BMBL - Earnings call transcript Q2 2021

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Operator

[Operator Instructions] Welcome to the Bumble Second Quarter, 2021. Financial results. At this time, all participants are in a listen-only mode After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Instructions] I would now like to hand the conference over to your speaker today, Brinlea Johnson, please go ahead.

Brinlea Johnson

Thank you for joining us to discuss Bumble's Second Quarter 2021 Financial results. Whitney Anu Founder Subramanian is Shaukat, CEO, today and President, CFO me Wolfe and Herd, Tariq With of Bumble.

I'd made our and to today and reflect begin, statements beliefs, subject to These assumptions, we like current and everyone are remind us. Before uncertainties risks that Forward-looking may statements be available are expectations on information that call our currently various this forward-looking statements. to certain based on

to reasonable, it Form these Descriptions statements revise XXXX. in statements the be our periodic with other our obligation expectations cause XX-K materially discussed undertake Although occur of in call. results could year actual and on any subsequent are reflect including forward-looking this ended December we for that will our from And filings. factors changes the risks XXst, filings more detail to SEC, that to no differ these after Report are Annual these

Investor non-GAAP financial we call, the a also the at These our not or and addition substitute section During be GAAP certain Whitney. for measures most as in to our available earnings annihilation refer for non-GAAP considered release, it comparable which I on available the is press website will that, ir.bumble.com. Reconciliation is to from to in With measures. measures results. today's turn to should GAAP Relations over

Whitney Wolfe Herd

tuning million in to margin. app year-over-year, and revenue total with the app Inc., XXX up and quarter staying XX% million. Bumble revenue and and you excellent grew group revenue representing strong us. of of is thank XX% hope million all year-over-year XX today Brinlea, delivered XX Bumble to results for XXX you, million grew other Badoo XX% everyone and adjusted XX% a XXX EBITDA joining we level Thank At was well. for healthy us. for another QX I

Our QX X,XXX,XXX. average to increased in year-over-year paying users XX%

in ever than more people benefit, and to When and people of relationships reopen the positive the challenges year-and-a-half us the love for continuing new desire see safety, with to and Bumble need ever And variant, most before. the pandemic, people our and access facing of in relationship when than dating performance helps climes, we're more meet safely. the important some to excellent for online life quickly demonstrates that recognize the loneliness people find turn Inc. surges, provides. platforms. After Even real affected and that the new world is markets. that Our is trends across Delta a now markets connections. the Despite accelerates COVID before

in QX, gained example, in download of for in and According grew at have we we the to sources, for activity including major markets U.S. For app app Bumble or the in variant India, over both our in and most engagement share the Badoo Bumble Bumble delta that download spread app XXXX, monthly in with gain maintained active and saw third-party in share app. of the QX, year-over-year the market. users even XX% increased and

users seeing serve re-open. as the are that QX we traction to in we the and QX in are also, markets effectively its results faces able our And curves. Our showed pandemic world as

around am the rest to situation friend pleased for XXXX all improvements driven performance core the are priorities confident actively increasing rapid monetization at international rate efforts. to of in of in next up a to of we users Badoo, our and I we XX% markets year-on-year the acceleration previous full-year global strategic XXX the innovation, million, continue including growth our we re-engagement revenue performance from that guide $XXX monitor data expand to expansion, two-tier against guidance is starting driven generation of our Bumble the This investment product Bumble strong While are our say time the in efforts, markets, Covid our world, midpoint. in XXX of efforts, in ongoing our by by our high-end BFF, of engagement execution including expansion, service, representing of million pricing the QX. And and to earlier finding we outlined on for We're and these this first science year, continuing apps, retention rollout of and

Let strong the performance the XX%, basis in pandemic. growth beginning of users from monthly fastest Bumble on users Bumble and rate on year-over-year paying revenue by growing QX Starting Bumble you APT. very app had some with app coming quarter a ARPPU. me registrations details both app, give active since the the global with and at On a grew the

a record saw improvement daily XX% Growth, and and achieved active customer by QX, in material also retention. re-engaged in users users of and levels in engagement increase fueled registration, We customer reactivation,

Our effective way innovate most serving to teams continue safe, in Forward-thinking, and to possible. we that our the ensure are users

at searching was all-time During relationships an women pandemic, serious the for high.

really for our So, we members in-depth updated between those and to process profiles for more compatibility the customers. more relationships, two serious increase to robust looking create prompting on-boarding

We for with Bumble time reality model men. also the women-first with Bumble features than app Global our levels expansion The engagement. to our And partnered that in users. on XX% leads extended experienced with of by In Night power snap really Demonstrating video spent high chat. and major on be that of continues we QX India increased Growth. average the to a platform ecosystems time balanced XX% into more to our higher trivia of all driver apps for bring augmented to for women, healthier the

the also highest region, very driver The continued by Benelux of and at XXX% growth a QX, users by to growing Western local with France XXX% targeted grow and Other very revenue, market monthly year-on-year. XX% representing over saw rate. our now rapid over fourth to over revenue of As including at a DACH we marketing active in year-over-year, our U.S. revenue started with the to continued growing parts Europe, efforts. supported of rapid reopen be and growth, growth region UK Ireland major

progress pleased using presence still are social of as of product our a seeing we of and in and being in VX Despite BFF. the QX, monthly to India, app binding users active we our As Southeast are BFF. our friend XX% continue Asia platform with Bumble discovery be

teams. suggest over features Are our our early hard encouraging features of at months. BFF Our appetite product The our work next-generation, next and we for use building expect out these the several are of under development. that results start tests and strong are new rolling new platform, to the

increase an day updates really our their testing, our first users beta continue the interest BFF, over feature interest to We in forward adding to we as on XXX% example, providing launch. new on look profile. of advance we For saw to more

pandemic user Badoo a including the the and Europe And the which middle The areas. broader revenue in Badoo community, the America. other is has in of COVID. Eastern XX% to So app to app Western predominantly still significant is in now many large and QX. pressures which Badoo number is economic a and challenge global particular population in from these of urban faced let's class, a year-on-year in turn grew and operating markets, scale to player Latin

