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Bumble Inc(BMBL-Q)
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Bumble (BMBL) Q3 Earnings Report Preview: What To Look For

StockStory - Mon Nov 6, 2023

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Online dating app Bumble (NASDAQ:BMBL) will be reporting earnings tomorrow afternoon. Here's what to look for.

Last quarter Bumble reported revenues of $259.7 million, up 18.5% year on year, beating analyst revenue expectations by 1.2%. It was a decent quarter for the company, with strong growth in its user base. The company reported 3.6 million active buyers, up 20.3% year on year.

Is Bumble buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Bumble's revenue to grow 19.1% year on year to $277 million, improving on the 16.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Bumble Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Bumble's peers in the consumer subscription segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Udemy delivered top-line growth of 16.6% year on year, beating analyst estimates by 3.6% and Coursera reported revenues up 21.4% year on year, exceeding estimates by 4.2%. Udemy traded up 13% on the results, and Coursera was up 15.6%.

Read our full analysis of Udemy's results here and Coursera's results here.

There has been positive sentiment among investors in the consumer subscription segment, with the stocks up on average 2.4% over the last month. Bumble is down 4.5% during the same time, and is heading into the earnings with analyst price target of $21.7, compared to share price of $13.68.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.

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