin for the quarter ending March 31, 2023 and year ending December 31, 2023 to be:

First quarter 2023

• Total revenue in the range of $238 to $243 million.
• Bumble App revenue of $190 to $193 million.
• Adjusted EBITDA in the range of $53 to $56 million.

The revenue outlook for first quarter 2023 is based on the following considerations:

• An unfavorable impact of approximately $10 million of revenue from foreign currency movements as well as from the Ukraine conflict, due to the company's subsequent decision to remove all of its apps from the Apple App Store and Google Play Store in Russia and Belarus. This will predominantly impact Badoo App and Other revenue.

Full year 2023

• Total revenue year over year growth in the range of 16% to 19%.
• Bumble App year over year revenue growth in the range of 22% to 25%.
• Adjusted EBITDA margin growth of approximately 100 basis points.

Actual results may differ materially from Bumble’s financial outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Revision of Previously Issued Financial Statements:

Certain prior period amounts included in this press release have been revised. As reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 (the “Q3 10-Q”), the Company identified certain prior period adjustments, including with respect to the recognition and presentation of debt issuance costs and refunds from third-party aggregators, for the 2020 annual financial statements, 2021 quarterly and annual financial statements and quarterly financial statements for the three months ended June 30, 2022 and March 31, 2022. These revisions were not material to the prior periods and do not affect the ongoing operations of the Company or adjusted EBITDA. A quantification of the impact of these adjustments on each financial statement line item was included in the Q3 10-Q.

Conference Call and Webcast Information

Bumble will host a live webcast of its conference call to discuss its fourth quarter and full year 2022 financial results at 4:30 p.m. Eastern Time today, February 22, 2023. A webcast of the call and other information related to the call will be accessible on the Investors section of the Company’s website at https://ir.bumble.com. A webcast replay will be available approximately two hours after the conclusion of the live event.

Definitions

Total Revenue is the sum of Bumble App Revenue and Badoo App and Other Revenue.

Total Paying Users is the sum of Bumble App Paying Users and Badoo App and Other Paying Users.

Total Average Revenue per Paying User is a metric calculated based on Total Revenue in any measurement period, excluding any revenue generated from Fruitz, advertising and partnerships or affiliates, divided by the Total Paying Users in such period divided by the number of months in the period.

Bumble App Revenue is revenue derived from purchases or renewals of a Bumble app subscription plan and/or in-app purchases on Bumble app in the relevant period.

Bumble App Paying User is a user that has purchased or renewed a Bumble app subscription plan and/or made an in-app purchase on Bumble app in a given month. We calculate Bumble App Paying Users as a monthly average, by counting the number of Bumble App Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Bumble App Average Revenue per Paying User is a metric calculated based on Bumble App Revenue in any measurement period, divided by Bumble App Paying Users in such period divided by the number of months in the period.

Badoo App and Other revenue is revenue derived from purchases or renewals of a Badoo app subscription plan and/or in-app purchases on Badoo app in the relevant period, purchases on one of our other apps that we owned and operated in the relevant period, purchases on other third party apps that used our technology in the relevant period and advertising, partnerships or affiliates revenue in the relevant period.

Badoo App and Other Paying User is a user that has purchased or renewed a subscription plan and/or made an in-app purchase on Badoo app in a given month (excluding Fruitz) or made a purchase on one of our other apps that we owned and operated in a given month, or purchase on other third-party apps that used our technology in the relevant period). We calculate Badoo App and Other Paying Users as a monthly average, by counting the number of Badoo App and Other Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Badoo App and Other Average Revenue per Paying User is a metric calculated based on Badoo App and Other Revenue in any measurement period, excluding any revenue generated from Fruitz, advertising and partnerships or affiliates, divided by Badoo App and Other Paying Users in such period divided by the number of months in the period.