QX. download third-party While markets in legacy especially has share conditions. platform, its our And has under been these according maintained user of gained to in web in or growth, sources, challenged Badoo major most

call week taking XX% of The this is and that monetization chat, quarter over pleased and in team in got at engagement major hold. of U.S. on to including And we're engagement QX. Payer engagement a fueled years. of successes. penetration Brazil the user growth. Day We've we growing highest XX% X increased user has to healthy at on and focused and do and of rates to efforts have improving user X on and seeing in report of we're increase X measures growth very in are Badoo are good at double-digit our and our evidence in increase However, core our starting see which their many many a all on our iOS. remained many markets, improving one user focused monetization metrics levels success, our retention

be the recover we first, experiences initiative with of you This have towards first of trauma is one-time one It to something of our not every to changes assault? Level, entire to Badoo in as markets forward we cannot range improvement a pandemic. and announced on the will our during that [Indiscernible] look aiding a Inc. emerged conditions, second us as I follow. investment that that industry reintroducing behavior focused how run and user embedded we business. For an app the conditions Covid week, are tailored Last on out a this accountability. dating is just key partnership or entire to pandemic half launching on aspect in economies this the the the of to of silo. Bloom is it and coming our Bumble elements and year, continued features to and from improve and and the a provide special to is make users industry Badoo me focus survivors important an hope team. We to new support are the sexual safety And of up is tell we back who

our the This catch user analytics ours quality with QX, issue, of of actors a chats are continuing been major experience and learning machine very on reducing better. make brands. pleased set is the we faced with models potential of experiences our even improving improve to our continuing before of expertise our We machine abuse. deploy Badoo. more Even if new now experiences to focus a all results. a and have moderation data In of We an after. bad And across we on push apps learning a the to the that made with

think we our remains team priorities on As against strategic long-term our growth the plan. Bumble of focused executing Inc., about and future

make app app, and to grow looking Our technology organically first first for and can quickly our Badoo are app group Both our accountable easily of users move, of pressure. and kindness. to without build, the kind, always the platform stay built Bumble shared the accountability, women's communities. and by leveraging engineering where and consists real the connections women today on make We're excellence new foundation safety, where technology

the values, see supports long-term to globe relationships presence, we We that, helping And and and communities also thank time say our over today, can of CFO, our expand new Anu. will that can of believe through mission help to mission a our very across for your Inc's equitable our businesses with much so and all with to tremendous, customer healthy you want Bumble find demographics. now opportunity, us opportunities one, reaching I own. acquire it brand geographies stages their consistent hand I lives, and

Anu Subramanian

quarter the momentum of QX, with everyone. to year-over-year. an And last Total versus in XX% In adjusted XX% hello, business An saw XXX revenue performance. million, Thanks, and XX% was we of margin. Whitney. EBITDA higher-than-expected QX a year. representing in And XX continued grew increase in adjusted EBITDA revenue increase our million

X% in the which in a was Bumble over $XX.XX, as versus increase the users of XX% QX of for a addition by driven revenue quarter. last An second As was million. well quarter revenue quarter, deferred purchase total to year-over-year. was in XX% improvements XXX,XXX reminder, growth app of of and QX. XX% sequentially from Bumble the year reduction grew users, total to revenue in ARPPU, million revenue strong XXX representing which an X.X strong app paying XX% growth Growth recorded increased million year-over-year impacted grew X accounting. XXXX by paying as in

the of As contributions Netherlands, In Whitney region people, Europe outpacing dach pleased from by the Europe, women which of our and year-over-year our saw with in than growth X% Throughout with Bumble XXX%. expansion be North $XX.XX, paying growth Western was user and as in in we with with for community robust men apps Belgium. noted, for year-over-year, up app from the Bumble exceptional, are we sequentially. being as to than Austria, strong newer regions. well We grew metrics America, with in rates QX, our QX continued XX% strength launch growth continues the triple-digit Switzerland, the international our more more was people XXX%. especially growing that were women quarter for

very tiers During the end completed two-thirds adoption to pleased that rate I'm And of as the of than launch the of the in Android quarter, QX, two-tier to higher of the for our continues be users. of say we more new remaining markets.

new of Within offerings. we work app, Bumble expect consumables introduction continue monetization our to the the subscription and with

app, user XX% we spotlight, For year-over-year. paying X.X June, example, app to Bumble users. X% markets, Similar extended app, in an penetration as in million Premium, increasing up and which revenue the with which increased year-over-year. to of learnings in Brazil, tier X% QX the million QX, from saw the up visibility came increased we were provides we our QX. delivered results. Badoo for will such was people Drawing Paying other payer for pricing XX and year-over-year out from our launched Russia, improvements the which core super rolling on in in to launch Badoo users, Badoo U.S., our growth strong $XX.XX. later Bumble Badoo be

the in We both expect QX. with iOS to the launch on remaining U.S. follow first in and markets the Android, closely

into our entry the for as on a providing ongoing, Badoo addition, next-generation users. in prior on In convert of consumable on we work is paying our products to mentioned also low as quarter, work members we point

