GlobeNewswire Inc | Mar 10, 2021 04:05PM EST

March 10, 2021

Fourth Quarter Revenue Increased 31% to $165.6 millionBumble App Fourth Quarter Revenue Increased 47% to $105.8 millionBadoo App and Other Fourth Quarter Revenue Increased 10% to $59.8 millionFourth Quarter Total Paying Users* Increased 32% to 2.7 million

AUSTIN, Texas, March 10, 2021 (GLOBE NEWSWIRE) -- Bumble Inc. (NASDAQ: BMBL), the parent company of Bumble and Badoo, today reported financial results for the fourth quarter and full year endedDecember 31, 2020.

We are committed to our mission, our customers and to advancing the business, which fueled our strong fourth quarter and full year 2020 results, said Whitney Wolfe Herd, Founder and CEO of Bumble. Our significant increase in revenue and paying users is a direct result of our teams dedication and remarkable agility during a challenging pandemic. Looking ahead, we remain focused on driving scale, investing in our users and expanding internationally. Our IPO was a pivotal milestone, but we are just getting started and are excited for the next chapter of our journey.

Full year 2020 revenue increased to $582.2 million from $488.9 million in 2019. Full year revenue was comprised of $40.0 million for the period from January 1, 2020 to January 28, 2020 and $542.2 million for the period from January 29, 2020 to December 31, 2020. Full year 2020 Total Paying Users increased 22% year over year to 2.5 million.

Fourth Quarter 2020 Operational and Financial Results:(All comparisons relative to the Fourth Quarter 2019)

-- Revenue increased 31.1% to $165.6 million, compared to$126.3 million. Bumble app revenue increased 46.6% to $105.8 million and Badoo app and other revenue increased 10.5% to $59.8 million. -- Total Paying Users increased 32.5% to 2.7 million, compared to 2.0 million. -- Total ARPPU was $20.02, compared to $19.99. -- Net loss was$(26.1) million, or (15.7)% of revenue, compared to net earnings of $17.2 million, or 13.6% of revenue. -- Adjusted EBITDA was$44.1 million, or 26.6% of revenue, compared to$21.9 million, or 17.3% of revenue.

Full Year 2020 Operational and Financial Results:(All comparisons relative to the Full Year 2019)

-- Revenue was $542.2million for the period from January29, 2020 to December 31, 2020 and $40.0million for the period from January1, 2020 to January28, 2020, compared to $488.9million. -- Bumble App Revenue was $337.2million for the period from January29, 2020 to December 31, 2020 and $23.3million for the period from January1, 2020 to January28, 2020, compared to $275.5million. -- Badoo App and Other Revenue was $205.0million for the period from January29, 2020 to December 31, 2020 and $16.7million for the period from January1, 2020 to January28, 2020, compared to $213.4million. -- Total Paying Users increased 22.2% to 2.5 million, compared to 2.1 million. -- Total ARPPU was $18.89, compared to $19.22. -- Net (loss) earnings was$(110.2) million, or (20.3)% of revenue, for the period from January29, 2020 to December 31, 2020 and $(32.6)million, or (81.4)% of revenue, for the period from January1, 2020 to January28, 2020, compared to $85.8million, or 17.6% of revenue. -- Adjusted EBITDA was$143.1million, or 26.4% of revenue, for the period from January29, 2020 to December 31, 2020 and $9.4million, or 23.4% of revenue, for the period from January1, 2020 to January28, 2020, compared to $101.8million, or 20.8% of revenue.

During the fourth quarter, we demonstrated our ability to continue to scale the business and rapidly adapt to the pandemic, while expanding Adjusted EBITDA, added Anu Subramanian, CFO of Bumble. Looking ahead, we believe we are well positioned to drive growth in users and capitalize on our significant market opportunity.

*Please see Definitions section below for the definition of Paying Users

Key Operating Metrics:

Quarter Quarter(in thousands, except ARPPU) Ended Ended December December 31, 2020 31, 2019Bumble App Paying Users 1,268.7 890.6 Badoo App and Other Paying Users 1,424.6 1,142.9 Total Paying Users 2,693.3 2,033.5 Bumble App Average Revenue per Paying User $ 27.79 $ 27.00 Badoo App and Other Average Revenue per Paying $ 13.10 $ 14.52 UserTotal Average Revenue per Paying User $ 20.02 $ 19.99

Financial Outlook:

Bumble anticipates Revenue and Adjusted EBITDA for the quarter ending March 31, 2021 and year ending December 31, 2021 to be:

First quarter 2021:

-- Revenue in the range of $163 to $165 million -- Adjusted EBITDA in the range of $41 to $42 million.