Non-GAAP Financial Measures

We report our financial results in accordance with GAAP, however, management believes that certain non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. These measures include: adjusted EBITDA, adjusted EBITDA margin, free cash flow and free cash flow conversion. We believe adjusted EBITDA and adjusted EBITDA margin provide visibility to the underlying continuing operating performance by excluding the impact of certain expenses, including income tax (benefit) provision, interest (income) expense, depreciation and amortization, stock-based compensation expense, employer costs related to stock-based compensation, foreign exchange (gain) loss, changes in fair value of contingent earn-out liability, interest rate swaps and investments in equity securities, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business, tax receivable agreement liability remeasurement (benefit) expense and impairment loss, as management does not believe these expenses are representative of our core earnings. In addition to adjusted EBITDA and adjusted EBITDA margin, we believe free cash flow and free cash flow conversion provide useful information regarding how cash provided by operating activities compares to the capital expenditures required to maintain and grow our business, and our available liquidity, after funding such capital expenditures, to service our debt, fund strategic initiatives and strengthen our balance sheet, as well as our ability to convert our earnings to cash. Additionally, we believe such metrics are widely used by investors, securities analysis, ratings agencies and other parties in evaluating liquidity and debt-service capabilities. We calculate free cash flow and free cash flow conversion using methodologies that we believe can provide useful supplemental information to help investors better understand underlying trends in our business.

Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) is defined as net earnings (loss) excluding income tax (benefit) provision, interest (income) expense, depreciation and amortization, stock-based compensation expense, employer costs related to stock-based compensation, foreign exchange (gain) loss, changes in fair value of contingent earn-out liability, interest rate swaps and investments in equity securities, transaction and other costs, litigation costs net of insurance reimbursements that arise outside of the ordinary course of business, tax receivable agreement liability remeasurement (benefit) expense and impairment loss.

Adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures.

Free cash flow conversion represents free cash flow as a percentage of adjusted EBITDA.

Operating cash flow conversion represents net cash provided by (used in) operating activities as a percentage of net earnings (loss).

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements reflecting our current views with respect to, among other things, our operations, our financial performance and our industry and other non-historical statements, including without limitation the statements in the “Financial Outlook” section of this press release. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believe(s),” “expect(s),” “potential,” “continue(s),” “may,” “will,” “should,” “could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,” “plan(s),” “estimate(s),” “anticipates,” “projection,” “will likely result” and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include, but are not limited to, the following:

• our ability to retain existing users or attract new users and to convert users to paying users
• competition and changes in the competitive landscape of our market
• our ability to distribute our dating products through third parties, such as Apple App Store or Google Play Store, and offset related fees
• the impact of data security breaches or cyber attacks on our systems and the costs of remediation related to any such incidents
• the continued development and upgrading of our technology platform and our ability to adapt to rapid technological developments and changes in a timely and cost-effective manner
• our ability to obtain, maintain, protect and enforce intellectual property rights and successfully defend against claims of infringement, misappropriation or other violations of third-party intellectual property
• our ability to comply with complex and evolving U.S. and international laws and regulations relating to our business, including sanctions and data privacy laws
• foreign currency exchange rate fluctuations
• risks relating to certain of our international operations, including geopolitical conditions and successful expansion into new markets
• the impact of current developments in Russia, Ukraine and surrounding countries on our business and users, including the impact of our decision to discontinue our operations in Russia and remove our apps from the Apple App Store and Google Play Store in Russia and Belarus
• affiliates of Blackstone Inc.’s (“Blackstone”) and our Founder’s control of us
• the outsized voting rights of affiliates of Blackstone and our Founder
• the inability to attract hire and retain a highly qualified and diverse workforce, or maintain our corporate culture
• changes in business or macroeconomic conditions, including lower consumer confidence in our business or in the online dating industry generally, recessionary conditions, increased unemployment rates, stagnant or declining wages, changes in inflation or interest rates, political unrest, armed conflicts, natural disasters or the impact of the Coronavirus Disease 2019 (and other widespread health emergencies or pandemics) and measures taken in response

For additional information on these and other factors that could cause Bumble’s actual results to differ materially from expected results, please see our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2021 and our subsequent periodic filings, which are accessible on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Bumble

Bumble Inc. is the parent company of Bumble, Badoo, and Fruitz. The Bumble platform enables people to connect and build equitable and healthy relationships. Founded by CEO Whitney Wolfe Herd in 2014, Bumble was one of the first dating apps built with women at the center and connects people across dating (Bumble Date), friendship (Bumble BFF) and professional networking (Bumble Bizz). Badoo, which was founded in 2006, is one of the pioneers of web and mobile dating products. Fruitz, founded in 2017, encourages open and honest communication of dating intentions through playful fruit metaphors. For more information about Bumble, please visit www.bumble.com and follow @Bumble on social platforms.