XX% impact the of line account of last up revenue. to of compensation. now an to discuss onetime QX revenue On will basis, costs. was higher fees, Cost stock-based And excluding which on in million expenses, Turning I compared aggregator grew of XX year. transaction these with adjusted

flat revenue, XX%. As XX quarter a percentage of year-over-year. million this and expenses at in Sales were XX% marketing year-over-year was up the

percentage was and up slightly in from XX% revenue a it last QX from revenue, year. year, As XX% this XX% QX in of of down

up As the the the of and some at beginning leaned France, Netherlands, in into Germany, campaigns summer, we opened markets UK. reopening U.S.,

around nimble in-field initiatives next line to year. with marketing higher reopening in absolute driven Company G&A We back be quarter spend and spend public will in than by come last as including session. colleges in increased XX% of expansion marketing But in dollars market in in efforts investing was this continue Asia on-campus QX XX million costs. of mainly or QX headcount and efforts, year, in revenue our

million, increase year, XX over Second-quarter adjusted XX%. adjusted EBITDA margins the to prior XX% grew an of EBITDA of representing

leverage revenue As operating rapid are has in shown to we our growth, business. demonstrate our top-line continuing

which to modification generated with in XX We loss was expense at we ended of the of X and of net a for million compensation QX from last equity for awards stock-based up was quarter, million of Our the QX million primarily cash. due year, million XX IPO. quarter, XXX

into that our momentum confident year. outlook, to Bumble Turning will are apps of second the on the half our we continue

come exposure that, Badoo ability But the in to Delta. curves, And itself markets EBITDA. expect impact be to we more has is revenue geographic guidance our outlook. through our momentum increased both through Bumble the see the to and pleased While demographic hence, some shown end we full-year our Badoo in that given up Reduced feel, cobot vaccine on the QX And app continue confident prominent With to resilient its the raise pandemic. year. of we're our for captured may and this is these than for from footprint. full-year as

range. XX% to the Looking range the a ahead expect revenue of to we in million representing QX, XXX rate of XXX growth of total the million, midpoint at

of XX% a million, adjusted to expect million We of the the EBITDA at XX margin in represents to XX be which range midpoint.

expect growth in at of XXX midpoint a of rate the range we year, full the XX% to XXX the of million range. For the revenue

expect adjusted close revenue midpoint. profitability. we EBITDA million, EBITDA, represents which We disciplined, our out, improving first-half grow very strong while and to a had at margin an our a of XXX to For the performance. we XX% demonstrated To ability scale staying business, XXX

to will to ability the strategic increased our now execute in that, and business take momentum reflects your our confidence Our guidance direction. in our And question. with we happy our on be

Operator

you. Thank

As stand [Operator roster. while we Q&A a compile Please the reminder by Instructions].

JP first comes Carpenter question with Cory Morgan. Our from

open. Your line is now

Cory Carpenter

the for thanks questions. Hey,

but from this latest for the opening the Thanks. I impact And markets assumptions such all the in on Whitney cases, upside as from bit, surge slowing on COVID U.S. in XQ, some Annual comments, of the a momentum your on saw at expand of in Tariq, a in just could evidence then any bit of revenue seeing the you key you kind for could hoping you the one that you're expand of your some guidance. think and the of you in first touched drivers

Tariq Shaukat

with Hey, U.S. piece guess from the in Delta from In Thanks Tarik. first not the particular, the spread impact seeing Cory. we're any for the COVID, Bumble start Sure. on This I'll material the I question. is app. variant

I are U.S. very to that well. think the markets perform continuing

markets experiencing that app true For generally are Bumble the us this on resurgence is worldwide, Bumble Delta. on that even in of

As in as Bumble no we general, mentioned, particularly there impact. COVID on seeing is more is But sign of of said, Badoo I both pre-pandemic a the real no in international where impact Bumble more little and bit is at Badoo. impact highs some engagement on an markets

this Andrew quarter. said, as confident very feeling, we're about so, And

Whitney Wolfe Herd

only markets as obviously markets, the we've around Sure. pricing our people Badoo. been growth international our has I And seen with our function the at both think QX two-tier we like about been been new just which comments, board on but question, second in out our said lot across strong expansion. and really a side not of people Bumble users exciting in growth lot in growth. that pleased momentum. look Bumble also as in And very of is really paying the a doing Corey, to and And my your has work existing growth we We've of we've our our paid for for very the a

with engagement all just Badoo first-half far. growth As of overall in we the this, at Bumble XX% of markets. we've many at Our growing XX%, and thought about up with if strong, with our healthy revenue guidance, QX has momentum super so we've shown very had and pleased And XX% take you been strong in business