Full year 2021:

-- Revenue in the range of $716 to $726 million -- Adjusted EBITDA in the range of $173 to $178 million.

Actual results may differ materially from Bumbles Financial Outlook as a result of, among other things, the factors described under Forward-Looking Statements below.

With regards to the Non-GAAP Adjusted EBITDA outlook provided above, a reconciliation to GAAP net earnings (loss) has not been provided as the quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-GAAP adjustment for certain legal, tax and regulatory reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.

Conference Call and Webcast Information

Bumble will host a conference call and live webcast to discuss its fourth quarter and full year 2020 financial results at 4:30 p.m. Eastern Time today, March 10, 2021. To listen to the live conference call, please dial toll free (833) 362-0206 or (914) 987-7675, access code 1162237, approximately 10 minutes prior to the start of the call. A webcast of the call and other information related to the call will be accessible on the Investors section of the Companys website at https://ir.bumble.com. A webcast replay will be available approximately two hours after the conclusion of the live event.

Definitions

Bumble App Average Revenue per Paying User is calculated based on Bumble App Revenue in any measurement period, divided by Bumble App Paying Users in such period divided by the number of months in the period.

Bumble App Paying User is a user that has purchased or renewed a Bumble subscription plan and/or made an in-app purchase on the Bumble app in a given month. We calculate Bumble App Paying Users as a monthly average, by counting the number of Bumble App Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Badoo App and Other Average Revenue per Paying User is calculated based on Badoo App and Other Revenue in any measurement period, excluding any revenue generated from advertising and partnerships or affiliates, divided by Badoo App and Other Paying Users in such period divided by the number of months in the period.

Badoo App and Other Paying User is a user that has purchased or renewed a subscription plan and/or made an in-app purchase on the Badoo app in a given month (or made a purchase on one of our other apps that we owned and operated in a given month, or purchase on other third-party apps that used our technology in the relevant period). We calculate Badoo App and Other Paying Users as a monthly average, by counting the number of Badoo App and Other Paying Users in each month and then dividing by the number of months in the relevant measurement period.

Predecessor refers to Worldwide Vision Limited and its consolidated subsidiaries. Worldwide Vision Limited operated the trade of Bumble Inc. prior to the consummation of the acquisition (the Sponsor Acquisition) on January 29, 2020 of a majority stake in Worldwide Vision Limited by a group of investment funds managed by The Blackstone Group Inc.

Successor refers to Buzz Holdings L.P. and its consolidated subsidiaries. Buzz Holdings L.P. was formed primarily as a vehicle to finance the Sponsor Acquisition. Following completion of the initial public offering on February 16, 2021, Bumble Inc. is now the holding company of the group.

Non-GAAP Financial Measures

We report our financial results in accordance with GAAP, however, management believes that certain non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. These measures include: Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Conversion. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide visibility to the underlying continuing operating performance by excluding the impact of certain expenses, including income tax provision, interest (income) expense, depreciation and amortization, stock-based compensation expense, foreign exchange loss (gain), changes in fair value of contingent earn-out liability and interest rate swaps, transaction costs and one-time litigation costs, as management does not believe these expenses are representative of our core earnings. In addition to Adjusted EBITDA and Adjusted EBITDA Margin, we believe Free Cash Flow and Free Cash Flow Conversion provide useful information regarding how cash provided by operating activities compares to the capital expenditures required to maintain and grow our business, and our available liquidity, after funding such capital expenditures, to service our debt, fund strategic initiatives and strengthen our balance sheet, as well as our ability to convert our earnings to cash. Additionally, we believe such metrics are widely used by investors, securities analysis, ratings agencies and other parties in evaluating liquidity and debt-service capabilities. We calculate Free Cash Flow and Free Cash Flow Conversion using methodologies that we believe can provide useful supplemental information to help investors better understand underlying trends in our business.

Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) is defined as net earnings (loss) excluding income tax (benefit) provision, interest expense (income), depreciation and amortization, stock-based compensation expense, foreign exchange loss (gain), changes in fair value of contingent earn-out liability, changes in fair value of interest rate swaps, transaction costs and one-time litigation costs.

Adjusted EBITDA Marginrepresents Adjusted EBITDA as a percentage of revenue.

Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures.

