Bumble (BMBL) surpassed analysts' expectations on both the top and bottom lines during the first quarter, the dating and networking site's second report since going public on Feb. 11. The stock popped in after-hours trading after closing 7% lower on Wednesday.
Here's how Bumble's business fared in the quarter ending March 31, 2021.
$1.69 earnings per share vs. a loss of $0.04 cents per share expected by analysts
$170.7 million in revenue compared to $164.6 million expected by analysts
The company projects second-quarter revenue in the range of $175 to $178 million and full-year 2021 revenue in the range of $724 to $734 million. Total paying users climbed to 2.8 million, representing a 30% year-over-year increase. Bumble disclosed 42 million monthly active users in its January prospectus, but has since decided not to break out the metric.
The coronavirus pandemic proved to be jet fuel for the online dating industry as singles – isolated at home – turned to swiping, texting, and video chatting with potential matches, even if it didn't translate to an in-person date.
The 20 most popular dating apps, including Bumble and Match Group's (MTCH) Tinder and Hinge, saw a 13.4% year-over-year increase in daily active users in the fourth quarter of 2020, according to app tracking firm Apptopia.
While new downloads of Bumble may have plateaued, engagement and time spent are likely to be up as vaccine rollout continues and people feel more comfortable going out and meeting strangers in person into the summer, Morgan Stanley analyst Lauren Schenk wrote in a research note last week. Schenk has a hold rating on the stock, and analyst sentiment remains generally positive across the board — the company has seven buy, eight hold and no sell ratings.