Bumble Inc. Announces Fourth Quarter and Full Year 2023 Results
Total Revenue in 2023 Increased 16% to
Full Year
Fourth Quarter Bumble App Paying Users Increased 21% to 2.7 Million; Grew 83,000
“Today, we announced solid full-year results and a bold plan to transform Bumble and lead the company to its next phase of growth and innovation,” said
Fourth Quarter 2023 Financial and Operational Highlights:
(All comparisons relative to the Fourth Quarter 2022)
-
Total Revenue increased 13.2% to
$273.6 million , compared to$241.6 million . This includes a favorable impact of$3.4 million from foreign currency movements year over year.-
Bumble App Revenue increased 15.7% to
$220.7 million , compared to$190.8 million . This includes a favorable impact of$1.6 million from foreign currency movements year over year. Badoo App and Other Revenue increased 4.2% to$52.9 million , compared to$50.8 million . This includes a favorable impact of$1.8 million from foreign currency movements year over year.
-
Bumble App Revenue increased 15.7% to
- Total Paying Users increased 16.4% to 4.0million, compared to 3.4 million.
-
Total Average Revenue per Paying User ("ARPPU") decreased to
$22.64 , compared to$23.01 . -
Net loss was
$32.0 million , or (11.7)% of revenue, compared to net loss of$159.2 million , or (65.9)% of revenue. -
Adjusted EBITDA was
$73.7 million , or 26.9% of revenue, compared to$60.5 million , or 25.0% of revenue.
Full Year 2023 Operational and Financial Highlights:
(All comparisons relative to the Full Year 2022)
-
Revenue increased 16.4% to
$1,051.8 million , compared to$903.5 million . This includes an unfavorable impact of$1.4 million from foreign currency movements year over year.-
Bumble App Revenue Increased 21.7% to
$844.8 million , compared to$694.3 million . This includes an unfavorable impact of$2.9 million from foreign currency movements year over year. Badoo App and Other Revenue decreased 1.0% to$207.1 million , compared to$209.2 million . This includes a favorable impact of$1.5 million from foreign currency movements year over year.
-
Bumble App Revenue Increased 21.7% to
- Total Paying Users increased 16.9% to 3.7 million, compared to 3.2 million.
-
Total ARPPU did not change at
$23.03 . -
Net loss was
$1.9 million , or (0.2)% of revenue, compared to net loss of$114.1 million , or (12.6)% of revenue. -
Adjusted EBITDA was
$275.6 million , or 26.2% of revenue, compared to$226.9 million , or 25.1% of revenue.
“We surpassed
Key Operating Metrics:
The following metrics were calculated excluding paying users and revenue generated from Official, advertising and partnerships or affiliates and, for periods prior to the fourth quarter of 2023, excluding paying users and revenue generated from Fruitz. Beginning in the fourth quarter of 2023, paying users and revenue generated from Fruitz are included in our key operating metrics. Prior period information and key operating metrics have not been recast to include paying users and revenue generated from Fruitz. Please refer to the Definitions section for more information.
(in thousands, except ARPPU) |
|
Quarter Ended |
|
|
Quarter Ended |
|
|
Year Ended |
|
|
Year Ended |
|
||||
Bumble App Paying Users |
|
|
2,687.9 |
|
|
|
2,221.1 |
|
|
|
2,517.4 |
|
|
|
2,002.2 |
|
|
|
|
1,281.2 |
|
|
|
1,188.2 |
|
|
|
1,203.3 |
|
|
|
1,179.7 |
|
Total Paying Users |
|
|
3,969.1 |
|
|
|
3,409.3 |
|
|
|
3,720.7 |
|
|
|
3,181.9 |
|
Bumble App Average Revenue per Paying User |
|
$ |
27.37 |
|
|
$ |
28.64 |
|
|
$ |
27.97 |
|
|
$ |
28.90 |
|
|
|
$ |
12.69 |
|
|
$ |
12.48 |
|
|
$ |
12.70 |
|
|
$ |
13.06 |
|
Total Average Revenue per Paying User |
|
$ |
22.64 |
|
|
$ |
23.01 |
|
|
$ |
23.03 |
|
|
$ |
23.03 |
|
Balance Sheet:
As of
Share Repurchase Program:
During the fourth quarter of 2023, there was a total of
Transformation Plan:
Today, the Company announced that it intends to reduce its global workforce by approximately 350 roles to better align its operating model with future strategic priorities and to drive stronger operating leverage. We expect to incur approximately
Information about Bumble's use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”
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.