Free Cash Flow Conversion represents Free Cash Flow as a percentage of Adjusted EBITDA.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation statements reflecting our current views with respect to, among other things, our operations, our financial performance and our industry and other non-historical statements, including without limitation the statements in the Financial Outlook section of this press release. In some cases, you can identify these forward-looking statements by the use of words such as outlook, believe(s), expect(s), potential, continue(s), may, will, should, could, would, seek(s), predict(s), intend(s), trends, plan(s), estimate(s), anticipates, projection, will likely result and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include, but are not limited to, the following:

-- our ability to retain existing users or attract new users and to convert users to paying users -- competition and changes in the competitive landscape of our market -- our ability to distribute our dating products through third parties, such as Apple App Store or Google Play Store, and offset related fees -- the impact of data security breaches or cyber attacks on our systems and the costs of remediation related to any such incidents -- the continued development and upgrading of our technology platform and our ability to adapt to rapid technological developments and changes in a timely and cost-effective manner -- our ability to obtain, maintain, protect and enforce intellectual property rights and successfully defend against claims of infringement, misappropriation or other violations of third-party intellectual property -- our ability to comply with complex and evolving U.S. and international laws and regulations relating to our business, including data privacy laws -- foreign currency exchange rate fluctuations -- risks relating to certain of our international operations, including successful expansion into new markets -- Affiliates of The Blackstone Group Inc.s (Blackstone) and our Founders control of us -- the outsized voting rights of affiliates of Blackstone and our Founder -- the inability to attract hire and retain a highly qualified and diverse workforce, or maintain our corporate culture -- changes in business or macroeconomic conditions, including the impact of the Coronavirus Disease 2019 (COVID-19) (and other widespread health emergencies or pandemics) and measures taken in response, lower consumer confidence in our business or in the online dating industry generally, recessionary conditions, increased unemployment rates, stagnant or declining wages, political unrest, armed conflicts or natural disasters

For additional information on these and other factors that could cause Bumbles actual results to differ materially from expected results, please see our prospectus, dated February 10, 2021, filed with the Securities and Exchange Commission (the SEC) pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended, on February 12, 2021, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SECs website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Bumble

Bumble Inc. is the parent company of Badoo and Bumble, two of the worlds highest-grossing dating apps with millions of users worldwide. The Bumble platform enables people to connect and build equitable and healthy relationships. Founded by CEO Whitney Wolfe Herd in 2014, the Bumble app is one of the first dating apps built with women at the center, and the Badoo app, which was founded in 2006, is one of the pioneers of web and mobile dating products. Bumble currently employs over 700 people in offices in Austin, Barcelona, London, and Moscow.

For more information about Bumble, please visit bumble.com and follow @Bumble on social platforms.

Source: Bumble Inc.

Investor Contactir@team.bumble.com

Media Contactpress@team.bumble.com

Buzz Holdings L.P.Consolidated Balance Sheets(in thousands, except par value amounts)

Successor Predecessor December December 31, 31, 2020 2019ASSETS Cash and cash equivalents $ 128,029 $ 57,449 Accounts receivable 41,595 34,234 Loans to related companies ? 42,043 Other current assets 81,387 36,106 Total current assets 251,011 169,832 Right-of-use assets 11,711 16,291 Lease receivable 1,069 1,011 Property and equipment, net 16,833 14,033 Goodwill 1,540,915 ? Intangible assets, net 1,812,410 1,241 Deferred tax assets, net ? 7,055 Other noncurrent assets 3,319 835 Total assets $ 3,637,268 $ 210,298 LIABILITIES AND BUZZ HOLDINGS L.P. OWNERS? / WORLDWIDE VISION LIMITED SHAREHOLDERS? EQUITYAccounts payable $ 23,741 $ 8,066 Deferred revenue 31,269 24,749 Accrued expenses and other current liabilities 180,986 88,649 Current portion of long-term debt, net 5,338 ? Total current liabilities 241,334 121,464 Long-term debt, net 820,876 ? Deferred tax liabilities 428,087 ? Other liabilities 62,190 59,152 Total liabilities $ 1,552,487 $ 180,616 Commitments and contingencies Buzz Holdings L.P. owners? / Worldwide Vision Limitedshareholders? equity:Limited Partners? interest (2,453,785 Class Aunits and 153,274 Class B 1,903,121 ? units issued and outstanding as of December 31,2020)Issued share capital ($0.0001 par value;126,424 shares authorized; 108,431 ? 11 shares issued and outstanding as of December31, 2019)Additional paid-in capital ? 3,449 Accumulated other comprehensive income 180,852 644 Treasury stock (6,940 shares as of December 31, ? (3,788 )2019)Retained earnings ? 23,352 Total Buzz Holdings L.P. owners? / Worldwide 2,083,973 23,668 Vision Limitedshareholders? equityNoncontrolling interests 808 6,014 Total owners? / shareholders? equity 2,084,781 29,682 Total liabilities and owners? / shareholders? $ 3,637,268 $ 210,298 equity

