Is Bumble Stock a Buy?

Bumble (BMBL) IPO Stock Analysis – Buy Bumble Stock Now?

Is Bumble Stock a Buy?

Its revenue rose 26% year over year to $208.2 million, but missed analysts estimates by $1 million. Its net loss narrowed from $26.1 million to $14.7 million, or $0.08 per share, but also missed analysts expectations by seven cents. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 24% to $54.8 million.

Bumbles total average revenue per paying user (ARPPU) rose 14% year over year to $22.83, with 10% growth at Bumble and 2% growth at Badoo. But its total ARRPU still dipped 1% sequentially — with a 1% decline at Bumble and a 3% drop at Badoo — due to currency-related headwinds and its ongoing expansion into lower-revenue overseas markets.

Bumble also said it will discontinue its operations in Russia, and remove all of its apps from Apples App Store and Alphabets Google Play Store in Russia and Belarus. During the call, Wolfe Herd said that “substantially all of our technical workforce — including product development, data science, and engineering — is based in the U.S., U.K., and Spain.” She also noted that none of its senior leadership was based in Russia and that its “entire cybersecurity team is based outside of Russia, primarily in the U.K.”

Bumbles big post-earnings rally might seem unjustified, but the stock had already been crushed prior to the release of its earnings report. Even after its latest gains, Bumbles stock remains 45% below its IPO price and 70% below its all-time high. So is it finally safe to pick up some shares of this former highflier?

With a market cap of $4.4 billion, Bumble trades at just five times its 2022 sales target for 22%-23% growth. Match, which is expected to generate just 18% sales growth this year, trades at eight times that estimate. However, Match is also better diversified, leads the online dating market with Tinder, and serves a much larger global audience than Bumbles limited portfolio.

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