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Bumble beats profit estimates, bets on international growth

Bumble beats profit estimates, bets on international growth

The Bumble app is shown on an Apple iPhone in this photo illustration on Feb 11, 2021. (Photo: Reuters/Mike Blake)

Bumble on Tuesday (Mar 8) beat fourth-quarter profit estimates and said it expected strong growth at its Bumble app in 2022, sending the dating company's shares up over 20 per cent in extended trading.

The company also said it is discontinuing operations in Russia, joining a growing number of firms that are exiting the country following its invasion of Ukraine. Bumble is also removing all of its apps from the Apple App Store and Google Play Store in Russia and Belarus.

The Austin, Texas-based company said combined revenue from Russia, Ukraine, and Belarus was about 2.8 per cent of total annual revenue in 2021. It expects to lose about US$20 million in revenue from the region this year.

For 2022, Bumble forecast full-year 2022 revenue between US$934 million and US$944 million, the mid-point of which is nearly in line with analysts' estimates, according to IBES data from Refinitiv.

The company is also increasingly focusing on its expansion in the international market.

"We expect Bumble App to have another strong year in 2022 and grow revenue 34 per cent to 36 per cent year-over-year, driven by continued international expansion and product innovation," Chief Financial Officer Anu Subramanian said in a statement.

The COVID-19 crisis had boosted the use of dating apps as people confined to their homes used the virtual platforms to meet new people and develop both personal and professional relationships. Now even with the reopening of economy, the pandemic-led surge in users has not gone down.

The company, which consisted of Bumble and Badoo app, has recently bought France's Fruitz in its first acquisition in an attempt to strengthen its foothold in Europe, where it plays catch-up with Tinder owner Match Group.

Excluding items, Bumble earned 13 cents per share for the quarter ended Dec 31. Analysts on average had expected the company to break even on a per share basis, according to IBES data from Refinitiv.

Source: Reuters/az
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