Buzz Holdings L.P.Consolidated Statements of Operations(in thousands, except per unit data)

Successor Predecessor Successor Predecessor Period Period Quarter Quarter from from Year Ended Ended January January Ended December December 29, 1, December 31, 2020 31, 2019 through through 31, 2019 December January 31, 2020 28, 2020Revenue $ 165,605 $ 126,301 $ 542,192 $ 39,990 $ 488,940 Operatingcosts and expenses:Cost of 44,612 34,713 146,629 10,790 139,767 revenueSelling andmarketing 48,077 40,561 152,588 11,157 142,902 expenseGeneral andadministrative 50,495 19,706 178,615 44,907 67,079 expenseProductdevelopment 17,079 10,195 46,994 4,087 39,205 expenseDepreciationand 25,996 1,831 91,767 408 6,734 amortizationexpenseTotaloperating 186,259 107,006 616,593 71,349 395,687 costs andexpensesOperating (20,654 ) 19,295 (74,401 ) (31,359 ) 93,253 (loss) incomeInterest(expense) (7,430 ) 156 (22,134 ) 50 202 incomeOther expense, (8,999 ) (1,989 ) (5,525 ) (882 ) (1,473 )net(Loss)earnings (37,083 ) 17,462 (102,060 ) (32,191 ) 91,982 before taxIncome taxbenefit 11,017 (250 ) (8,126 ) (365 ) (6,138 )(provision)Net (loss) (26,066 ) 17,212 (110,186 ) (32,556 ) 85,844 earningsNet earningsattributableto 908 5,111 808 1,917 19,698 noncontrollinginterestsNet (loss)earningsattributableto BuzzHoldings $ (26,974 ) $ 12,101 $ (110,994 ) $ (34,473 ) $ 66,146 L.P. owners /WorldwideVision LimitedshareholdersNet loss perunitattributable to BuzzHoldingsL.P. ownersBasic loss per $ (0.01 ) ? $ (0.05 ) ? ? unitDiluted loss $ (0.01 ) ? $ (0.05 ) ? ? per unit

Buzz Holdings L.P.Consolidated Statements of Cash Flows(in thousands)

Successor Predecessor Successor Predecessor Period Quarter Quarter Period from from Year Ended Ended January 29, January Ended December December through 1, December 31, 2020 31, 2019 December through 31, 2019 31, 2020 January 28, 2020Cash flowsfrom operatingactivities:Net (loss) $ (26,066 ) $ 17,212 $ (110,186 ) $ (32,556 ) $ 85,844 earningsAdjustmentsto reconcilenet (loss)earnings tonet cash provided by(used in)operatingactivities:Depreciationand 25,996 1,831 91,767 408 6,734 amortizationChange infair value of (242 ) ? 1,586 ? ? interest swapChange infair value of 8,700 ? 27,800 ? ? contingentconsiderationNon-cash 442 666 (109 ) (226 ) 952 lease expenseDeferred (22,935 ) 201 (789 ) 26 201 income taxStock-basedcompensation 14,350 1,080 27,468 4,156 2,160 expenseNet foreignexchange 1,965 600 6,945 (198 ) 600 differenceResearch anddevelopment (307 ) (593 ) (1,211 ) ? (2,374 )tax creditOther, net 169 221 3,604 31 201 Changes inassets and liabilities:Accounts 19,933 15,192 10,737 (17,599 ) (5,971 )receivableOther current (23,261 ) (24,802 ) (46,949 ) (2,175 ) (21,144 )assetsAccounts 9,649 (1,556 ) 2,970 12,984 (252 )payableDeferred 1,479 287 22,169 289 1,360 revenueLegal (5,249 ) (268 ) (18,374 ) (521 ) (1,811 )liabilitiesAccruedexpenses and 50,576 20,357 38,806 32,075 34,523 other currentliabilitiesOther 21 369 27 ? 369 liabilitiesNet cashprovided by(used in) 55,220 30,797 56,261 (3,306 ) 101,392 operatingactivitiesCash flowsfrom investingactivities:Capital (4,853 ) (3,337 ) (10,632 ) (1,045 ) (9,674 )expendituresAcquisitionof business, (36,444 ) ? (2,837,706 ) ? ? net of cashacquiredOther, net (1,866 ) 25 (2,313 ) 16 (1,722 )Net cash usedin investing (43,163 ) (3,312 ) (2,850,651 ) (1,029 ) (11,396 )activitiesCash flowsfrom financingactivities:Proceeds fromrepayments ofloans to ? ? 41,929 ? ? relatedcompaniesDebt issuance (4,824 ) ? (21,105 ) ? ? costsLimitedPartners? 25,626 ? 2,360,412 ? ? interestProceeds from 275,000 ? 850,000 ? ? term loanRepayment of (2,125 ) ? (5,000 ) ? ? term loanIssuance of ? (41,965 ) ? ? (41,965 )loansProceeds fromissuance of ? 104 ? ? 104 sharesDividends (360,000 ) ? (360,000 ) ? (23,359 )paidOther, net ? 24 ? ? 24 Net cash(used in)provided by (66,323 ) (41,837 ) 2,866,236 ? (65,196 )financingactivitiesEffects ofexchange ratechanges on 6,199 (1,151 ) 2,513 813 (640 )cash and cashequivalentsNet(decrease)increase incash and cash (48,067 ) (15,503 ) 74,359 (3,522 ) 24,160 equivalentsandrestrictedcashCash and cashequivalentsandrestricted 176,353 72,952 53,927 57,449 33,289 cash,beginning ofthe periodCash and cashequivalentsand $ 128,286 $ 57,449 $ 128,286 $ 53,927 $ 57,449 restrictedcash, end ofthe periodLessrestricted 257 ? 257 ? ? cashCash and cashequivalents, $ 128,029 $ 57,449 $ 128,029 $ 53,927 $ 57,449 end of theperiod

