Bumble (BMBL) Q1 Earnings Preview: Key Revenue Drivers?

Online dating platform Bumble (NASDAQ: BMBL) is set to announce its first-quarter financial results after the closing bell today, investors will be looking towards growth in driver application Bumble, as well as growth across the company’s other applications; Badoo, Fruitz and Bumble. The company has previously demonstrated solid growth in key metrics such as total paying users and average revenue per paying user in Q1, however earnings and revenue still came in slightly shorter than expectations.

In Q1, the company posted a loss of $0.08 per share, missing the consensus expectation of $0.00. Revenue also missed the mark of $209.6M, totalling $208.2M. The company remained optimistic, issuing positive guidance for the coming quarters. Looking at the forthcoming report, analysts are expecting earnings pegged at $0.01 per share on revenue of $208.4M, marginally higher than Q4.

Also Read: What Do Quarterly Earnings Mean for Investors?

A continuation of growth throughout paying users would be great to see, which has been driven primarily by the Bumble App, a hugely successful dating platform. The company’s efforts to expand its market presence through digital marketing, enhancement of user experience and a diversified product offering will also be key drivers of revenue growth.

For Q1, Bumble hopes to reel in total revenue of between $207-$210M, with revenue solely from the Bumble App expected to draw in anywhere in the $152-$153M range. Clearly a firm driver of revenue growth, growth in the Bumble App will be an important metric for investors, but the new addition of Fruitz might still act as a costly tailwind.