The Company anticipates Total Revenue, Adjusted EBITDA and Adjusted EBITDA margin for the quarter ending
First quarter 2024
-
Total Revenue between
$262 million and$268 million -
Bumble App Revenue between
$211 million and$215 million
-
Bumble App Revenue between
-
Adjusted EBITDA between
$67 million and$70 million , representing 26% margin at the midpoint of the range
Full year 2024
-
Total Revenue growth of 8% to 11%
- Bumble App Revenue growth of 9% to 11%
-
Adjusted EBITDA margin growth of at least 300 basis points, which excludes:
-
Expected severance and other non-recurring charges related to the transformation initiative of between
$20 million and$25 million
-
Expected severance and other non-recurring charges related to the transformation initiative of between
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.
Conference Call and Webcast Information
Bumble will host a live webcast of its conference call to discuss its fourth quarter and full year 2023 financial results at
Definitions
As used in this press release, unless otherwise noted or the context requires otherwise, the following terms have the following meanings. Our key metrics (Bumble App Paying Users,
Total Revenue is the sum of Bumble App Revenue and
Total Paying Users is the sum of Bumble App Paying Users and
Total Average Revenue per Paying User or Total ARPPU is a metric calculated based on Total Revenue in any measurement period 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 or Bumble For Friends app subscription plan and/or in-app purchases on Bumble app or Bumble For Friends app in the relevant period.
Bumble App Paying User is a user that has purchased or renewed a Bumble app or Bumble For Friends app subscription plan and/or made an in-app purchase on Bumble app or Bumble For Friends 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 or Bumble App ARPPU 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.
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. We believe Adjusted EBITDA provides visibility to the underlying continuing operating performance by excluding the impact of certain expenses, including income tax (benefit) provision, interest (income) expense, net, depreciation and amortization expense, stock-based compensation expenses, 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. We also provide Adjusted EBITDA margin, which is calculated as Adjusted EBITDA divided by revenue. 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 (used in) 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, effectuate discretionary share repurchases 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, net, depreciation and amortization expense, 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 the current views of management of
- the risk that the costs and charges related to our recently announced plan to implement a global workforce reduction and restructuring of our operations may be greater than anticipated or incurred in different periods than anticipated
- the risk that our restructuring efforts may not generate their intended benefits to the extent or as quickly as anticipated
- 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 orGoogle Play Store , and offset related fees - our ability to maintain the value and reputation of our brands
- risks relating to changes to our existing brands and products, or the introduction or acquisition of new brands or products