Reconciliation of GAAP to NON-GAAP Measures

Reconciliation of Net (Loss) Earnings to Adjusted EBITDA

Successor Predecessor Successor Predecessor Period Period Quarter Quarter from from Year(in thousands, Ended Ended January January Endedexcept December December 29, 1, December percentages) 31, 31, through through 31, 2020 2019 December January 2019 31, 28, 2020 2020Net (loss) $ (26,066 ) $ 17,212 $ (110,186 ) $ (32,556 ) $ 85,844 earningsAdd back: Income tax(benefit) (11,017 ) 250 8,126 365 6,138 provisionInterest expense 7,430 (156 ) 22,134 (50 ) (202 )(income)Depreciation and 25,996 1,831 91,767 408 6,734 amortizationStock-basedcompensation 14,350 1,080 27,468 336 2,160 expenseLitigation costs(recoveries), netof 1,357 ? (6,008 ) ? ? insuranceproceeds^(^1)Foreign exchange 9,212 1,654 14,133 523 1,160 loss ^(2)Changes in fairvalue of interest (242 ) ? 1,586 ? ? rate swaps^(^3)Transaction costs^ 14,403 ? 66,251 40,345 ? (^4)Changes in fairvalue ofcontingent 8,700 ? 27,800 ? ? earn-outliabilityAdjusted EBITDA $ 44,123 $ 21,871 $ 143,071 $ 9,371 $ 101,834 Net (loss) (15.7 ) 13.6 % (20.3 ) (81.4 ) 17.6 %earnings margin % % %Adjusted EBITDA 26.6 % 17.3 % 26.4 % 23.4 % 20.8 %Margin

________

Represents certain litigation costs and insurance proceeds associated with pending litigations or settlements of litigation. For additional(1) information, refer to Note 17, Commitments and Contingencies, within the audited consolidated financial statements and Item 3. Legal Proceedings in our Annual Report on Form 10-K for the year ended December 31, 2020.(2) Represents foreign exchange loss due to foreign currency transactions.(3) Represents fair value (gain) or loss on interest rate swaps.(4) Represents transaction costs and professional service fees related to the Sponsor Acquisition and the initial public offering.

Reconciliation of Net Cash Provided By (Used In) Operating Activities to Free Cash Flow

Successor Predecessor Successor Predecessor Period Period Quarter Quarter from from Year(in Ended Ended January January Endedthousands, December December 29, 1, December except 31, 31, through through 31,percentages) 2020 2019 December January 2019 31, 28, 2020 2020Net cashprovided by(used in) $ 55,220 $ 30,797 $ 56,261 $ (3,306 ) $ 101,392 operatingactivitiesLess: Capital (4,853 ) (3,337 ) (10,632 ) (1,045 ) (9,674 )expendituresFree Cash $ 50,367 $ 27,460 $ 45,629 $ (4,351 ) $ 91,718 FlowOperatingCash Flow (211.8 )% 178.9 % (51.1 )% 10.2 % 118.1 %Conversion^(^1)Free CashFlow 114.2 % 125.6 % 31.9 % (46.4 )% 90.1 %Conversion

________

Operating Cash Flow Conversion is calculated based on net cash provided by(1) (used in) operating activities as a percentage of net earnings (loss) in any measurement period.