Investor Contact
ir@team.bumble.com

Media Contact
press@team.bumble.com

Bumble Inc. Consolidated Balance Sheets (in thousands, except share and per share information)
		December 31, 2022				December 31, 2021
ASSETS
Cash and cash equivalents		$	402,559			$	369,175
Accounts receivable, net			66,930				47,538
Other current assets			31,882				52,751
Total current assets			501,371				469,464
Right-of-use assets			17,419				26,410
Property and equipment, net			14,467				14,627
Goodwill			1,579,770				1,540,112
Intangible assets, net			1,524,428				1,696,798
Deferred tax assets, net			24,050				19,572
Other noncurrent assets			31,116				10,013
Total assets		$	3,692,621			$	3,776,996
LIABILITIES AND BUMBLE INC. SHAREHOLDERS' EQUITY
Accounts payable		$	3,367			$	19,169
Deferred revenue			46,108				39,569
Accrued expenses and other current liabilities			156,443				111,482
Current portion of long-term debt, net			5,750				5,750
Total current liabilities			211,668				175,970
Long-term debt, net			619,223				623,231
Deferred tax liabilities, net			8,077				—
Payable to related parties pursuant to a tax receivable agreement			385,486				388,780
Other liabilities			14,588				119,246
Total liabilities		$	1,239,042			$	1,307,227
Commitments and contingencies
Bumble Inc. Shareholders’ Equity:
Class A common stock (par value $0.01 per share, 6,000,000,000 shares authorized; 129,774,299 and 129,212,949 shares issued and outstanding as of December 31, 2022 and 2021, respectively)			1,298				1,292
Class B common stock (par value $0.01 per share, 1,000,000 shares authorized; 20 shares issued and outstanding as of December 31, 2022 and 2021, respectively)			—				—
Preferred stock (par value $0.01; 600,000,000 shares authorized; no shares issued and outstanding as of December 31, 2022 and 2021, respectively)			—				—
Additional paid-in capital			1,691,911				1,588,426
Accumulated deficit			(139,871	)			(60,125	)
Accumulated other comprehensive income			74,477				78,603
Total Bumble Inc. shareholders’ equity			1,627,815				1,608,196
Noncontrolling interests			825,764				861,573
Total shareholders’ equity			2,453,579				2,469,769
Total liabilities and shareholders’ equity		$	3,692,621			$	3,776,996

Bumble Inc. Consolidated Statements of Operations (in thousands, except per share / unit data)
		Quarter Ended December 31, 2022				Quarter Ended December 31, 2021				Year Ended December 31, 2022				Year Ended December 31, 2021
Revenue		$	241,628			$	207,044			$	903,503			$	760,910
Operating costs and expenses:
Cost of revenue			67,788				53,573				249,490				205,171
Selling and marketing expense			68,641				60,057				249,269				211,711
General and administrative expense			211,664				50,107				319,300				265,738
Product development expense			25,096				21,720				98,575				105,917
Depreciation and amortization expense			15,878				26,174				89,713				107,056
Total operating costs and expenses			389,067				211,631				1,006,347				895,593
Operating earnings (loss)			(147,439	)			(4,587	)			(102,844	)			(134,683	)
Interest income (expense)			(5,617	)			(5,713	)			(24,063	)			(24,574	)
Other income (expense), net			(8,540	)			(4,329	)			16,189				3,160
Income (loss) before income tax			(161,596	)			(14,629	)			(110,718	)			(156,097	)
Income tax benefit (provision)			2,350				716				(3,406	)			437,837
Net earnings (loss)			(159,246	)			(13,913	)			(114,124	)			281,740
Net earnings (loss) attributable to noncontrolling interests			(48,676	)			(1,472	)			(34,378	)			(28,075	)
Net earnings (loss) attributable to Bumble Inc. shareholders / Buzz Holdings L.P. owners / Worldwide Vision Limited shareholders		$	(110,570	)		$	(12,441	)		$	(79,746	)		$	309,815
Net earnings (loss) per share / unit attributable to Bumble Inc. shareholders / Buzz Holdings L.P. owners
Basic earnings (loss) per share / unit		$	(0.85	)		$	(0.07	)		$	(0.62	)		$	1.50
Diluted earnings (loss) per share / unit		$	(0.85	)		$	(0.07	)		$	(0.62	)		$	1.45

