Does Bumble Have a Good Case for the Reopening Trade?

By Chris Lange Published Mar 11, 10:30AM EST

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Does Bumble Have a Good Case for the Reopening Trade? — © nicoletaionescu / Getty Images

Bumble Inc. (NASDAQ: BMBL) reported its most recent quarterly results after the markets closed on Wednesday, and this the dating app company also gave a rosy outlook about the reopening trade. Earlier this week analysts finally had a chance to weigh in on the stock after the post-IPO quiet period had ended.

During the fourth quarter, Bumble claimed about 12.7% of the U.S. dating market, with about 5.5 million average monthly users and 2.2 million downloads in the United States alone.

The company went public last month, raising $2.2 billion in its initial public offering, as well as making Whitney Wolfe Herd the youngest female chief executive to bring a company public.

Bumble posted a 31% increase in revenue to $165.6 million from $126.3 million in the same period last year. Analysts had expected $163.3 million in revenue. The Bumble app revenue increased 46.6% to $105.8 million, and Badoo app revenue increased 10.5% to $59.8 million.

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Total paying users increased 32.5% year over year to 2.7 million, compared to 2.0 million. Total Average revenue per paying user was $20.02, compared to $19.99 last year.

Looking ahead, Bumble has forecast revenue in the range of $163 million to $165 million and adjusted EBITDA of $41 million to $42 million for the first quarter.

The company went on to say that it expects pent-up demand from people who had been avoiding dating in person due to the COVID-19 pandemic. While dating apps have benefitted from social distancing, people are still eager to get back to “normal” life.

Here’s what a few analysts said about Bumble stock this week:

JPMorgan: Neutral with a $60 price target
Jefferies: Buy with an $80 price target
Cowen: Outperform with a $70 price target
Raymond James: Market Perform
Morgan Stanley: Equal Weight with a $56 target
Citigroup: Buy with a $75 price target
BMO Capital Markets: Market Perform with a $65 target
Goldman Sachs: Neutral with a $46 price target
Stifel: Buy with a $75 price target

Bumble stock traded up about 10% to $69.54 on Thursday and has a post-IPO range of $57.53 to $84.80.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.