the the that of midpoint between expect at seen assumes UK, vaccination the the We're I at that And America, today we're if and expecting and we also at down markets And and high the so strong QX we're app, market QX, the sequentially growth will for that that app and are rates far like see our grow are and QX finished of we benefits for Bumble we And so, guidance to said, all continue guidance cetera, across we're to because into major North Western our seeing and progress it Europe, that look paying our are roll-out QX, as about, users the growth we've break rates markets. we will in midpoint. two-tier, but in revenue by tier. as super full-year continue XX% raising where very you users the confident our people, we XX% the both at we in very at come range, people. growth expect And expanding, as in that said, et to more do dock, positive including like our QX. price the I in of the of higher continue new about

think we is in our the that that actually news And So been talking as here about. higher-priced recent and for interestingly that addition, in the X/X positive been growth in has QX. more about of seen very in we've people us we've than QX adoption months,

actually what for year markets, rest positive upwards of the signals XX% So, in very adoption we've the looks growth the like. about seen App. Again, And some of very, of think upwards we -- Badoo XX%. as of of

where mentioned, have a large base middle-class. has higher a large-scale Badoo also footprint impact has And experienced & it from a today, urban they its and users are geographic As R D, I COVID.

think and about which growth. a user on very do But we we're tiers of from excited move users. and Badoo actually expect monetization for beneficial see very as rollout X we some be impact will perspective. to paying into the we QX, So,

full-year this we guidance. confident raising if So, all together, feel about you very of our put

Cory Carpenter

Thank you.

Operator

Thank you.

Jones next question with Citi. Nick comes Our from

open. is line now Your

Nick Jones

should bit the think then the Thanks. are needle think bring of features, guess AR guess still how futures there new partnership about little rest thanks that the meaningfully you questions. maybe potential we for impact Snap year usage. on on about can there. to I features tell first And do increasing Great, features product kind any and onboard? additional the could what be There's move a you the the could for I users, of some

Tariq Shaukat

is so question. Nick, Hey Sure. this a great

and Let turn. me Bumble about talk in Badoo

a features Or on what We're engage calling I more think Bumble are serious lot side that we're helping more intentional shifted our preferences a a of is really lot focus on focusing on we're from have mentioned users relationship standpoint, think their to seeing as we that of. dating. focused what relationships. Whitney these the on

and are But intentional and serious meaning in for plan the, As a really really the users coming activities much looking intentional clear is more to from experience people to the are that. lot are relationship done trying a -- make for about market. dating, are do what to as tools our relationships and what we've better into types QX them they're talking as that give like the dating we of well that and of focused for on that QX, QX that

a too areas active In with on in early addition of top last like a experiments to with about lot about going But really the and what features, active that and pieces. those just in depth testing over doing referenced to well. areas of new more of video optimization talked we we're is a monetization that's a we're is the quarter, features. And world. those that that talked consumable lot as what very that about snaps the work on probably go augmented I part of We what have of some program features reality, exploration as do of of into the doing. And building different some innovation I parts

on bit little side, a the on, very across features, help to what profile similar robustness of pandemics? from more people the dating Badoo. element, are of of and updates story, But start Bumble the out focused we do It's Badoo how algorithmic On seem largely come kind as again, around. they of lag geographic Bumble themes same the matching better we because in seeing a both footprint. Intentional we're a

the second half year. us kind of are of All of together in coming this for those

Nick Jones

the for thanks questions. Great,

Operator

you. Thank

Mike Sachs. next with comes question Goldman from Our Ng

is line open. Your

Mike Ng

had contributors as on if the strong Good very I then quantify for quarter. Thank just a question. Al the to the app, really at some [Indiscernible] very it the help IOS the you afternoon. Hey. could Bumble I and of two-tier the as in you was growth. much much of some one was the products? in carte' acceleration How Androids, innovation you much. to the Thank year-over-year really Pricing was rollout well and wondering

Anu Subramanian

Mike. Thanks, Sure.

when So, to subscribers, talked when were number XX% also for we our long range. complete. said to to to system. not of fluids we've the year. when of prior pickup that terms sort turn a consumables actually the that. we that users. -- subscribed gone old question, actually been as the of markets, has the if higher small number they XX% the was launched all had that that one Obviously, now, like and users migrating more of we an Bumble That are XX% up products. subscribers starting users actually largely And and Bumble, tier a obviously, was in they answering upwards we're due been paying we're of In on the to closer monetization re-enter on here. Premium, you still two-tier in I package to really has two-tier because actually to see for that Bumble about also now add-on moving number of have in subscription will into still we well, the also And the that always people continue paying focused are many we've That started the is number this work last start of pricing out we and recall, system case and Bumble was users said, now tail out, they the I as adoption And prior of price which we

from still the has seen taking obviously to into Bumble in about ARPPU, think we really two-tier important But huge growth move which Badoo. as is So new the a the of why very to that price us, been the especially learnings to part tier. app needs you've

that and into and every but to to As bid the subscriptions and make are that rest see the also be forward, to review going about having improvements in, we on itself real competitive market elasticity, will adjust in think continuing on to we're you of continue price it the pricing we and a us work all market year doing manifests in that ARPPU. sure iterate

exciting us. very for So that's

of are features we power remarks on increased the visibility mentioned It form that working my additional consumable a in I'd launched consumables. is you're that extended in user. provides in We product a an spotlight if prepared June.