Bumble Inc. Consolidated Statements of Cash Flows (in thousands)
		Quarter Ended December 31, 2022				Quarter Ended December 31, 2021				Year Ended December 31, 2022				Year Ended December 31, 2021
Cash flows from operating activities:
Net earnings (loss)		$	(159,246	)		$	(13,913	)		$	(114,124	)		$	281,740
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization			15,878				26,174				89,713				107,056
Impairment loss			141,000				26,431				145,388				26,431
Gain on settlement of lease liabilities			(2,140	)			—				(2,140	)			—
Loss on extinguishment of long term debt			—				—				—				3,398
Change in fair value of interest rate swap			1,318				(3,804	)			(17,086	)			(6,593	)
Change in fair value of contingent earn-out liability			(735	)			(21,759	)			(47,134	)			55,900
Tax receivable agreement liability remeasurement expense			5,332				2,799				5,332				1,112
Non-cash lease expense			1,060				1,191				4,539				5,438
Deferred income tax			1,047				(5,300	)			(5,454	)			(448,395	)
Stock-based compensation expense			33,829				24,408				111,008				123,910
Net foreign exchange difference			16,984				10,949				2,571				8,692
Research and development tax credit			(1,191	)			(1,322	)			(1,191	)			(1,322	)
Other, net			(2,375	)			(1,468	)			(3,553	)			3,946
Changes in assets and liabilities:
Accounts receivable			(15,547	)			(4,999	)			(20,723	)			(9,953	)
Other current assets			2,703				29,612				22,964				24,328
Accounts payable			(4,156	)			9,593				(13,997	)			(3,531	)
Deferred revenue			1,210				881				5,889				8,654
Legal liabilities			19,125				(746	)			11,995				(46,377	)
Lease liabilities			(2,747	)			(1,114	)			(5,984	)			(5,464	)
Accrued expenses and other current liabilities			(111	)			6,290				(34,991	)			(25,081	)
Other, net			(66	)			677				(81	)			948
Net cash provided by (used in) operating activities			51,172				84,580				132,941				104,837
Cash flows from investing activities:
Capital expenditures			(5,022	)			(4,265	)			(16,333	)			(13,653	)
Acquisition of business, net of cash acquired			—				—				(69,720	)			—
Other, net			—				1,138				—				1,169
Net cash used in investing activities			(5,022	)			(3,127	)			(86,053	)			(12,484	)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock sold in initial public offering, net of offering costs			—				—				—				2,358,371
Payments to purchase and retire common stock			—				—				—				(1,018,365	)
Purchase of Common Units from Pre-IPO Common Unitholders in the initial public offering			—				—				—				(973,289	)
Proceeds from exercise of options			—				—				—				545
Repayment of term loan			(1,437	)			(1,438	)			(5,750	)			(206,438	)
Withholding tax paid on behalf of employees on stock based awards			(1,852	)			—				(9,204	)			(9,338	)
Net cash (used in) provided by financing activities			(3,289	)			(1,438	)			(14,954	)			151,486
Effects of exchange rate changes on cash and cash equivalents			(7,708	)			(2,415	)			5,933				(2,950	)
Net (decrease) increase in cash and cash equivalents and restricted cash			35,153				77,600				37,867				240,889
Cash and cash equivalents and restricted cash, beginning of the period			371,889				291,575				369,175				128,286
Cash and cash equivalents and restricted cash, end of the period		$	407,042			$	369,175			$	407,042			$	369,175
Less restricted cash			(4,483	)			—				(4,483	)			—
Cash and cash equivalents, end of the period		$	402,559			$	369,175			$	402,559			$	369,175

