Bumble beats earnings estimates and bets on international growth

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The Bumble Inc. (BMBL) app is shown on an Apple iPhone in this photo illustration as the dating app operator made its public debut on the Nasdaq stock exchange on February 11, 2021. REUTERS/Mike Blake/Illustration

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March 8 (Reuters) – Bumble Inc (BMBL.O) beat fourth-quarter earnings estimates on Tuesday and said it expects strong growth for its Bumble app in 2022, sending the company’s shares soaring encounters by more than 20% in prolonged exchanges.

The company also said it was ceasing operations in Russia, joining a growing number of companies leaving the country after 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 accounted for about 2.8% of total annual revenue in 2021. It expects to lose about $20 million. dollars of revenue in the region this year.

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For 2022, Bumble forecasts full-year 2022 revenue of between $934 million and $944 million, the midpoint of which is nearly in line with analyst estimates, according to IBES data from Refinitiv.

The company is also increasingly focusing on expanding into the international market.

“We expect Bumble App to have another strong year in 2022 and grow revenue by 34% to 36% 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 virtual platforms to meet new people and develop personal and professional relationships. Now, even with the reopening of the economy, the increase in users caused by the pandemic has not diminished.

The company, which consisted of the Bumble and Badoo app, recently bought French Fruitz in its first acquisition in a bid to boost its presence in Europe, where it is catching up with Tinder owner Match Group (MTCH.O) . Read more

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

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Reporting by Tiyashi Datta and Chavi Mehta in Bengaluru; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

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