So people quarters. have that consumables testing, the as interesting And few about that in are us a we other our that the helps are hear that improve to talk will well. in few where works, you next

Mike Ng

Fantastic, you, Anu. that's really helpful. Thank

Operator

Thank you.

with RBC. question next from Brad Our Erickson comes

Your open. line is

Brad Erickson

Thanks. I I'll to guess on just follow that comment. last

that? the just less to consumables thing year every a bit roll that alongside out of be those maybe tiers, like Like What's you that mentioned, it for going new new curious. Just little guys example, those, to the is cadence or by products? expect than some which potential you is frequent

Tariq Shaukat

Yeah.

kind think a that'd I when be process. launch multistep of we have

the test can of geographically out. the it and a and we from is we the got and advantages from are of things and engagement and impact of demographic, before the one build a and We we've that a roll value the footprint learners, active standpoint confidence very lot test in segmentation

possible those not to hundreds generally always continuously. role adds I'm for on dozens, experience to experiments users. the have user, enhancements when at if we is want the our out. we best That really that given user actually find pretty, to value so, material experience. of something We the time And going provide we any to

but the comes it annual little to bit a monetization, certainly, about. is than that you're these talking frequency more, that try you're, together As we bundle on to a more

are times be that drive users year, we the it experience year to course, speaking, launching how might a generally changes but our depends from or year, really lumpy trying the expect a driving believe we would to So, on innovation have. little -- of And several in big frequently.

Brad Erickson

a follow-up, just Bumble the have just the you helpful landscape lately of That's And seen in philosophy. guess to brand. what competitive the for I Thanks. kind of understand terms then

about I if the a major you can MSAs curious Just particularly think. some sort diversification-wise of bit, where feeling your share how beyond you're of

competitors your just would of great. have be there Some also Thanks. strength shown some an lately, update,

Whitney Wolfe Herd

U.S. speaking, are in, download to mentioned holding the Yeah. rapid scaled share. data is that or majority the we in Whitney gaining of Sure. Hi, looking including that growth Bumble very operate third-party of we continuing on earlier, according markets the we're are app. briefly And we sources this as see course, at to so we

you look somewhere competitors last six material expense are in share declining. But the player across not the any gaining when the do of see So, is Bumble. months some at any scaled who growing we landscape,

a important in our and in innovation us the I but continue technology and competitive we'll part to us us decades that a to invest think has also big our come. learning, allows to carry to advantage our continuously invest not it's that reinvest product mode of to in confident and in innovation very such we our really been We gives machine And very that we're note. success our brand, date. just which

same with are or markets Badoo second. just to COVID that of for app pandemic. it's most really those dealing while So, a more it's quick a are in I the slightly Well, challenged holds. gaining also the the to markets from standpoint, operating think the share, turn important We're holding point

for customer, continue competition, our the most and obsessively we we're the to listen attention on course, is to make for to And but of can I our build point important we focused we we that here are customer the focused optimize users. and So customer. the paying always

the competition experience are be a continue for and providing very best do want, successful we risk. will that they If you by will to very continue confident not to that, be what we

Tariq Shaukat

build X Anything the strong on in the just of to we specifically in in second that the cities. MSA larger presence the terms geographies, for and have U.S. a

build. We are continuing to

in in in like Tier Our towns Whitney city areas well, and the just tier college geographic X that. or expansion, U.S. internationally, mentioned as focusing not X particular with as and on other cities but Anu

geographically to Southeast the to Europe opportunities to we're do we Asia. U.K. in established and our U.S. and the diversify addition So, like work see Western in in continue doing even really markets

Whitney Wolfe Herd

point, very make, strong. if the to just an that, And is algorithm the continue the stay learning not want the for issue brand competition we're confident us. to on continuous improvements focus is that I machine final we and overdo so is not really in to point the this And

Brad Erickson

That's great. Thanks.

Tariq Shaukat

Thanks, Brent.

Operator

Thank you.

Our next Shweta Khajuria Evercore, open. the is from question your comes with line

Shweta Khajuria

me, Okay. please. from Thank Two you. questions

Shweta Khajuria

us is please other you outsized engagement there. to And you mentioned You're the I where drove seeing India you there you over engagement BFF strengthening anything which engagement was about call that talk to saw reasons think that features that so out like particular called few in particular next and is, the geographies engagement? any You in new you Can trends? trivia out would roll the then and implies trending? question second months, to how some why. planning some are out

what you Thanks. could you're BFF? please seeing talk with your about So,

Whitney Wolfe Herd

Sure Great. Thank you so for question. much the

that relationship, exists TAM opportunity has does more stage the pandemic. platonic throughout BFF. become the finding let's to the the The friend-finding opportunity exceptional times It's had in-demand for their and category. friend People this important and start only loneliest within even really across progressed BFF. So, an in the exist important on set

friend-finding we brand li women's of so, that for have -- have be broader BFF the Bumble using brands. immense XX% fact lifestyle permission ultimately a today users a and also that much us tells we to our And broader

and XX% the for is together, has growth So, when -- with product the those seeing out viable early more are focus product feature, in lean just onboarding our is XXX% what a you at to a of users BFF the new ability life of getting to today, Into early is shore this the we are go. friends, that we date to using the for this be we call. markets And use whereas very both what providing very and seen on in monetization. this historically the users XXXX and communities, will in next are earnings minimum coming are ultimately both sign groups And it really what development, the find of that's connect the over signals very beyond the BFF much and And to improving which product when photonically, our to you fundamentally ahead certainly look And are huge do position customer, that higher on data to developments, really actually which just date-only strong and in test innovations really to these into flow look product. and users for not that experiments opportunity, us led validate the we is than the to how opportunity is active in to this with future, future engagement ARPU we've product both currently. the that daily Date increase to already in an continues to one-to-one update experience. excited