Bumble Inc. Reconciliation of GAAP to NON-GAAP Financial Measures
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA and Reconciliation of Net Cash Provided By (Used in) Operating Activities to Free Cash Flow
(in thousands, except percentages)		Quarter Ended December 31, 2022				Quarter Ended December 31, 2021				Year Ended December 31, 2022				Year Ended December 31, 2021
Net earnings (loss)		$	(159,246	)		$	(13,913	)		$	(114,124	)		$	281,740
Add back:
Income tax (benefit) provision			(2,350	)			(716	)			3,406				(437,837	)
Interest (income) expense			5,617				5,713				24,063				24,574
Depreciation and amortization			15,878				26,174				89,713				107,056
Stock-based compensation expense			33,829				24,408				111,008				123,910
Employer costs related to stock-based compensation(1)			426				—				2,054				2,438
Litigation costs, net of insurance reimbursements(2)			18,645				3,149				22,734				6,943
Foreign exchange (gain) loss (3)			2,371				6,174				(3,679	)			132
Changes in fair value of interest rate swaps(4)			1,318				(3,804	)			(17,086	)			(6,593	)
Transaction and other costs(5)			(1,643	)			861				5,226				22,491
Changes in fair value of contingent earn-out liability			(735	)			(21,759	)			(47,134	)			55,900
Changes in fair value of investments			56				(767	)			18				(1,100	)
Tax receivable agreement liability remeasurement expense(6)			5,332				2,799				5,332				1,112
Impairment loss(7)			141,000				26,431				145,388				26,431
Adjusted EBITDA		$	60,498			$	54,750			$	226,919			$	207,197
Net earnings (loss) margin(8)			(65.9	)%			(6.7	)%			(12.6	)%			37.0	%
Adjusted EBITDA Margin			25.0	%			26.4	%			25.1	%			27.2	%
Net cash provided by (used in) operating activities		$	51,172			$	84,580			$	132,941			$	104,837
Less:
Capital expenditures			(5,022	)			(4,265	)			(16,333	)			(13,653	)
Free Cash Flow		$	46,150			$	80,315			$	116,608			$	91,184
Operating Cash Flow Conversion			(32.1	)%			(607.9	)%			(116.5	)%			37.2	%
Free Cash Flow Conversion			76.3	%			146.7	%			51.4	%			44.0	%

(1)		Represents employer portion of Social Security and Medicare payroll taxes domestically, National Insurance contributions in the United Kingdom and comparable costs internationally related to the settlement of equity awards.
(2)		Represents certain litigation costs and insurance proceeds associated with pending litigations or settlements of litigation. Includes amounts accrued with respect to the Company’s class action lawsuit related to the September 2021 secondary public stock offering, representing management’s current estimated probable loss for this matter.
(3)		Represents foreign exchange (gain) loss due to foreign currency transactions.
(4)		Represents fair value loss (gain) on interest rate swaps.
(5)		Represents transaction costs related to acquisitions and our offerings (IPO, the Reorganization and the secondary offering) such as legal, accounting, advisory fees and other related costs. Amount for 2021 also includes a loss on debt extinguishment related to the repayment of $200.0 million under the Incremental Term Loan Facility. Amount for 2022 also include employee-related restructuring costs directly associated with our decision to discontinue our operations in Russia including severance benefits, relocation costs and advisory fees.
(6)		Represents changes in tax receivable agreement liability due to tax rate changes and unrelated to exchanges of Common Units for Class A shares.
(7)		Represents impairment loss incurred on white label contracts in 2021 and impairment loss of the Badoo brand and a right-of-use asset related to our Moscow office in 2022.
(8)		Net earnings margin for the year ended December 31, 2021 includes a $441.5 million tax benefit related to the reversal of a deferred tax liability due to a restructuring of the Company’s international operations.

Supplementary Information Stock-Based Compensation Expense
(in thousands)		Quarter Ended December 31, 2022			Quarter Ended December 31, 2021			Year Ended December 31, 2022			Year Ended December 31, 2021
Cost of revenue		$	1,093		$	730		$	3,819		$	3,749
Selling and marketing expense			3,517			2,739			8,064			12,925
General and administrative expense			20,331			13,129			65,957			62,284
Product development expense			8,888			7,810			33,168			44,952
Total stock-based compensation expense		$	33,829		$	24,408		$	111,008		$	123,910