- risks relating to certain of our international operations, including geopolitical conditions and successful expansion into new markets
- the impact of data security breaches or cyber attacks on our systems and the costs of remediation related to any such incidents
- challenges with properly managing the use of artificial intelligence
- 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 data privacy laws - our substantial indebtedness
- affiliates of Blackstone Inc.’s (“Blackstone”) and our Founder’s control of us
-
the outsized voting rights of affiliates of
Blackstone and our Founder -
changes in business or macroeconomic conditions, including the impact of widespread health emergencies or pandemics and measures taken in response, 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, geopolitical events, political unrest, armed conflicts, including conflicts in
Eastern Europe and theMiddle East , extreme weather events or natural disasters - foreign currency exchange rate fluctuations
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
About Bumble
Consolidated Balance Sheets (in thousands, except share and per share information)
|
||||||||
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
355,642 |
|
|
$ |
402,559 |
|
Accounts receivable, net |
|
|
102,677 |
|
|
|
66,930 |
|
Other current assets |
|
|
34,732 |
|
|
|
31,882 |
|
Total current assets |
|
|
493,051 |
|
|
|
501,371 |
|
Right-of-use assets |
|
|
15,425 |
|
|
|
17,419 |
|
Property and equipment, net |
|
|
12,462 |
|
|
|
14,467 |
|
|
|
|
1,585,750 |
|
|
|
1,579,770 |
|
Intangible assets, net |
|
|
1,484,290 |
|
|
|
1,524,428 |
|
Deferred tax assets, net |
|
|
27,029 |
|
|
|
24,050 |
|
Other noncurrent assets |
|
|
7,120 |
|
|
|
31,116 |
|
Total assets |
|
$ |
3,625,127 |
|
|
$ |
3,692,621 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
4,611 |
|
|
$ |
3,367 |
|
Deferred revenue |
|
|
48,749 |
|
|
|
46,108 |
|
Accrued expenses and other current liabilities |
|
|
185,799 |
|
|
|
156,443 |
|
Current portion of long-term debt, net |
|
|
5,750 |
|
|
|
5,750 |
|
Total current liabilities |
|
|
244,909 |
|
|
|
211,668 |
|
Long-term debt, net |
|
|
615,176 |
|
|
|
619,223 |
|
Deferred tax liabilities, net |
|
|
5,673 |
|
|
|
8,077 |
|
Payable to related parties pursuant to a tax receivable agreement |
|
|
407,389 |
|
|
|
385,486 |
|
Other long-term liabilities |
|
|
14,707 |
|
|
|
14,588 |
|
Total liabilities |
|
$ |
1,287,854 |
|
|
$ |
1,239,042 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Shareholders’ equity: |
|
|
|
|
|
|
||
Class A common stock (par value |
|
|
1,385 |
|
|
|
1,298 |
|
Class B common stock (par value |
|
|
— |
|
|
|
— |
|
Preferred stock (par value |
|
|
— |
|
|
|
— |
|
|
|
|
(73,764 |
) |
|
|
— |
|
Additional paid-in capital |
|
|
1,772,449 |
|
|
|
1,691,911 |
|
Accumulated deficit |
|
|
(144,084 |
) |
|
|
(139,871 |
) |
Accumulated other comprehensive income |
|
|
79,029 |
|
|
|
74,477 |
|
|
|
|
1,635,015 |
|
|
|
1,627,815 |
|
Noncontrolling interests |
|
|
702,258 |
|
|
|
825,764 |
|
Total shareholders’ equity |
|
|
2,337,273 |
|
|
|
2,453,579 |
|
Total liabilities and shareholders’ equity |
|
$ |
3,625,127 |
|
|
$ |
3,692,621 |
|
Consolidated Statements of Operations (in thousands, except per share data)
|
||||||||||||||||
|
|
Quarter Ended
2023 |
|
|
Quarter Ended
2022 |
|
|
Year Ended
2023 |
|
|
Year Ended
2022 |
|
||||
Revenue |
|
$ |
273,637 |
|
|
$ |
241,628 |
|
|
$ |
1,051,830 |
|
|
$ |
903,503 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue |
|
|
80,469 |
|
|
|
67,788 |
|
|
|
307,835 |
|
|