Tariq Shaukat

turning call of to I around think out. part first couple of your things we your there's would engagement, And a question that

is them think I efforts that do. the mentioned, earlier what is I we one around of optimization

experience, improving that efforts the those teams have overstate improving for how engagement on it's boost are important just in We etc. hard are the and really onboarding us. experience, focused continuing to retention to

of that certainly piece one So is it.

more think have want to do such algorithm, have we improvements think recommendation in second been capabilities with. to significant of a interest. give data express in we we've changes to people invested that really their And actually that is you're as how actually asking very heavily us and or our, I people we what do likely most identify connection to to investing algorithmic some who our we match in around our people ability matching. And as seen lot a

app we not what as who of the at matchmaking in? And algorithm. telling XX% the We that the moment just interested of are us part use on profile Bumble people are information, the but have they about

was piece. seen elements I far catastrophe widely And in the India. So was that that from all best post-match that of had has at as mentioned. video markets of these and so that QX all of the in it we've response combination like quite we India then engaged during if happening just And the for probably use India. adopted the people first despite obviously chat India, in that's particular, Night certainly of the few the in India some and a is the who second pieces you Plus, are Night side In pre-feature, referenced look

did outside it on world. virtual provide in think going like for an to I ability really real them outlet people world, -- what So, in of the for connect the this outside of was

Shweta Khajuria

Thanks, Okay. Thanks, Brinlea. Tariq.

Whitney Wolfe Herd

you. Thank

Operator

you. Thank

Our Blackledge from Cowen. comes John next with question

open. is line Your

John Blackledge

Thanks. X questions.

secondly, levels. potential And bps be strong very and EBITDA something any up in relief Store or down of from first-half app solid margins margins incremental with the on half updated timing. a First, the with then guide, thoughts the implied back XXX couple

just So curious.

First about you. half second Thank in driving investments the compression. margin slight the

Anu Subramanian

Sure. Hey John.

store of regulatory So around obviously fees. app there is ton scrutiny a

We are imagine. can very it watching of as you closely all

see know be, we the So, will we conversation be happens from what will waiting those conversations. to

assumes Our current EBITDA and guidance second means them this us. for They've the we're impact with from having conversations half Google to XXXX. partners great minimal what about Play, for been

share what them for definitely With about we respect Our means us, all that about are your And of you. as ongoing. you more information them to still question EBITDA, discussions with are right. we will have with

want with invest marketing. as our opportunistic as half concerned, to I to our respect We've investment like said in present to incremental nimble far things about themselves. we as are be think be want we is opportunities second business to already continuing planning that we and the

terms what reopening one you the of and is, have markets will to and marketing is respect see guided reopening. areas the where to continue and in do it. Obviously, to we've our plans goal see and of for that us QX, biggest with is our QX making that's So, investment, to world, happens what we

well thing field plans months one So, we've that marketing taking that. we XX to over our digital will adjust a and in grassroots the XX is the that But way. ground, effective our last on the very marketing the on on to marketing really based we've transitioned done

think sure make as step how That's our terms super-efficient in capital. we of will QX. we down So, deploy into that you what's from are built a guidance we that about

yeah. So

John Blackledge

you. Thank

Operator

you. Thank

from Marck James. Our Raymond next question from comes Andrew

Your open. line is

Andrew Marck

thinking could given the the the that effect demographics thanks size Bumble the Thanks. question. taking Hi, about two in should apps. between versus the the of it for we the and the customer have differences at my pricing app two-tier for or be penetration payer magnitude opportunity rates Badoo How in and app. a

Anu Subramanian

that you can absolutely customer Premium how of Bumble their you're Bumble. we we see spent Bumble the take in benefit two-tier right. mean that. few for behaves pay a are after would I ton learnings all Sure. is, launching of is of Obviously, propensity have what and Badoo I And versus to from markets having terms in. last there have us launched the the quarters launching differences

price are that we launch things we we differently the as custom is, of doing as Badoo -- the launched where One Bumble the lower two-tier be expect customers tier to today. will at same

With the additional higher tier, including consumables.

markets. the all different we slightly we makes how that launch. many strategy confident We've our been people many us Premium. we a very than ready tests it's in and strong will start So, as that launched see I'm Bumble doing

launch So, at of we look end starting forward QX. you the happens, again to once updates the giving more

out from benefit do because - is X faster having a we will we're learnings Another planning Bumble. us much of of Again, tier. all you the see the thing rollout rate have

the the see of you'll rollout And through end us so, accelerate Badoo. the for year

Andrew Marck

Thank Great. you.

