Bumble 2025 Q1 Earnings Misses Targets as Net Income Falls 41%

Bumble Inc. reported its fiscal 2025 Q1 earnings on May 12th, 2025. While the company's earnings per share slightly missed expectations, revenue came in below forecasts, indicating ongoing challenges. Bumble's guidance for the second quarter signals a cautious approach, with revenue projections falling within a narrower range than analysts anticipated. The company remains focused on long-term growth amid market volatility.

Revenue
Bumble's total revenue for the first quarter of 2025 fell 7.7% to $247.10 million, compared to $267.77 million in the same quarter of 2024. Revenue from the Bumble App led the decline, registering $201.82 million, while Badoo App and other segments contributed $45.28 million. Overall, the company experienced a downturn in revenue across its various segments.

Earnings/Net Income
Bumble's EPS dropped significantly by 31.6% to $0.13 in the first quarter of 2025, down from $0.19 in the same period of 2024. The company's net income also decreased, reaching $19.83 million, a 41.5% decline from $33.87 million in 2024 Q1. The EPS performance was notably weak, reflecting challenging market conditions.

Post-Earnings Price Action Review
The strategy of buying BMBL when revenue beats and holding for 30 days resulted in poor performance, with a substantial loss of -93.32%. This approach demonstrated significant underperformance against the benchmark, characterized by high volatility and negative returns. The strategy's maximum drawdown reached -95.08%, highlighting its ineffectiveness and riskiness. Investors faced considerable challenges, as the strategy failed to deliver positive outcomes. The need for better risk management and alternative strategies is evident, given the lack of success in achieving favorable results.

CEO Commentary
"Since I returned in mid-March, we have set an accelerated path to return to sustainable, long-term growth," said Whitney Wolfe Herd, Founder & CEO of Bumble Inc. She emphasized the focus on strengthening the member base through technology and product innovation, enhancing user experience with quality matches. Wolfe Herd highlighted efforts to drive productivity and efficiency within the organization, maintaining a clear path forward to maximize long-term value for both members and shareholders. Despite challenges, the tone of her remarks was optimistic, reflecting confidence in the company's strategic priorities and commitment to improving engagement and safety.

Guidance
Bumble anticipates total revenue for the second quarter of 2025 to be in the range of $235 million to $243 million, with Bumble App revenue projected between $193 million to $199 million. Adjusted EBITDA is expected to fall between $79 million and $84 million, indicating a focus on profitability while navigating ongoing challenges in monetization and user growth.

Additional News
In recent weeks, Bumble Inc. has announced a series of changes to strengthen its leadership team. Vivek Sagi has been appointed as the Chief Technology Officer, Julie Radford as the Chief Communications Officer, and Deirdre Runnette as the Chief Legal Officer. These strategic hires aim to bolster the company's efforts in innovation and operational efficiency. Additionally, Bumble executed a share repurchase program, buying back $28.7 million in shares during the first quarter of 2025. This move aligns with Bumble's ongoing strategy to enhance shareholder value and manage its capital structure effectively.