|
249,490 |
|
Selling and marketing expense |
|
|
72,613 |
|
|
|
68,641 |
|
|
|
270,380 |
|
|
|
249,269 |
|
General and administrative expense |
|
|
79,943 |
|
|
|
208,795 |
|
|
|
221,649 |
|
|
|
308,855 |
|
Product development expense |
|
|
30,271 |
|
|
|
27,965 |
|
|
|
130,565 |
|
|
|
109,020 |
|
Depreciation and amortization expense |
|
|
17,203 |
|
|
|
15,878 |
|
|
|
68,028 |
|
|
|
89,713 |
|
Total operating costs and expenses |
|
|
280,499 |
|
|
|
389,067 |
|
|
|
998,457 |
|
|
|
1,006,347 |
|
Operating earnings (loss) |
|
|
(6,862 |
) |
|
|
(147,439 |
) |
|
|
53,373 |
|
|
|
(102,844 |
) |
Interest income (expense), net |
|
|
(4,949 |
) |
|
|
(5,617 |
) |
|
|
(21,534 |
) |
|
|
(24,063 |
) |
Other income (expense), net |
|
|
(20,259 |
) |
|
|
(8,540 |
) |
|
|
(26,537 |
) |
|
|
16,189 |
|
Income (loss) before income taxes |
|
|
(32,070 |
) |
|
|
(161,596 |
) |
|
|
5,302 |
|
|
|
(110,718 |
) |
Income tax benefit (provision) |
|
|
58 |
|
|
|
2,350 |
|
|
|
(7,170 |
) |
|
|
(3,406 |
) |
Net earnings (loss) |
|
|
(32,012 |
) |
|
|
(159,246 |
) |
|
|
(1,868 |
) |
|
|
(114,124 |
) |
Net earnings (loss) attributable to noncontrolling interests |
|
|
(5,986 |
) |
|
|
(48,676 |
) |
|
|
2,345 |
|
|
|
(34,378 |
) |
Net earnings (loss) attributable to |
|
$ |
(26,026 |
) |
|
$ |
(110,570 |
) |
|
$ |
(4,213 |
) |
|
$ |
(79,746 |
) |
Net earnings (loss) per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings (loss) per share |
|
$ |
(0.19 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.62 |
) |
Diluted earnings (loss) per share |
|
$ |
(0.19 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.62 |
) |
Consolidated Statements of Cash Flows (in thousands)
|
||||||||||||||||
|
|
Quarter Ended D ecember 31, 2023 |
|
|
Quarter Ended D ecember 31, 2022 |
|
|
Year Ended D ecember 31, 2023 |
|
|
Year Ended D ecember 31, 2022 |
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings (loss) |
|
$ |
(32,012 |
) |
|
$ |
(159,246 |
) |
|
$ |
(1,868 |
) |
|
$ |
(114,124 |
) |
Adjustments to reconcile net earnings (loss) to net cash provided
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization expense |
|
|
17,203 |
|
|
|
15,878 |
|
|
|
68,028 |
|
|
|
89,713 |
|
Impairment loss |
|
|
— |
|
|
|
141,000 |
|
|
|
— |
|
|
|
145,388 |
|
Gain on settlement of lease liabilities |
|
|
— |
|
|
|
(2,140 |
) |
|
|
— |
|
|
|
(2,140 |
) |
Changes in fair value of interest rate swap |
|
|
4,777 |
|
|
|
1,318 |
|
|
|
13,806 |
|
|
|
(17,086 |
) |
Changes in fair value of contingent earn-out liability |
|
|
(5,328 |
) |
|
|
(735 |
) |
|
|
(29,569 |
) |
|
|
(47,134 |
) |
Tax receivable agreement liability remeasurement expense |
|
|
10,341 |
|
|
|
5,332 |
|
|
|
10,341 |
|
|
|
5,332 |
|
Non-cash lease expense |
|
|
878 |
|
|
|
1,060 |
|
|
|
3,518 |
|
|
|
4,539 |
|
Deferred income tax |
|
|
1,714 |
|
|
|
1,047 |
|
|
|
(7,166 |
) |
|
|
(5,454 |
) |
Stock-based compensation expense |
|
|
20,678 |
|
|
|
33,829 |
|
|
|
104,338 |
|
|
|
111,008 |
|
Net foreign exchange difference |
|
|
4,223 |
|
|
|
24,692 |
|
|
|
923 |
|
|
|
(3,362 |
) |
Other, net |
|
|
9,825 |
|
|
|
(11,274 |
) |
|
|
11,065 |
|
|
|
1,189 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(3,272 |
) |
|
|
(15,547 |
) |
|
|
(36,031 |
) |
|
|
(20,723 |
) |
Other current assets |
|
|
(1,136 |
) |
|
|
2,703 |
|
|
|
(2,920 |
) |
|
|
22,964 |
|
Accounts payable |
|
|
(689 |
) |
|
|
(4,156 |
) |
|
|
1,775 |
|
|
|
(13,997 |
) |
Deferred revenue |
|
|
(556 |
) |
|
|
1,210 |
|
|
|
2,593 |
|
|
|
5,889 |
|