Operator

you. Thank

Our Schenk from next from Lauren Morgan comes question Stanley.

is open. line Your

Lauren Schenk

taking Hey, thanks for my question.

impacted from any seeing on by you're impact then like on would that any it's your be IDFA year, marketing then expecting broadly. implied Delta the in comps Just of fourth quarter third but last Fourth-quarter, secondly, and the not in color the you're driver behind sort Quarter what just Badoo, on the quarter Fourth there being acceleration wondering looks efficiency just the helpful. And guide, just maybe it tougher that, is in

Lauren Schenk

much. so Thanks

Anu Subramanian

Sure, I'll hand part, it take the first over to Tariq, I'll and you.

continuing about In you Bumble rollout app, the terms markets. the are things about international QX, the our as think of there of X uptick very excited we're in

from coming as newer you'll healthy So, new benefits already launched, two-tier for we as Badoo we growth from part expect again, the we've launch see we we an ARPPU of excited see. of big. Asia see the And two-tier products So Badoo, to the of Europe, such as more planned of of as And markets good expect for about uptick to Northern some markets, that's the in Bumble, on some in of is that perspective [Indiscernible] about have think well them coming dock, pipeline. Some also launching From etc. growth

QX. our people think results increasing Our that that see will the done, nice we Like of was of that growth. I in telling part about we've already the test how show come test out lot just us a growth, of have

QX Tariq. the So, about excited are about we that think growth. as we

Tariq Shaukat

And the on Lauren IDFA question.

able even We I'm very to that to team how IDFA. marketing been are seeing through navigate and proud essentially the we've date. even through of actually to CPI's our down flat slightly

only that I'd on about acquisitions. XX% of things rely organic performance is channel. we a customer of And we that remind have the of so for everyone very One marketing our new or strong

how the even good news do us certainly things we for in the so scale are And done. is helped pretty team think been terms are that generally as working far, us but that through, it's CPIs so And continue general. this, we've in has stable it's through the that we've through But they I of something currently navigated working further. to

Lauren Schenk

you much. so Okay. Thank

Operator

you... Thank

question Our Jefferies. next from Thill with comes Brent

line open. is Your

Brent Thill

barely are through bigger don't business, overtime. BFS could think different you creatively look advertising there I a open And for work you our you've the to us, advertising segment longer-term, monetization thinking up among think I'm year-on-year. the get models mentioned as excited could models in about Your and business, other was BFF. attach? short you ways term. much example, if Whitney. But or know this you of revenue of there at curious you are you're do

Whitney Wolfe Herd

A the much about. questions. excited so very for thanks I'm Hi, topic

dating. that subscription, cases, different obviously of but There ahead are three answer different These use monetization us, friend. from very categorize ones absolute. ways. right? are major the for today the in short is different give a we we Number specifics, Looking opportunities for in you're So, cannot love is one, probably would interest a you seeing from looking

but model So, the opportunity back into subscription are bullish the in the future. way on different, would we will the of subscription we around course, be very

way down on for, advertising The spend megawatt This prime is economy is time an we really advertising. exciting is creator and call audience is know are But opportunity would opportunity. the to our second we category that. want talking the earnings this One third today's the category don't about products very we a look about of be go would what the like that was opportunity, we But approach the to kind categories talk category, road. excited And you one more dating those mainstream broadly of the this BFF about as we all the several years exploding would launching the just when to ago. again, future. three of we were friend-finding is as back first XXXX an I Tinder,

we're so, excited And about very horizon, growth the

Brent Thill

GOs. the terms to Maybe for that one you that quick new mentioned or had one most kind you the there would bounce follow-up was were surprised two you the back, excited just stood take just a the a regions of really back just there But would that are characterize that in on a you territory couple. by? know how or you out. you if of strongest bounce consider I

Anu Subramanian

Sure.

started comments. we've in a perspective this to and perspective said We've the perspective. I some growth think as a growth But really impressive user do well a DACH see revenue from well. region penetration I really seen my payer from

hit as ton we a like well. pretty the features by that for with I in revenue earlier, So level us release really dach that but of that's pretty saw region keep exciting. perspective, and a engagement we COVID, India. total the mentioned is was from in surprised helped Tariq strong been a top hard Like markets market we think were Obviously, of India QX

Brent Thill

Thank you.

Operator

you. Salmon question Dan next our comes with from Capital Thank And BMO Markets.

is open. line Your

Dan Salmon

and one everyone. Hi, the what certain grow and probably road? down or right you're this features, megawatt make lines maybe on it portfolio. entire, make whether the maybe Thanks. Whitney, look opportunity opportunity doesn't the latest what to on you into two a priorities call see And the more right. you might bit afternoon, markets, on a go to But on sense more To your advertising now. entire right It differentiation expand M&A I maybe could now, think views just makes your sense good certain your on

Whitney Wolfe Herd

Sure. the M kick I'll first. & on thank questions, you for A off the

to love begin opportunity at you of I accelerate scale a our we where by for term that we that level. think are I'd that & app, to the customer player are position us and M&A at growth So, right. and for and is maintain opportunities A a open in not and untapped incredibly incredibly believe horizons and to significant is very for look the like is if itself, group saying this Bumble love growth which has we in extensibility M but we the requirement potential as fortunate is also said, very when growth the we Badoo, tremendous

to and approach lot both So, operational that financial we have rigor. disciplined a with a of very

that to equitable way this supplement when healthy relationships. And and opportunities? and All acquisitions way? we're scale building reinforcing can find we our well. few technology, looking marketing, growth essentially, tailored help is into we ultimately safety, And M&A, opportunities we at more with reach and questions just take a through make-or-buy deeper And be when at audiences of and can mission it our a more how makes new leverage We're for and other ways aligned connect? people looked huge to of sense. How build and operational members monetization going that our as So that look will leverage brands safely as we can and is how opportunity in them and infrastructure, pre-existing we platform at criteria. helping financial our every have

gives here. We of flexibility strategic have a foundation of engineering lot a us excellence that

