Bumble's App Revamp And Underwhelming Q1 Guidance Keeps The Analysts Waiting - Details Here

Bumble BMBL stock tanked after the company issued first-quarter revenue guidance below estimates and announced a quarter-over-quarter decline in paying app users.

Wall Street firms cut their price targets on the stock.

Piper Sandler analyst Matt Farrell maintained Bumble with a Neutral and lowered the price target from $8 to $7.

Stifel analyst Mark Kelley reiterated Bumble with a Hold and lowered the price target from $7 to $6.

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Piper Sandler: Bumble delivered fourth-quarter results slightly ahead of expectations. However, management provided first-quarter guidance below expectations and did not provide a full-year outlook. The company’s focus on safety and user experience creates a near-term headwind on the business.

Bumble anticipates a ~110K sequential decline in Bumble app payers in the first quarter. Overall, it is clear that the multi-quarter turnaround will be choppy as the company focuses on enhancing the platform for the long term.

Farrell sought signs of sustained stability before getting more constructive on the story. The price target revision reflects the analyst’s lower profitability estimates. Farrell projected first-quarter revenue of $245.1 million and EPS of $0.18.

Stifel: Bumble reported a slightly better fourth quarter but guided the first quarter below the Street as the company continues to work through management turnover and a broad-ranging app refresh. The Fruitz and Official apps are winding down as management opts to streamline its core product offerings.

The priorities for Bumble are pretty similar to that of its larger competitor, Match Group, which is also focused on a healthier ecosystem that looks to prioritize safety and authenticity, which Kelley agreed should be a main focus for every company in the category, but also noted these shared priorities will increasingly make it challenging for dating apps to differentiate their offerings in the future.

With only a first-quarter guide in hand and little color for the entire year, the analyst remains Hold-rated pending a better picture of the path forward. Kelley projected first-quarter revenue of $245.0 million and EPS of $0.15.

Price Action: BMBL stock is down 26.9% at $5.919 at last check Wednesday.

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