Legal liabilities |
|
|
43,765 |
|
|
|
19,125 |
|
|
|
45,240 |
|
|
|
11,995 |
|
Lease liabilities |
|
|
(939 |
) |
|
|
(2,747 |
) |
|
|
(3,930 |
) |
|
|
(5,984 |
) |
Accrued expenses and other current liabilities |
|
|
(6,179 |
) |
|
|
(111 |
) |
|
|
1,485 |
|
|
|
(34,991 |
) |
Other, net |
|
|
124 |
|
|
|
(66 |
) |
|
|
458 |
|
|
|
(81 |
) |
Net cash provided by (used in) operating activities |
|
|
63,417 |
|
|
|
51,172 |
|
|
|
182,086 |
|
|
|
132,941 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
(2,166 |
) |
|
|
(5,022 |
) |
|
|
(14,935 |
) |
|
|
(16,333 |
) |
Acquisition of business, net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
(9,820 |
) |
|
|
(69,720 |
) |
Net cash provided by (used in) investing activities |
|
|
(2,166 |
) |
|
|
(5,022 |
) |
|
|
(24,755 |
) |
|
|
(86,053 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Repayment of term loan |
|
|
(1,437 |
) |
|
|
(1,437 |
) |
|
|
(5,750 |
) |
|
|
(5,750 |
) |
Distributions paid to noncontrolling interest holders |
|
|
(23 |
) |
|
|
— |
|
|
|
(19,310 |
) |
|
|
— |
|
Share repurchases |
|
|
(91,940 |
) |
|
|
— |
|
|
|
(112,830 |
) |
|
|
— |
|
Purchase of Common Units |
|
|
(44,309 |
) |
|
|
— |
|
|
|
(44,309 |
) |
|
|
— |
|
Withholding tax paid on behalf of employees on stock-based awards |
|
|
(2,827 |
) |
|
|
(1,852 |
) |
|
|
(16,692 |
) |
|
|
(9,204 |
) |
Net cash provided by (used in) financing activities |
|
|
(140,536 |
) |
|
|
(3,289 |
) |
|
|
(198,891 |
) |
|
|
(14,954 |
) |
Effects of exchange rate changes on cash and cash equivalents |
|
|
(4,163 |
) |
|
|
(7,708 |
) |
|
|
(6,280 |
) |
|
|
5,933 |
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
|
(83,448 |
) |
|
|
35,153 |
|
|
|
(47,840 |
) |
|
|
37,867 |
|
Cash and cash equivalents and restricted cash, beginning of the period |
|
|
442,650 |
|
|
|
371,889 |
|
|
|
407,042 |
|
|
|
369,175 |
|
Cash and cash equivalents and restricted cash, end of the period |
|
$ |
359,202 |
|
|
$ |
407,042 |
|
|
$ |
359,202 |
|
|
$ |
407,042 |
|
Less restricted cash |
|
|
(3,560 |
) |
|
|
(4,483 |
) |
|
|
(3,560 |
) |
|
|
(4,483 |
) |
Cash and cash equivalents, end of the period |
|
$ |
355,642 |
|
|
$ |
402,559 |
|
|
$ |
355,642 |
|
|
$ |
402,559 |
|
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
2023 |
|
|
Quarter Ended
2022 |
|
|
Year Ended
2023 |
|
|
Year Ended
2022 |
|
||||
Net earnings (loss) |
|
$ |
(32,012 |
) |
|
$ |
(159,246 |
) |
|
$ |
(1,868 |
) |
|
$ |
(114,124 |
) |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax (benefit) provision |
|
|
(58 |
) |
|
|
(2,350 |
) |
|
|
7,170 |
|
|
|
3,406 |
|
Interest (income) expense, net |
|
|
4,949 |
|
|
|
5,617 |
|
|
|
21,534 |
|
|
|
24,063 |
|
Depreciation and amortization expense |
|
|
17,203 |
|
|
|
15,878 |
|
|
|
68,028 |
|
|
|
89,713 |
|
Stock-based compensation expense |
|
|
20,678 |
|
|
|
33,829 |
|
|
|
104,338 |
|
|
|
111,008 |
|
Employer costs related to stock-based compensation(1) |
|
|
510 |
|
|
|
426 |
|
|
|
4,535 |
|
|
|
2,054 |
|
Litigation costs, net of insurance reimbursements(2) |
|
|
47,044 |
|
|
|
18,645 |
|
|
|
71,918 |
|
|
|
22,734 |
|
Foreign exchange (gain) loss (3) |
|
|
4,624 |
|
|
|
2,371 |
|
|
|
2,185 |
|
|
|
(3,679 |
) |
Changes in fair value of interest rate swaps(4) |
|
|
4,777 |
|
|
|
1,318 |
|
|
|
13,806 |
|
|
|
(17,086 |
) |
Transaction and other costs(5) |
|
|
315 |
|
|
|
(1,643 |
) |
|
|
2,309 |
|
|
|
5,226 |
|
Changes in fair value of contingent earn-out liability |
|
|
(5,328 |
) |
|
|
(735 |
) |
|
|
(29,569 |
) |
|
|