We huge The opportunity shared our other thing of a have hub so sources, And benefit. right? we to a note that this is group. is model, share really have we resources within a to are

of content This actually follow advertising the the when them post-experience. [Indiscernible] real Let's or at relevant models quick online, did interesting the remarkable people's them traditional world? lean this most very second. BFF to When send shared has struggles. look to for turn doesn't their for shared places opportunity you a in it is into also joys you opportunity and us to at advertise really look

find our with opportunity this huge in we in historically if And job we advertising really send is people Likely find is just opportunity BFF, over-indexed do to user is look really interest programmatic, great you brands, very where partnerships are brand people ultimately, advertising partnerships. there have in huge this There's it's If a help the from well, unique but partnership engagement people them and and for offline. there. real that model needs. similar about quality. each from towards there. the high the back we other audience. tapping Also, And very, not We into world excited community

this keep so, to is something in mind. And

Dan Salmon

Thank you.

Operator

you. from question with Steve SMBC Thank next And Nikko. comes Koenig our

open. line Your is

Steve Koenig

right. your Thank why got kind Congratulations. Bumble Great to quarter. housekeeping make a on very for a question you Anu, of question item? don't numbers I housekeeping want just much. Whitney I for sure I got with Raise. the and guidance good one here start I really

the from that million if -- headwind X deferred mentioned the X was write-down in million in I I you was So, it and recall correctly, QX. QX,

correct how one That's long by to be and So, thinking then am write turn follow -- de for in I that diminished down with minimis? And that so I headwind that that will up million? go out when to How on? will housekeeping does the and Whitney. X

Anu Subramanian

Sure.

total QX are our would had so purchase accounting you where the was numbers impact see on some terms So, it. XX if in of million, XXXX at impact you QX look and most

have of left go just half little in the we So, to a year. the second

Steve Koenig

driving good. commentary relationships app. order Bumble them more the for to about interesting out to serious detailed more cultivate Thanks Very in Okay. encourage on that. profiles And to Whitney, then, fill users

And Just how driving or kind to is of of bit kind curious the that shift little treat of model think we that center of how, here? a the initiative? kind a efforts about a that gravity what's of is your should in

Whitney Wolfe Herd

to just understand want I make your I appropriately. question sure

features referenced So, product more are earlier? about talking moving serious into the you we dating,

Steve Koenig

Yes, exactly.

Whitney Wolfe Herd

Great. Okay.

really our meet. we on ultimately for looking QX helping and and meet we people customer onboarding. are that really but start looking with them more how the people information this they're actually same for, that Collecting was at approach that those the to things So, want the in they the this way

out less So, seen filling from a Bumble -- were was superficial those what's and and members a serious looking -- -- on-boarding in XX% that were be that me prompted profile. and app our in section budges increase in connecting increase drink? XX% was for you we about robust horizon then our budges this a for relationship. members do out out your religion? increase children? could profiles, you their a filling What's actually There QX in updated in them And create updated your XX% a Do XX% the to anything filling increase in lifestyle And you Instagram. members lifestyle Do on there also questions their was members

has kind really ultimately on So helped find of relevant building matches. robust more really the DNA people really a customer

Steve Koenig

in improve what's kind a it thanks perhaps it. color curious for will really I'm Is engagement kind part are that I'm on question that is user the of driving ultimately, or What environment, you, is market there belief your that. the And are driving of that efforts what's curious seeing opportunity of you that curious more the current grow about, of that kind what about of kind I'm about? quickly that? is

Whitney Wolfe Herd

recognized and Ultimately, more us women told data, is really than And Tariq I'll looking to and continuously both feature I want. had ask customer more we our before. to ever for. We add the invest what to serious customers then them course. wanted of it. constantly but things this few in relationships that start our I know Sure, as say through some also And to We detail listening through this what always are they're a would the well. more rollout. love surveys. led would they driving this

Tariq Shaukat

right solve I we're you need for relationship you to the are in. that is think that make for whatever experience sure trying that biggest interested the is to type

people the are trying the people looking for biggest said pandemic that. can They serious changes That there who state that explicit as And can moment tools most when relationships, being what of want is, like of surprised. people people get meet seem and seen to in there are the are just with compatible with they possible. to know one things at we've there to but general, the they're as you is quickly so types in that. Nobody looking looking them So, they for relationships for. are we're the more more And is give about them.

Steve Koenig

color. much the Got for it. Great, well thanks very

Whitney Wolfe Herd

Thank you.

Operator

comes Thank you. next Your And from line is question from our Champine Capital Lauren open. Luke

Lauren Champine

back Thank What you. for new Just that the than one in little our It's came thoughts line. a quick on what the? half comp that are of housekeeping expected. higher stock-based a for your You're we

Anu Subramanian

Sure.

is IPO, the was to there's XX quarters, uptake leading the number stock-based million comp higher did over grants do this new we quarter quarter. as future which higher expense. than that our you if We IPO. was So, equity expect well post awards, higher that primarily the posted expect post RQX as see We number the we number an moderate due this to modification to but this this of do

Lauren Champine

should that rate this roughly year, of of into run then think the And next correct? we half the is of that at back year,

Anu Subramanian

That's right. Yes.

Lauren Champine

Thank Great. you.

Operator

Instructions] you. Thank wonderful [Operator day.

Bumble (BMBL) 12 Aug 212021 Q2 Earnings call transcript