Reconciliation of GAAP costs and expenses to non-GAAP costs and expenses by function
(In thousands)		Three Months Ended December 31, 2022				Three Months Ended December 31, 2021				Twelve Months Ended December 31, 2022				Twelve Months Ended December 31, 2021
Cost of revenue GAAP		$	67,788			$	53,573			$	249,490			$	205,171
Stock-based compensation expense			(1,093	)			(730	)			(3,819	)			(3,749	)
Payroll tax expense related to stock-based compensation			(17	)			—				(101	)			(117	)
Transaction and other costs			6				—				(119	)			—
Cost of revenue non-GAAP		$	66,684			$	52,843			$	245,451			$	201,305

(In thousands)		Three Months Ended December 31, 2022				Three Months Ended December 31, 2021				Twelve Months Ended December 31, 2022				Twelve Months Ended December 31, 2021
Selling and marketing expense GAAP		$	68,641			$	60,057			$	249,269			$	211,711
Stock-based compensation expense			(3,517	)			(2,739	)			(8,064	)			(12,925	)
Payroll tax expense related to stock-based compensation			(37	)			—				(230	)			(334	)
Transaction and other costs			—				—				(34	)			(11	)
Selling and marketing expense non-GAAP		$	65,087			$	57,318			$	240,941			$	198,441

(In thousands)		Three Months Ended December 31, 2022				Three Months Ended December 31, 2021				Twelve Months Ended December 31, 2022				Twelve Months Ended December 31, 2021
General and administrative expense GAAP		$	211,664			$	50,107			$	319,300			$	265,738
Changes in fair value of contingent earn-out liability			735				21,759				47,134				(55,900	)
Litigation costs, net of insurance proceeds			(18,645	)			(3,149	)			(22,734	)			(6,943	)
Stock-based compensation expense			(20,331	)			(13,129	)			(65,957	)			(62,284	)
Payroll tax expense related to stock-based compensation			(179	)			—				(649	)			(699	)
Transaction and other costs			1,602				(861	)			(4,055	)			(19,082	)
Impairment loss			(141,000	)			(26,431	)			(145,388	)			(26,431	)
General and administrative expense non-GAAP		$	33,846			$	28,296			$	127,651			$	94,399

(In thousands)		Three Months Ended December 31, 2022				Three Months Ended December 31, 2021				Twelve Months Ended December 31, 2022				Twelve Months Ended December 31, 2021
Product development expense GAAP		$	25,096			$	21,720			$	98,575			$	105,917
Stock-based compensation expense			(8,888	)			(7,810	)			(33,168	)			(44,952	)
Payroll tax expense related to stock-based compensation			(193	)			—				(1,074	)			(1,288	)
Transaction and other costs			35				—				(1,018	)			—
Product development expense non-GAAP		$	16,050			$	13,910			$	63,315			$	59,677

(In thousands)		Three Months Ended December 31, 2022				Three Months Ended December 31, 2021				Twelve Months Ended December 31, 2022				Twelve Months Ended December 31, 2021
Total costs and expenses GAAP		$	389,067			$	211,631			$	1,006,347			$	895,593
Depreciation and amortization expense			(15,878	)			(26,174	)			(89,713	)			(107,056	)
Changes in fair value of contingent earn-out liability			735				21,759				47,134				(55,900	)
Litigation costs, net of insurance proceeds			(18,645	)			(3,149	)			(22,734	)			(6,943	)
Stock-based compensation expense			(33,829	)			(24,408	)			(111,008	)			(123,910	)
Payroll tax expense related to stock-based compensation			(426	)			—				(2,054	)			(2,438	)
Transaction and other costs			1,643				(861	)			(5,226	)			(19,093	)
Impairment loss			(141,000	)			(26,431	)			(145,388	)			(26,431	)
Total costs and expenses non-GAAP		$	181,667			$	152,367			$	677,358			$	553,822

 

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Source: Bumble Inc.

FAQ

What were Bumble's fourth quarter 2022 revenues?

Bumble reported $241.6 million in total revenue for Q4 2022.

How many paying users did Bumble have in Q4 2022?

Bumble had 3.4 million total paying users in Q4 2022.

What is Bumble's revenue outlook for Q1 2023?

Bumble anticipates total revenue between $238 million and $243 million for Q1 2023.

How much did Bumble's net loss increase in Q4 2022?

Bumble's net loss increased to $159.2 million in Q4 2022, compared to $13.9 million in the same quarter of 2021.

What growth did Bumble App experience in 2022?

Bumble App revenue grew 31.4% to $694.3 million in full year 2022.