(47,134 |
) |
Changes in fair value of investments |
|
|
665 |
|
|
|
56 |
|
|
|
843 |
|
|
|
18 |
|
Tax receivable agreement liability remeasurement expense(6) |
|
|
10,341 |
|
|
|
5,332 |
|
|
|
10,341 |
|
|
|
5,332 |
|
Impairment loss(7) |
|
|
— |
|
|
|
141,000 |
|
|
|
— |
|
|
|
145,388 |
|
Adjusted EBITDA |
|
$ |
73,708 |
|
|
$ |
60,498 |
|
|
$ |
275,570 |
|
|
$ |
226,919 |
|
Net earnings (loss) margin |
|
|
(11.7 |
)% |
|
|
(65.9 |
)% |
|
|
(0.2 |
)% |
|
|
(12.6 |
)% |
Adjusted EBITDA margin |
|
|
26.9 |
% |
|
|
25.0 |
% |
|
|
26.2 |
% |
|
|
25.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
63,417 |
|
|
$ |
51,172 |
|
|
$ |
182,086 |
|
|
$ |
132,941 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
(2,166 |
) |
|
|
(5,022 |
) |
|
|
(14,935 |
) |
|
|
(16,333 |
) |
Free cash flow |
|
$ |
61,251 |
|
|
$ |
46,150 |
|
|
$ |
167,151 |
|
|
$ |
116,608 |
|
Operating cash flow conversion |
|
|
(198.1 |
)% |
|
|
(32.1 |
)% |
|
* |
|
|
|
(116.5 |
)% |
|
Free cash flow conversion |
|
|
83.1 |
% |
|
|
76.3 |
% |
|
|
60.7 |
% |
|
|
51.4 |
% |
* Not meaningful |
|
(1) |
Represents employer portion of |
(2) |
Represents certain litigation costs and insurance proceeds associated with pending litigations or settlements of litigation. Includes amounts accrued with respect to the litigation related to the Biometric Information Privacy Act, the mass arbitrations and the Company’s class action lawsuit related to the secondary public stock offering, representing management’s then-current estimated probable loss for this matter. |
(3) |
Represents foreign exchange (gain) loss due to foreign currency transactions. |
(4) |
Represents fair value (gain) loss on interest rate swaps. |
(5) |
Represents transaction costs related to acquisitions, secondary offerings, and share repurchases such as legal, accounting, advisory fees and other related costs. Amount in 2022 also includes employee-related restructuring costs directly associated with our decision to discontinue our operations in |
(6) |
Represents recognized adjustments to the tax receivable agreement liability. |
(7) |
Represents impairment loss of the Badoo brand and a right-of-use asset related to our |
Supplementary Information
Stock-Based Compensation Expense
|
|
|
|
|||||||||||||
(in thousands) |
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
||||
Cost of revenue |
|
$ |
1,253 |
|
|
$ |
1,093 |
|
|
$ |
4,054 |
|
|
$ |
3,819 |
|
Selling and marketing expense |
|
|
2,611 |
|
|
|
3,517 |
|
|
|
9,803 |
|
|
|
8,064 |
|
General and administrative expense |
|
|
7,980 |
|
|
|
19,616 |
|
|
|
52,008 |
|
|
|
63,575 |
|
Product development expense |
|
|
8,834 |
|
|
|
9,603 |
|
|
|
38,473 |
|
|
|
35,550 |
|
Total stock-based compensation expense |
|
$ |
20,678 |
|
|
$ |
33,829 |
|
|
$ |
104,338 |
|
|
$ |
111,008 |
|
Reconciliation of GAAP costs and expenses to non-GAAP costs and expenses by function
(In thousands) |
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
||||
Cost of revenue GAAP |
|
$ |
80,469 |
|
|
$ |
67,788 |
|
|
$ |
307,835 |
|
|
$ |
249,490 |
|
Stock-based compensation expense |
|
|
(1,253 |
) |
|
|
(1,093 |
) |
|
|
(4,054 |
) |
|
|
(3,819 |
) |
Payroll tax expense related to stock-based compensation |
|
|
(24 |
) |
|
|
(17 |
) |
|
|
(221 |
) |
|
|
(101 |
) |
Transaction and other costs |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
(119 |
) |
Cost of revenue non-GAAP |
|
$ |
79,192 |
|
|
$ |
66,684 |
|
|
$ |
303,560 |
|
|
$ |
245,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(In thousands) |
