There’s quite a bit of buzz surrounding Bumble (NASDAQ:BMBL) today. Indeed, shares of BMBL stock are flying higher by more than 40% after the dating app reported its Q4 earnings results. Many investors were concerned that the theme of reopening would cause fewer people to use Bumble. However, the company reported strong growth in several key metrics.
The earnings report showed Q4 Bumble app revenue of $150.5 million, up 42% year-over-year (YOY). Furthermore, total Q4 revenue clocked in at $208.2 million, up 25.7% YOY. Meanwhile, total 2021 revenue came in at $765.7 million, up 41% YOY from $542.2 million.
In addition, paying users grew an impressive 29% YOY to 1.6 million. Compared to Q3, Bumble added 108,000 new paying users. However, the company also announced that it would be discontinuing operations in Russia and Belarus in light of the Russian invasion of Ukraine. Combined, Russia, Ukraine and Belarus made up 2.8% of total 2021 revenue. Moreover, the three countries make up less than 0.1% of Bumble app revenue. Therefore, Bumble expects to lose about $20 million of revenue in 2022 due to the Russia-Ukraine war.
In terms of Q1 guidance, Bumble estimates total revenue to be between $207 million and $210 million. From the Bumble app, the company estimates Q1 revenue to fall between $152 million and $153 million.
After reporting Q4 earnings, Bumble received a slew of updates from Wall Street analysts. Let’s take a look at how they viewed the quarter.
Wall Street Analysts Weigh In on BMBL Stock Price Predictions
- Evercore ISI has a price target of $40. Analyst Mark Mahaney is bullish “given the current valuation and the company’s FY’22 guidance for its core Bumble App.” The analyst adds that Badoo, a unit of Bumble, is the second most downloaded dating app globally, while Bumble was the third most downloaded dating app. Looking forward, the analyst believes that Bumble will be able to achieve a 21% compound annual growth rate (CAGR) until 2024.
- Raymond James has a price target of $29. Analyst Andrew Marok notes that Bumble expects to lose a total of $40 million this year from exiting Russia and Belarus and unfavorable foreign currency movements. Despite the loss, the company still reported fiscal year 2022 revenue estimates above expectations. The analyst adds that he remains bullish on Bumble’s position in the dating market, brand power, and “product enhancement opportunities.” However, Marok’s price target also factors in “pullbacks in digital media valuations.”
- Piper Sandler has a price target of $21. Analyst Matt Farrell lowered his price target from $35 after reviewing Q4 earnings. Farrell notes that Bumble’s management expects to offset the $20 million “geopolitical headwind” by achieving 34% to 36% revenue growth via the Bumble app. However, the analyst adds that the company’s BFF platform is not expected to generate any revenue this year. As a result, Farrell notes that Piper Sandler will “remain on the sidelines as we prefer to wait for signs of continued execution.”
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