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
||||
Selling and marketing expense GAAP |
|
$ |
72,613 |
|
|
$ |
68,641 |
|
|
$ |
270,380 |
|
|
$ |
249,269 |
|
Stock-based compensation expense |
|
|
(2,611 |
) |
|
|
(3,517 |
) |
|
|
(9,803 |
) |
|
|
(8,064 |
) |
Payroll tax expense related to stock-based compensation |
|
|
(33 |
) |
|
|
(37 |
) |
|
|
(343 |
) |
|
|
(230 |
) |
Transaction and other costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(34 |
) |
Selling and marketing expense non-GAAP |
|
$ |
69,969 |
|
|
$ |
65,087 |
|
|
$ |
260,234 |
|
|
$ |
240,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(In thousands) |
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
||||
General and administrative expense GAAP |
|
$ |
79,943 |
|
|
$ |
208,795 |
|
|
$ |
221,649 |
|
|
$ |
308,855 |
|
Changes in fair value of contingent earn-out liability |
|
|
5,328 |
|
|
|
735 |
|
|
|
29,569 |
|
|
|
47,134 |
|
Litigation costs, net of insurance proceeds |
|
|
(47,044 |
) |
|
|
(18,645 |
) |
|
|
(71,918 |
) |
|
|
(22,734 |
) |
Stock-based compensation expense |
|
|
(7,980 |
) |
|
|
(19,616 |
) |
|
|
(52,008 |
) |
|
|
(63,575 |
) |
Payroll tax expense related to stock-based compensation |
|
|
(168 |
) |
|
|
(179 |
) |
|
|
(1,406 |
) |
|
|
(649 |
) |
Transaction and other costs |
|
|
(315 |
) |
|
|
1,602 |
|
|
|
(2,309 |
) |
|
|
(4,055 |
) |
Impairment loss |
|
|
— |
|
|
|
(141,000 |
) |
|
|
— |
|
|
|
(145,388 |
) |
General and administrative expense non-GAAP |
|
$ |
29,764 |
|
|
$ |
31,692 |
|
|
$ |
123,577 |
|
|
$ |
119,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(In thousands) |
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
||||
Product development expense GAAP |
|
$ |
30,271 |
|
|
$ |
27,965 |
|
|
$ |
130,565 |
|
|
$ |
109,020 |
|
Stock-based compensation expense |
|
|
(8,834 |
) |
|
|
(9,603 |
) |
|
|
(38,473 |
) |
|
|
(35,550 |
) |
Payroll tax expense related to stock-based compensation |
|
|
(285 |
) |
|
|
(193 |
) |
|
|
(2,565 |
) |
|
|
(1,074 |
) |
Transaction and other costs |
|
|
— |
|
|
|
35 |
|
|
|
— |
|
|
|
(1,018 |
) |
Product development expense non-GAAP |
|
$ |
21,152 |
|
|
$ |
18,204 |
|
|
$ |
89,527 |
|
|
$ |
71,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(In thousands) |
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
||||
Total operating costs and expenses GAAP |
|
$ |
280,499 |
|
|
$ |
389,067 |
|
|
$ |
998,457 |
|
|
$ |
1,006,347 |
|
Depreciation and amortization expense |
|
|
(17,203 |
) |
|
|
(15,878 |
) |
|
|
(68,028 |
) |
|
|
(89,713 |
) |
Changes in fair value of contingent earn-out liability |
|
|
5,328 |
|
|
|
735 |
|
|
|
29,569 |
|
|
|
47,134 |
|
Litigation costs, net of insurance proceeds |
|
|
(47,044 |
) |
|
|
(18,645 |
) |
|
|
(71,918 |
) |
|
|
(22,734 |
) |
Stock-based compensation expense |
|
|
(20,678 |
) |
|
|
(33,829 |
) |
|
|
(104,338 |
) |
|
|
(111,008 |
) |
Payroll tax expense related to stock-based compensation |
|
|
(510 |
) |
|
|
(426 |
) |
|
|
(4,535 |
) |
|
|
(2,054 |
) |
Transaction and other costs |
|
|
(315 |
) |
|
|
1,643 |
|
|
|
(2,309 |
) |
|
|
(5,226 |
) |
Impairment loss |
|
|
— |
|
|
|
(141,000 |
) |
|
|
— |
|
|
|
(145,388 |
) |
Total operating costs and expenses non-GAAP |
|
$ |
200,077 |
|
|
$ |
181,667 |
|
|
$ |
776,898 |
|
|
$ |
677,358 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227354984/en/
Investor Contact
ir@team.bumble.com
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press@team.bumble.com
Source: